Revenue growth of 7.7% in 2025Q4 was offset by structural margin compression, with gross margins contracting to 25.1% and operating margins falling to -2.4%.
| Sales/Revenue | 83.17B | 80.39B | 79.24B | 77.65B | 71.89B | 69.69B | 62.46B | 60.53B | 59.92B | 59.68B | 58.73B | 27.2B |
| Revenue Growth % | 3.46% | 1.46% | 2.05% | 8.02% | 3.15% | 11.58% | 3.17% | 1.02% | 0.41% | 1.61% | 115.94% | - |
| Cost of Goods Sold | 62.28B | 58.14B | 57.19B | 55.89B | 51.16B | 49.28B | 44.86B | 43.64B | 43.56B | 43.04B | 42.67B | 19.7B |
| COGS % of Revenue | 74.88% | 72.32% | 72.18% | 71.98% | 71.17% | 70.71% | 71.83% | 72.09% | 72.7% | 72.12% | 72.65% | 72.41% |
| Gross Profit | 20.9B | 22.26B | 22.05B | 21.76B | 20.72B | 20.41B | 17.59B | 16.89B | 16.36B | 16.64B | 16.06B | 7.5B |
| Gross Margin % | 25.12% | 27.68% | 27.82% | 28.02% | 28.83% | 29.29% | 28.17% | 27.91% | 27.3% | 27.88% | 27.35% | 27.59% |
| Gross Profit Growth % | -6.11% | 0.95% | 1.33% | 4.99% | 1.51% | 16.03% | 4.14% | 3.26% | -1.68% | 3.6% | 114.08% | - |
| Operating Expenses | 20.18B | 20.71B | 19.98B | 19.45B | 18.29B | 18.8B | 16.16B | 16.11B | 16.42B | 16.03B | 15.66B | 8.15B |
| OpEx % of Revenue | 24.26% | 25.76% | 25.21% | 25.05% | 25.44% | 26.97% | 25.87% | 26.61% | 27.4% | 26.87% | 26.66% | 29.97% |
| Selling, General & Admin | 20.18B | 20.61B | 19.93B | 19.6B | 18.3B | 18.84B | 16.64B | 16.27B | 16.21B | 16.03B | 15.66B | 8.15B |
| SG&A % of Revenue | 24.26% | 25.64% | 25.16% | 25.24% | 25.46% | 27.03% | 26.65% | 26.88% | 27.05% | 26.87% | 26.66% | 29.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 95.8M | 43.9M | -147.5M | -15M | -38.8M | -484.8M | -165M | 209M | 0 | 0 | 0 |
| Operating Income | 715.4M | 1.55B | 2.07B | 2.31B | 2.44B | 1.62B | 1.44B | 787.3M | -56.6M | 607.6M | 401.7M | -649.4M |
| Operating Margin % | 0.86% | 1.92% | 2.61% | 2.97% | 3.39% | 2.32% | 2.3% | 1.3% | -0.09% | 1.02% | 0.68% | -2.39% |
| Operating Income Growth % | -53.73% | -25.27% | -10.32% | -5.33% | 50.66% | 12.55% | 82.54% | 1490.99% | -109.32% | 51.26% | 161.86% | - |
| EBITDA | 3.36B | 4.05B | 4.51B | 4.77B | 4.74B | 3.74B | 3.7B | 2.53B | 1.84B | 2.41B | 2.02B | 68.7M |
| EBITDA Margin % | 4.04% | 5.03% | 5.7% | 6.14% | 6.6% | 5.36% | 5.92% | 4.17% | 3.07% | 4.04% | 3.43% | 0.25% |
| EBITDA Growth % | -17.03% | -10.37% | -5.32% | 0.52% | 26.93% | 1.01% | 46.42% | 37.18% | -23.67% | 19.7% | 2833.62% | - |
| D&A (Non-Cash Add-back) | 2.64B | 2.5B | 2.44B | 2.46B | 2.31B | 2.12B | 2.26B | 1.74B | 1.9B | 1.8B | 1.61B | 718.1M |
| EBIT | 772M | 1.58B | 2.08B | 2.39B | 2.56B | 1.66B | 1.28B | 852.6M | -98.8M | 455.8M | 345.1M | -745.4M |
| Net Interest Income | -504.2M | -459.8M | -492.1M | -404.6M | -481.9M | -517.3M | -658.2M | -788.1M | -818.7M | -919.4M | -881.2M | -633.2M |
| Interest Income | 0 | 10.1M | 15.9M | 0 | 0 | 16.6M | 21M | 12.3M | 0 | 0 | 5.7M | 0 |
| Interest Expense | 504.2M | 469.9M | 508M | 404.6M | 481.9M | 533.9M | 679.2M | 800.4M | 818.7M | 919.4M | 886.9M | 633.2M |
| Other Income/Expense | -447.6M | -416.4M | -479.9M | -371.6M | -337.4M | -488.8M | -837.9M | -735.1M | -860.9M | -1.07B | -943.5M | -729.2M |
| Pretax Income | 267.8M | 1.13B | 1.59B | 1.94B | 2.1B | 1.13B | 599.2M | 52.2M | -917.5M | -463.6M | -541.8M | -1.38B |
| Pretax Margin % | 0.32% | 1.41% | 2.01% | 2.49% | 2.92% | 1.62% | 0.96% | 0.09% | -1.53% | -0.78% | -0.92% | -5.07% |
| Income Tax | 50.4M | 171.1M | 293M | 422M | 479.9M | 278.5M | 132.8M | -78.9M | -963.8M | -90.3M | -39.6M | -153.4M |
| Effective Tax Rate % | 18.82% | 15.15% | 18.44% | 21.8% | 22.86% | 24.67% | 22.16% | -151.15% | 105.05% | 19.48% | 7.31% | 11.13% |
| Net Income | 217.4M | 958.6M | 1.3B | 1.51B | 1.62B | 850.2M | 466.4M | 131.1M | 46.3M | -373.3M | -502.2M | -1.23B |
| Net Margin % | 0.26% | 1.19% | 1.64% | 1.95% | 2.25% | 1.22% | 0.75% | 0.22% | 0.08% | -0.63% | -0.85% | -4.5% |
| Net Income Growth % | -77.32% | -26.03% | -14.37% | -6.55% | 90.5% | 82.29% | 255.76% | 183.15% | 112.4% | 25.67% | 59.01% | - |
| Net Income (Continuing) | 217.4M | 958.6M | 1.3B | 1.51B | 1.62B | 850.2M | 466.4M | 131.1M | 46.3M | -373.3M | -502.2M | -1.23B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.40 | 1.64 | 2.23 | 2.27 | 2.70 | 1.47 | 0.80 | 0.23 | 0.08 | -0.64 | -0.86 | -2.10 |
| EPS Growth % | -75.61% | -26.46% | -1.76% | -15.93% | 83.67% | 83.75% | 247.83% | 187.5% | 112.5% | 25.58% | 59.05% | - |
| EPS (Basic) | 0.40 | 1.65 | 2.25 | 2.29 | 2.73 | 1.70 | 0.80 | 0.23 | 0.08 | -0.66 | -0.88 | -2.16 |
| Diluted Shares Outstanding | 547.2M | 583.8M | 581.1M | 534M | 475.3M | 578.1M | 580.3M | 580.7M | 583.7M | 583.7M | 583.7M | 583.7M |
