Results
2Net sales decreased 3.3% reported and 3.6% in constant currency.
U.S. GA AP income b efore income taxes decreased 49.0% to $283.1 million.
Underlying (Non-GAAP) income before income taxes decreased 27.8% in constant currency to $383.2 million.
U.S. GAAP net income attributable to MCBC of $231.7 million , $1.23 earnings per share on a diluted basis.
Underlying (Non-GAAP) diluted earnings per share of $1.58 decreased 22.9%.
Management commentary
CEO AND CFO PERSPECTIVES
Rahul Goyal, President and Chief Executive Officer Statement: "We made progress on key aspects of the Horizon 2030 strategy in the second quarter as we navigated heightened global macroeconomic headwinds that affected both consumer behavior and key input costs in our business.
Coors Banquet and Peroni continue to perform well, and we're focused on improving our overall share performance in this competitive environment through ongoing, disciplined execution.
As we lean into emerging consumer tastes in flavor and beyond beer, we’re encouraged by Fever-Tree’s continued momentum after more than a year of partnership, and Monaco Cocktails delivered strong performance in its first quarter as part of Molson Coors.
Our approach for the balance of the year includes prudent investments designed to drive scale and efficiency across our global portfolio while executing against our cost savings plan to mitigate the impacts of persistent macroeconomic volatility."
Tracey Joubert, Chief Financial Officer Statement: "Our second quarter financial results largely matched our expectations as we managed through both expected and unanticipated headwinds that weighed on our top and bottom lines.
Further progress on our cost savings initiatives partially offset ongoing commodity cost inflation and the impact of lower financial volumes.
We are reaffirming our full-year guidance.Guidance reaffirmed
In the second quarter, we deployed capital toward value-added M&A in support of our Horizon 2030 strategy, enhanced financial flexibility through a series of debt refinancing transactions, and returned capital to shareholders through both dividends and share buybacks.
These actions reflect our disciplined approach to balancing our capital allocation priorities.”
CONSOLIDATED PERFORMANCE - SECOND QUARTER 2026
Results
(2) Net income (loss) attributable to MCBC.
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS SECOND QUARTER 2025 RESULTS)
Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2026, compared to June 30, 2025 (in percentages):
Net Sales Drivers (unaudited)
Financial volume(5.4)%
Price and sales mix1.8%
Currency0.3%
Total consolidated net sales(3.3)%
Net sales decreased 3.3%, driven by lower financial volume, partially offset by favorable price and sales mix and favorable foreign currency impacts.
Net sales decreased 3.6% in constant currency.
Financial volume decreased 5.4%, due to lower shipments in both the Americas and EMEA&APAC segments.
Brand volume decreased 4.8%, including a 5.3% decrease in the Americas segment and 3.4% decrease in the EMEA&APAC segment.
Price and sales mix favorably impacted net sales by 1.8%, primarily due to increased net pricing in the Americas segment and favorable sales mix as a result of premiumization in both the Americas and EMEA&APAC segments.
Net sales per hectoliter increased 2.3% reported and 2.0% on a constant currency basis.
Cost of goods sold ("COGS"): increased 6.0% on a reported basis, impacted by higher cost of goods sold per hectoliter and unfavorable foreign currency impacts, partially offset by lower financial volume.
7COGS per hectoliter: increased 12.1% on a reported basis, primarily due to the unfavorable changes in our unrealized mark-to-market commodity derivative positions of $98.0 million, cost inflation related to materials, logistics and manufacturing expenses including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, unfavorable mix driven by premiumization and volume deleverage, partially offset by cost savings initiatives.
Underlying (Non-GAAP) COGS per hectoliter: increased 6.3% in constant currency, primarily due to cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, unfavorable mix driven by premiumization and volume deleverage, partially offset by cost savings initiatives.
Marketing, general & administrative ("MG&A"): increased 3.7% on a reported basis, primarily due to higher general and administrative expenses as a result of cycling lower incentive compensation expense in the prior year and costs incurred related to our global modernization enterprise resource planning (“ERP”) system implementation project in the current year.
