BOISE, Idaho — Albertsons Companies reported fourth-quarter results that highlighted ongoing pressure in pharmacy operations, while also announcing a major opioid settlement framework and a dividend increase that signals confidence in long-term cash flow.
For the fourth quarter ended Feb. 28, Albertsons reported identical sales growth of 0.7%, with pharmacy remaining a key driver but also a source of volatility amid pricing pressures and reimbursement dynamics. The company cited continued headwinds tied to industry mix shifts and the impact of the Inflation Reduction Act on drug pricing.
Those pressures were evident in the company’s bottom line. Albertsons reported a net loss of $480.8 million, largely driven by a $773.8 million charge tied to its opioid settlement framework. Excluding that charge, adjusted net income totaled $251.7 million, underscoring underlying profitability despite pharmacy-related challenges.
“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,” said Susan Morris, CEO of Albertsons Companies.
Morris continued, “Across the full year, we remained focused on building a stronger foundation for the future, including investing in our customer value proposition, advancing digital and loyalty, and strengthening the capabilities that support sustainable, long-term growth. As we enter fiscal 2026, we are building on this foundation by scaling our productivity engine and positioning the company to deliver earnings growth, strong cash flow, and long-term shareholder returns.”
Opioid settlement marks key step for pharmacy operations
A central development for Albertsons’ pharmacy business was the announcement of a $774 million opioid settlement framework intended to resolve substantially all claims brought by state, local, and tribal governments.
While the agreement weighed heavily on quarterly results, the company described it as a step toward resolving legacy litigation and reinforcing its role as a responsible pharmacy operator. The settlement does not constitute an admission of wrongdoing, and payments are expected to be made over nine years.
Albertsons underscored its ongoing investment in pharmacy practices focused on safe and appropriate medication use, highlighting the role of its pharmacists in patient education, adherence, and community-based care.
Dividend increase reflects confidence despite headwinds
At the same time, Albertsons announced a 13% increase in its quarterly dividend to $0.17 per share, signaling confidence in its ability to generate consistent free cash flow despite persistent pharmacy reimbursement pressures.
The move signals management’s view that the underlying business fundamentals remain intact, supported by growth in digital engagement and loyalty programs, even as pharmacy margins face structural challenges.
Pharmacy outlook remains pressured
Looking ahead, Albertsons expects continued pressure from drug pricing reforms, including Medicare drug price negotiations under the Inflation Reduction Act, which are projected to create a roughly 150-basis-point headwind to identical sales growth in fiscal 2026.
Even so, the company continues to invest in pharmacy operations, digital tools, and workflow efficiencies to support pharmacists and improve patient outcomes.
The quarter reflects a pharmacy business at an inflection point, balancing regulatory and reimbursement pressures with ongoing care-delivery investments, while addressing legacy opioid litigation and maintaining shareholder returns.
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