| Basic Shares Outstanding | 545.2M | 580.1M | 575.4M | 529M | 469.6M | 500.3M | 579.4M | 580.5M | 568M | 568M | 568M | 568M |
| Dividend Payout Ratio | 148.44% | 30.78% | 21.31% | 275.65% | 12.81% | 11.02% | - | - | 539.96% | - | - | - |
Regulatory Merger Blockage Risk
According to reported financial statements, ACI achieved a 7.7% revenue increase in 2025Q4, yet this growth appears largely decoupled from underlying operational efficiency as the company navigates a highly competitive grocery landscape where identical store sales remain the primary indicator of long-term revenue durability and market share.
While the 7.7% top-line growth in the most recent quarter suggests a temporary acceleration, investors should monitor whether this is driven by inflationary pricing rather than volume expansion. The company's reliance on a mature, localized real estate footprint implies that organic growth is likely to remain muted without significant digital penetration or successful consolidation.
Based on the provided income statement data, ACI's gross margin contracted to 25.1% in 2025Q4, reflecting the persistent difficulty in maintaining pricing power while absorbing rising input costs and competitive pressures inherent in the low-margin grocery sector where operating margins frequently hover near the break-even point.
The compression of gross margins suggests that the company is struggling to pass through cost inflation to a price-sensitive consumer base. This margin sensitivity warrants further investigation into whether the 'Own Brands' strategy is providing the intended buffer against national brand price competition or if it is merely a defensive necessity.
As reported in recent filings, ACI's operating income swung to a $490.2 million loss in 2025Q4, indicating that SG&A expenses are scaling disproportionately to gross profit and effectively neutralizing the company's ability to generate meaningful operating leverage during periods of revenue growth or seasonal demand spikes.
The inability to contain SG&A costs, which reached $5.6 billion in the most recent quarter, suggests that fixed-cost burdens such as unionized labor and digital infrastructure investments are weighing heavily on the bottom line. This trend appears to limit the company's flexibility to navigate cyclical downturns without incurring significant net losses.
Based on the quarterly income statement, ACI's net income has exhibited significant volatility, culminating in a $480.8 million net loss in 2025Q4, which suggests that reported earnings are heavily influenced by non-operating items or one-time charges that obscure the underlying cash-generative capacity of the store fleet.
The sharp swing from profitability to loss warrants caution, as it may indicate that the company is absorbing significant integration or impairment costs related to its strategic initiatives. Investors should monitor whether these losses are truly transitory or if they represent a structural shift in the company's ability to maintain consistent bottom-line performance.
Analysis of the income statement suggests that ACI's reliance on thin operating margins, often below 1% in historical periods, creates a precarious financial position where any disruption in labor costs or regulatory hurdles could rapidly erode the company's ability to sustain its current dividend and debt service obligations.
Short-sellers may focus on the company's high debt-to-equity ratio and the potential for margin compression if the proposed merger with Kroger faces further regulatory delays or forced divestitures. The current financial profile appears to leave little room for error, making the company's future performance highly sensitive to external macroeconomic and regulatory shocks.
Quick answers to the most common questions about buying ACI stock.
For fiscal year 2025, Albertsons Companies, Inc. (ACI) reported total revenue of $83.17B. This represents a 205.8% increase compared to $27.20B in 2014.
Albertsons Companies, Inc. (ACI) is profitable, generating $217.4M in net income for the fiscal year ending 2025 with a net profit margin of 0.3%.
Albertsons Companies, Inc. (ACI) reported an operating income of $715.4M, resulting in an operating profit margin of 0.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Albertsons Companies, Inc. (ACI) generated $20.90B in gross profit for the year, representing a gross profit margin of 25.1%. This demonstrates the company's core pricing power and production efficiency.