6Underlying (Non-GAAP) MG&A: increased 3.2% in constant currency.
8U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 49.0% on a reported basis, primarily due to unfavorable changes in our unrealized mark-to-market commodity derivative positions of $98.0 million, lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, higher MG&A and lower other non-operating income driven by unfavorable changes in the fair value of our investment in Fevertree Drinks plc of approximately $18 million, partially offset by increased net pricing in the Americas segment and cost savings initiatives.
Underlying (Non-GAAP) income (loss) before income taxes: Underlying (Non-GAAP) income before income taxes decreased 27.8% in constant currency, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing and higher MG&A, partially offset by increased net pricing in the Americas segment and cost savings initiatives.
Our U.S. GAAP effective tax rate and Underlying (Non-GAAP) effective tax rates decreased for the three months ended June 30, 2026 compared to the prior year, primarily due to the recognition of a higher discrete tax benefit.
Net income (loss) attributable to MCBC per diluted share: Net income attributable to MCBC per diluted share decreased 42.3%, primarily due to lower U.S. GAAP income before income taxes, partially offset by lower weighted-average diluted shares outstanding driven by share repurchases.
Underlying (Non-GAAP) net income (loss) attributable to MCBC per diluted share: Underlying net income attributable to MCBC per diluted share decreased 22.9%, primarily due to lower underlying income before income taxes, partially offset by lower weighted-average shares outstanding driven by share repurchases.
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS SECOND QUARTER 2025 RESULTS)
Americas Segment Overview
The following table highlights the Americas segment results for the three and six months ended June 30, 2026 compared to June 30, 2025:
Americas Segment Highlights (Versus Second Quarter 2025 Results)
Net Sales Drivers (unaudited)
Financial volume(6.4)%
Price and sales mix2.3%
Currency%
Total Americas net sales(4.1)%
Net sales decreased 4.1%, driven by lower financial volume, partially offset by favorable price and sales mix.
Financial and brand volume decreased 6.4% and 5.3%, respectively, primarily due to lower financial volume in the U.S. in our core and value brands as well as the unfavorable timing of shipments.
Price and sales mix favorably impacted net sales by 2.3%, primarily due to increased net pricing and favorable sales mix as a result of positive brand mix.
Net sales per hectoliter increased 2.5% on a reported and constant currency basis.
5U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 27.5% on a reported basis, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, higher MG&A, unfavorable changes in the fair value of our investment in Fevertree Drinks plc of approximately $18 million and higher other operating expenses, partially offset by increased net pricing and cost savings initiatives.
Higher MG&A was primarily driven by the cycling of lower incentive compensation expense in the prior year and costs incurred related to our global modernization ERP system implementation project in the current year.
Higher other operating expenses were primarily driven by restructuring activities and the accelerated amortization of a brand intangible as a result of a decision to exit a brand in our Americas segment.
4Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 22.6% in constant currency, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing and higher MG&A, partially offset by increased net pricing and cost savings.
Higher MG&A was primarily driven by the cycling of lower incentive compensation expense in the prior year and costs incurred related to our global modernization ERP system implementation project in the current year.
EMEA&APAC Segment Overview
The following table highlights the EMEA&APAC segment results for the three and six months ended June 30, 2026, compared to June 30, 2025:
EMEA&APAC Segment Highlights (Versus Second Quarter 2025 Results)
Net Sales Drivers (unaudited)
Financial volume(2.8)%
Price and sales mix0.8%
Currency1.6%
Total EMEA&APAC net sales(0.4)%
Net sales decreased 0.4% driven by lower financial volume, partially offset by favorable foreign currency impacts and favorable price and sales mix.
Net sales decreased 2.0% in constant currency.
Financial volume and brand volume decreased 2.8% and 3.4%, respectively, primarily due to lower volume in the U.K. driven by soft market demand and a heightened competitive landscape.
Price and sales mix favorably impacted net sales by 0.8%, primarily due to premiumization, partly offset by increased promotional activity.
