Albertsons Posts Full-Year Profit Despite $774M Opioid Settlement

Grocery giant raises dividend, expands share buyback program amid pharmacy headwinds

Apr. 14, 2026 at 9:13pm

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A photorealistic studio still life featuring a stack of pill bottles, a stethoscope, and a calculator, symbolizing the complex financial and regulatory challenges facing the pharmaceutical industry.Albertsons' $774 million opioid settlement charge underscores the pharmaceutical industry's ongoing legal and financial reckoning.Boise Today

Albertsons Companies, Inc., the Boise-based grocery chain, reported a net loss in its fourth quarter due to a nearly $774 million charge related to an opioid settlement, but posted full-year net income of $217 million. The company also announced a 13% dividend increase and expanded its share buyback program to $2 billion.

Why it matters

Albertsons' ability to deliver full-year profitability despite the opioid settlement charge and pharmacy-related headwinds demonstrates the company's operational resilience and disciplined execution. The dividend increase and expanded buyback program signal confidence in Albertsons' long-term growth prospects, even as it navigates industry challenges like the Inflation Reduction Act's impact on Medicare drug pricing.

The details

For the fourth quarter, Albertsons reported a net loss of $481 million, or 94 cents per share, driven by the $773.8 million opioid settlement charge. Stripping out the charge and other items, adjusted net income was $252 million, or 48 cents per share. Adjusted EBITDA rose to $903 million, up from $855 million a year earlier. For the full fiscal year, Albertsons reported net income of $217 million, or 40 cents per share, on 2.0% identical sales growth. Digital sales surged 21% and the loyalty program grew 12% to 51.2 million members.

  • Albertsons reported results for the 13 weeks ending Feb. 28, 2026.
  • The opioid settlement payments are expected to be spread over nine years.
  • The Inflation Reduction Act's Medicare drug price negotiation provisions took effect on Jan. 1, 2026.

The players

Albertsons Companies, Inc.

A Boise-based grocery retailer operating 2,244 stores across 35 states and Washington, D.C. under banners including Safeway, Vons, Jewel-Osco, and Shaw's.

Susan Morris

CEO of Albertsons Companies.

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What they’re saying

“Fiscal 2025 was a year of disciplined execution and resilience, as we closed the year with a solid fourth quarter that delivered strong Adjusted EBITDA despite meaningful top-line pharmacy-related headwinds.”

— Susan Morris, CEO of Albertsons Companies

What’s next

Albertsons projected identical sales growth of 0% to 1%, adjusted EBITDA of $3.85 billion to $3.93 billion, and capital expenditures of $2.0 billion to $2.2 billion for fiscal 2026. The company cited an estimated 150-basis-point headwind from the IRA's Medicare drug pricing program.

The takeaway

Albertsons' ability to deliver full-year profitability despite a major opioid settlement charge and pharmacy headwinds demonstrates the company's operational resilience. The dividend increase and expanded buyback program signal confidence in Albertsons' long-term growth prospects, even as it navigates industry challenges like the Inflation Reduction Act's impact on Medicare drug pricing.