Molson Coors Beverage Company Reports 2025 Fourth Quarter and Full Year Results

Executive Summary

• Molson Coors reported a full‑year 2025 net loss of $2.14 B ($10.75 per diluted share) versus a profit of $1.12 B in 2024, driven primarily by a $3.65 B partial goodwill impairment and intangible asset impairments.
• Fourth‑quarter 2025 net sales fell 2.7% year‑over‑year to $2.66 B; underlying (Non‑GAAP) income before taxes declined 13.8% in constant currency.
• The company announced a 2026 outlook of flat sales, continued earnings decline, and a $2.0 B increase to its Class B share repurchase program, plus a new three‑year cost‑savings initiative targeting up to $450 M.

Key Details

• Full‑Year 2025 Financial Highlights
• Net sales: $11.14 B (‑4.2% reported, ‑4.8% constant currency).
• U.S. GAAP loss before taxes: $(2.518 B) vs. $1.503 B prior year – a $4.021 B decline.
• Underlying (Non‑GAAP) income before taxes: $1.386 B (‑14.7% constant currency).
• Net loss attributable to MCBC: $(2.140 B), or $10.75 per diluted share.

• Underlying diluted EPS: $5.42 (‑9.1%).

• Q4 2025 Highlights

• Net sales: $2.662 B (‑2.7% reported, ‑4.0% constant currency).
• U.S. GAAP income before taxes: $266.3 M (‑23.1% YoY).
• Underlying income before taxes: $296.8 M (‑13.8% constant currency).

• Net income: $238.3 M ($1.22 per diluted share).

• Segment Performance

• Americas: Q4 net sales down 5.0%; full‑year sales down 5.7%. Financial volume fell 8.5% YoY.

• EMEA & APAC: Q4 net sales up 6.1% (driven by favorable FX); full‑year sales up 1.8%.

• Cost Drivers

• COGS per hectoliter rose 8.1% (reported) due to premiumization, Midwest Premium aluminum surcharge (~$20 M), and material cost inflation.

• MG&A decreased 6.0% YoY, mainly from lower short‑term incentive compensation (~$30 M).

• Impairments & Restructuring

• Partial goodwill impairment of $3.645 B (Americas reporting unit) recorded in Q3 2025.
• Intangible asset impairments of $273.9 M (Blue Run Spirits, Staropramen).

• Americas restructuring charges of $28.7 M recognized in FY 2025; additional ~$35 M expected in FY 2026.

• Cash Flow & Liquidity

• Operating cash provided: $1.784 B (down $126 M YoY).
• Underlying free cash flow: $1.141 B (down $99 M YoY).

• Total debt: $6.300 B; cash & equivalents: $896.5 M → net debt $5.403 B, net‑debt/EBITDA ratio 2.33×.

• Shareholder Returns

• Dividends paid FY 2025: $376.3 M (vs. $369.2 M in 2024).
• Share repurchases FY 2025: $647.9 M (vs. $643.4 M in 2024).

• Board approved additional $2.0 B to Class B repurchase program, raising total authorization to $4.0 B; ~$2.6 B remains available.

• 2026 Outlook

• Net sales expected flat (±1% constant currency).
• Underlying income before taxes projected to decline 15‑18% YoY (constant currency).
• Underlying EPS expected down 11‑15%.

• Capital expenditures: $650 M ±5%; underlying free cash flow targeted at $1.1 B ±10%.

• Subsequent Events

• Feb 18 2026: Quarterly dividend declared $0.48 per share (payable Mar 20, record date Mar 6).
• Feb 18 2026: Three‑year cost‑savings program announced targeting up to $450 M in savings beginning 2026, building on the Americas Restructuring Plan.

Notable Quotes

• Rahul Goyal, President & CEO: “We navigated a tough year… our iconic brands resonate with consumers, and we are excited about our plans to unite people around our portfolio.”
• Tracey Joubert, CFO: “Our balance sheet remains strong… we expect commodity inflation to be a meaningful headwind in 2026 but do not believe it reflects longer‑term performance.”