Molson Coors Reports Q2 2025 Earnings

From Molson Coors & Nick Kindelsperger:

Today, Molson Coors Beverage Company reported its Q2 2025 results. To read the full press release, click here.

For a deeper dive into the results announced today, please read the full press release here. The earnings slides and the webcast replay of earnings results are also available here.

This article contains forward-looking statements within the meaning of U.S. federal securities laws, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.
See our Q2 2025 earnings release issued August 5, 2025, which contains important cautionary information on forward-looking statement disclosure, definitions of non-GAAP financial measures and reconciliations to the most closely related GAAP measures included in this article. Underlying Pre-tax Income equates to Underlying Income before Income Taxes, Underlying Earnings Per Share equates to Underlying Diluted Earnings Per Share, each of which are non-GAAP financial measures and the presentation of amounts in constant currency are also non-GAAP financial measures.

GOLDEN, Colo. & MONTRÉAL–(BUSINESS WIRE)– Molson Coors Beverage Company (“MCBC,” “Molson Coors” or “the Company”) (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2025 second quarter.
2025 SECOND QUARTER FINANCIAL HIGHLIGHTS¹

Net sales decreased 1.6% reported and 2.6% in constant currency.
U.S. GAAP income before income taxes decreased 0.9% to $554.9 million.
Underlying (Non-GAAP) income before income taxes was $531.5 million, a decrease of 0.8% in constant currency.
U.S. GAAP net income attributable to MCBC of $428.7 million, $2.13 per share on a diluted basis. Underlying (Non-GAAP) diluted EPS of $2.05 increased 6.8%.
Updated or reaffirmed 2025 full year guidance for the following key financial metrics:Net sales: 3% to 4% decline on a constant currency basis, compared to low single-digit decline, previously

Underlying (Non-GAAP) income (loss) before income taxes: 12% to 15% decline on a constant currency basis, compared to a low-single digit decline, previously
Underlying (Non-GAAP) diluted earnings per share: 7% to 10% decline compared to a low single-digit growth, previously
Underlying (Non-GAAP) net interest expense: $225 million, plus or minus 5%, compared to $215 million, plus or minus 5%, previously
Underlying (Non-GAAP) free cash flow: $1.3 billion, plus or minus 10%, remains unchanged


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See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
CEO AND CFO PERSPECTIVES

Gavin Hattersley, President and Chief Executive Officer Statement:
“We continue to view the incremental softness in the industry performance this year as cyclical, and we continue to believe in Molson Coors’ ability to achieve its long-term growth objectives. That said, our second quarter financial results were impacted by the macroeconomic environment and its broad effects on the beer industry and consumer, our softer U.S. share performance, as well as the resulting impact of volume deleverage. Additionally, in the quarter we experienced expected headwinds primarily from the discontinuation of our contract brewing arrangements in the Americas at the end of 2024. This was all partially offset by strong price and mix growth across both business units, favorable timing of U.S. shipments and lower MG&A largely due to reduced incentive compensation and the timing of marketing spend.

As a result of the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected U.S. share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum, in particular the Midwest Premium pricing, we have adjusted our 2025 full year top and bottom-line guidance. However, we are reaffirming our annual underlying free cash flow guidance of $1.3 billion plus or minus 10% due to expected higher cash tax benefits and favorable working capital.
While navigating these macroeconomic pressures, we have continued to execute our Acceleration Plan and prudently invest behind our business and our brands to support long-term profitable growth. Collectively, we have held most of the share gains over the last three years for our core U.S. power brands – Coors Light, Miller Lite, and Coors Banquet. We remain committed to our premiumization plans: in EMEA&APAC behind the strength of Madri, in Canada with continued growth in Miller Lite and our flavor portfolio, and in the U.S. with Peroni and our partnership with Fever-Tree as well as continued focus against Blue Moon.”
Tracey Joubert, Chief Financial Officer Statement:

“We are pleased with the strength of our balance sheet and cash generation, which is particularly important during a challenging macroeconomic environment. It has allowed us to continue to execute our strategic growth initiatives as well as return $500 million to shareholders for the first half of the year through a competitive dividend and accelerated pace of share repurchases. We are committed to protecting and growing our underlying free cash flow while making prudent capital allocation decisions that support the long-term health of our business and brands and returning even more cash to shareholders.”