Net sales per hectoliter increased 2.4% on a reported basis and 0.8% on a constant currency basis.
Foreign currency favorably impacted net sales by 1.6%, primarily due to the weakening of the U.S. Dollar ("USD") compared to the Hungarian Forint ("HUF") and Euro ("EUR").
U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 41.5% on a reported basis, primarily due to unfavorable mix driven by channel mix, lower financial volume and cost inflation related to materials, logistics and manufacturing expenses, partially offset by lower restructuring related charges.
Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 44.3% in constant currency, primarily due to unfavorable mix, driven by channel mix, lower financial volume and cost inflation related to materials, logistics and manufacturing expenses.
CASH FLOW AND LIQUIDITY HIGHLIGHTS
U.S. GAAP cash from operations: Net cash provided by operating activities of $820.4 million for the six months ended June 30, 2026, increased $192.8 million compared to $627.6 million in the prior year.
The increase was primarily due to favorable changes in working capital, partially offset by lower net income adjusted for non-cash items.
The favorable changes in working capital were primarily driven by the current year cash settlement of our forward starting interest rate swaps of $107.5 million, lower payments for prior year annual incentive compensation, the timing of payables and the cycling of a $60.6 million prior year payment as final resolution of the Keystone litigation case, partially offset by the timing of receivables.
3Un derlying (Non-GAAP) free cash flow: Cash provided of $513.8 million for the six months ended June 30, 2026, represented an increase of $220.3 million from the prior year, primarily due to an increase in net cash provided by operating activities and lower capital expenditures.
Corporate events
Debt: Total debt as of June 30, 2026 was $7,709.6 million and cash and cash equivalents totaled $2,128.1 million, resulting in net debt of $5,581.5 million and a net debt to underlying EBITDA ratio of 2.53 x .
As of June 30, 2025 , our net debt to underlying EBITDA ratio was 2.41 x.
Subsequent to June 30, 2026 , we repaid our $2.0 billion 3.0% senior notes using cash proceeds from the May 27, 2026 issuance of our $500 million senior notes due July 2031 and $1.0 billion senior notes due July 2036, as well as cash on hand.
Capital return
Dividends: We paid cash dividends of $183.7 million and $192.7 million for the six months ended June 30, 2026 and June 30, 2025, respectively.
Share Repurchase Program: We paid $211.0 million and $306.8 million, including brokerage commissions, for share repurchases for the six months ended June 30, 2026 and June 30, 2025, respectively.
Outlook
2026 OUTLOOK
We continue to expect to achieve the following targets for full year 2026 despite the inherent uncertainties that exist with inflationary commodity and logistics cost pressures and uncertainty in the global macroeconomic environment.Guidance reaffirmed
Net sales: flat, plus or minus 1% versus 2025 on a constant currency basis.
Underlying income (loss) before income taxes: decline in the range of 15% to 18% versus 2025 on a constant currency basis.
Underlying earnings per share: decline in the range of 11% to 15% versus 2025.
Capital expenditures: $650 million incurred, plus or minus 5%.
Underlying free cash flow: $1.1 billion, plus or minus 10%.
Underlying depreciation and amortization: $720 million, plus or minus 5%.
Consolidated net interest expense: $260 million, plus or minus 5%.
Underlying effective tax rate: in the range of 22% to 24%.
The Company's outlook includes the following considerations:
U.S. financial volumes are expected to slightly outpace brand volumes in the second half of the year.
1In COGS, commodity and logistics costs are expected to remain elevated compared to the prior year, with the impact of Midwest Premium expected to exceed approximately $130 million for the full year.
We expect a reduction in MG&A expenses in the second half of the year compared to the prior year as we carefully manage expenses with a targeted focus on investments that are expected to improve performance and generate the highest returns.
SUBSEQUENT EVENT
Capital return
On July 16, 2026, our Board declared a dividend of $0.48 per share, to be paid on September 18, 2026, to shareholders of Class A and Class B common stock of record on August 28, 2026.
Shareholders of exchangeable shares will receive the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.67 per share.
Corporate events
NOTES
Results
STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
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