UK supermarket Asda has reported a decline in earnings for the year ended 31 December 2025, despite making progress in reducing its debt and strengthening its balance sheet.
EBITDA fell to £764m in 2025, down 33.1% from £1.14bn the previous year. Sales also declined, slipping 3.3% to £21bn compared with £21.7bn in 2024. Like-for-like sales were down 3.1%, although this represented a slight improvement on the 3.4% decline recorded the year before.
Despite the softer trading performance, Asda reduced its net debt by £500m, bringing it down from £3.6bn to £3.1bn. Chairman Allan Leighton said the business had strengthened its financial position through disciplined cash management, ending the year with £1.3bn in cash and total liquidity of £2.1bn.
Turnaround progress
Commenting on the results, executive chairman Allan Leighton said the company is entering the next phase of its turnaround with a stronger operational and financial foundation.
“As we enter the second year of our turnaround, we have an improved customer offer, stable core systems, a strengthened balance sheet and a strong leadership team to deliver our Formula for Growth. Our progress in key areas like price, availability, and customer satisfaction is edging forwards, reflected in positive like-for-like sales growth in our stores for the last two months.
“At the same time Asda is far more than just a supermarket, with almost half of our total revenues last year coming from the wider group, which includes George, Express, pharmacy, optical, online and fuel. George and pharmacy outperformed their respective markets last year, demonstrating the breadth of our offer.
“I want to thank all our colleagues for their hard work and commitment. Their determination to make Asda better every day is what drives our progress.”
Financial position and outlook
Chief financial officer Michael Gleeson said the company’s improved liquidity provides a solid platform as it continues to execute its strategy.
“As we continued to make progress against our strategy, disciplined cash management meant we closed the year in a solid financial position, with more than £1.3 billion of cash on the balance sheet and total liquidity of £2.1 billion. Our operational performance continues to stabilise, and we have seen sales momentum build through the first quarter.”
