Albertsons 10-Q: Q2 Net Income Falls 69%, Goodwill Tested, Kroger Trial Underway
ACI sits 22% above its 52-week low of $10.86.
Summary
Albertsons' Q2 10-Q confirms the profit collapse disclosed last week — net income down 69% to $51.5M — and reveals an interim goodwill test that passed but left $327.9M of goodwill at risk, plus revolver borrowings that doubled to $825M.
Key Events · Earnings and Guidance · ACI
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Q2 Profit Falls 69%
Net income of $51.5M ($0.11 per share) versus $168.5M ($0.30) a year ago; Adjusted EBITDA $784.0M (4.1% of sales) versus $848.4M. Net sales were flat at $18,894.7M as identical sales excluding fuel fell 0.8%.
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Goodwill Tested, No Charge Taken
A sustained operating decline and lower market capitalization triggered an interim quantitative goodwill test. No impairment was recorded, but $327.9M of goodwill across three reporting units is flagged as reasonably possible of future impairment.
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Revolver Borrowings Double
ABL Facility borrowings rose to $825.0M from $425.0M at fiscal year-end, lifting total debt to $9,328.2M. Total ABL availability was $3,162.4M net of letters of credit.
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Buybacks Continue Into the Decline
The company repurchased 12,597,417 shares for $161.1M in Q2 at an average $12.66, leaving $1,704.8M under the authorization. Dividends of $0.17 per share were declared.
Analysis · ACI · Trade & Services
The full Q2 filing puts hard numbers behind last week's profit warning: net income of $51.5M ($0.11 a share) versus $168.5M a year ago, Adjusted EBITDA down to $784M from $848M, and identical sales off 0.8%. Two things matter beyond the income statement. First, the sustained share-price and operating decline forced an interim goodwill impairment test — nothing was written down, but $327.9M of goodwill across three reporting units is now flagged as reasonably possible of future impairment, so a charge could come if the turnaround stalls. Second, the company leaned on its revolver, with ABL borrowings up to $825M from $425M, while still buying back $161M of stock in the quarter. The Kroger damages trial began October 19, 2026, and a Washington opioid ruling is expected around November 5, 2026 — both are binary outcomes that could move the stock.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 37.4% of the 952 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.87%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ACI was trading at $13.30 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $10.86 to $20.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.