TAP

Molson Coors’ Q2 results were shaped by external pressures that weighed on sales and profitability, with revenue meeting Wall Street’s expectations but operating margin declining significantly from the prior year. Management attributed the performance to a combination of soft market demand, heightened competition, and cost inflation, particularly from elevated commodity and fuel prices. CEO Rahul Goyal highlighted that while the U.S. beer industry faced challenges from shifting consumer behavior and geopolitical uncertainty, the company’s diversified brand portfolio helped mitigate some negative impacts. Goyal specifically cited the need for continued focus on both core and value brands, noting, “We have more work to do here, and we continue to assess how Coors Light and Miller Lite can amplify their authentic identities to drive greater impact.” Is now the time to buy TAP? Find out in our full research report (it’s free). Revenue: $3.10 billion vs analyst estimates of $3.09 billion (3.3% year-on-year decline, in line) Adjusted EPS: $1.58 vs analyst estimates of $1.51 (4.4% beat) Adjusted EBITDA: $624.6 million vs analyst estimates of $601.9 million (20.2% margin, 3.8% beat) Operating Margin: 10.7%, down from 18.2% in the same quarter last year Market Capitalization: $7.75 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Filippo Falorni (Citi) asked about the impact of the World Cup and expectations for category growth and share gains. CEO Rahul Goyal explained that while the World Cup provided localized boosts, overall category impact was limited, and he expects continued volatility but modest share improvements. Peter Grom (UBS) pressed for detail on parsing out the effects of higher gas prices versus structural shifts in beer demand. Goyal described the complexity of isolating such factors but noted that channel and pack size trends point to consumers making more value-driven choices. Christopher Carey (Wells Fargo) inquired about the evolution of cost inflation, especially for aluminum and logistics, and how it impacts guidance. CFO Tracey Joubert confirmed that Midwest Premium inflation remains elevated, with hedging and cost savings partially mitigating these pressures. Kaumil Gajrawala (Jefferies) questioned whether the company’s capital allocation—such as buybacks and cost cutting—was appropriate given volume challenges. Goyal and Joubert responded that the company remains focused on investing in brands and innovation, while also maintaining financial flexibility for M&A and returns. Robert Ottenstein (Evercore) sought more detail on Monaco’s integration and plans for national expansion. Goyal explained that the focus is first on maintaining strength in core states before expanding distribution more broadly, leveraging Monaco’s proven growth playbook. Looking forward, the StockStory team will be watching (1) how effectively Molson Coors executes cost-saving and supply chain initiatives to counter ongoing cost inflation, (2) early signs of market share improvements in key brands and segments, and (3) the pace of expansion for recent product launches and acquisitions, especially Monaco and new value segment innovations. Changes in consumer behavior and commodity price trends will also be key markers of progress. Molson Coors currently trades at $41.98, in line with $41.87 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Barbara Noverini President and Chief Executive Officer - Rahul Goyal Chief Financial Officer - Tracey Joubert Operator: Good morning, and welcome to the Molson Coors Beverage Company Second Quarter Fiscal Year 2026 Earnings Conference Call. Now I'll turn over to Barbara Noverini, Vice President of Investor Relations. Barbara Noverini: Thank you, operator. I'm pleased to introduce myself as Molson Coors' new Vice President of Investor Relations. Our earnings release and presentation materials are available on the Investor Relations section of our website. Today's discussion includes forward-looking statements within the meaning of U.S. federal securities laws. Please refer to our earnings release and our most recent SEC filings for important information regarding these statements, including risk factors as well as definitions of and reconciliations to any non-GAAP measures. Actual results may differ materially from our expectations, and we undertake no obligation to update forward-looking statements, except as required by applicable laws. Today, we'll focus our prepared remarks on our performance and outlook before opening the line for Q&A. [Operator Instructions] Any technical questions can be addressed with our Investor Relations team following the call. Unless otherwise indicated, all financial results are comparable prior year period and are in U.S. dollars. With the exception of earnings per share, all financial metrics are in constant currency when referencing percentage changes from the prior year period. Also, share data references are sourced from Circana in the U.S. unless otherwise indicated. Our remarks today will also reference underlying pretax income, which equates to underlying income before income taxes and underlying earnings per share, which equates to underlying diluted earnings per share as defined in our earnings release. With that, I will hand it over to Rahul. Rahul Goyal: Thank you, Barb. Welcome to Molson Coors, and hello to everyone on the call. Today, we're joining you from Golden, Colorado, the home of Coors. Now since the launch of our Horizon 2030 strategy in Q1, I've been visiting with employees, distributors and customers across our footprint to discuss our strategy, our early progress and any gaps that require quick action. Before I begin, let me take a moment to thank our dedicated employees here in Golden and across the globe for their commitment behind our Horizon 2030 strategy. Now let's start with the category. While the U.S. beer industry began the year on relative solid footing, the unanticipated energy and inflation shock associated with the conflict in Iran demonstrated how quickly global consumer sentiment and behavior can shift. In the second quarter, prices at the gas pump peaked in May, hitting certain U.S. regions, especially hard. At the same time, geopolitical uncertainty weighed on consumer confidence and spending behavior in EMEA and APAC. These external factors contributed to our volume performance across our markets in the second quarter. In addition, in EMEA and APAC, heightened promotional activity as well as channel mix further pressured bottom line results. Of course, in Q2, the industry came together to champion the World Cup as a premier occasion for socialization and celebrating with beer. That said, high industry anticipation increased competitive pressure everywhere. We also saw pockets of intense promotional activity in the U.K. and across Europe. As such, our share of the early World Cup opportunity, which only included the last 3 weeks of Q2 varied by geography and segment. Now how we respond to these and other external pressures remain firmly within our control. I'm confident that our diversified portfolio of well-loved brands, strong cash generation and disciplined balance sheet provides resilience and flexibility. These advantages enables us to address dynamic external conditions while focusing on the long-term strategic priorities that will grow our business. Based on this, we are reaffirming our fiscal 2026 guidance. So let's discuss our portfolio, starting with our core brands. Horizon 2030 aims to reinforce the relevance of these brands as the first choice for consumer occasions. We're not just sitting back and relying on existing scale and brand awareness to drive volumes. Enhancing our core brand share performance in today's competitive environment requires continued focus and execution. However, we have more work to do here, and we continue to assess how Coors Light and Miller Lite can amplify their authentic identities to drive greater impact with both core beer and new consumers in the U.S. This work takes time, and we are pursuing new campaigns, partnerships and ways to deploy our media investments with an occasion-based approach. In Canada, Coors Light largely performed in line with the industry and held its spot as Canada's #1 light beer. In the U.K., Carling experienced heightened competition in the quarter, and we've acted quickly with several actions designed to strengthen its position in the market. In EMEA and APAC, Ozujsko maintained its leading position in Croatia following its sponsorship of the Croatian Men's National Team in the World Cup. Meanwhile, Coors Banquet grew share and brand volume in Q2. We attribute the brand's ongoing success to its clear identity and consistent marketing. This includes our campaign for America's 250th called Icons of the American West, which helped contribute to growth across all U.S. regions in Q2, and it includes our latest partnership with the Yellowstone spin-off, Dutton Ranch, which has also become very popular. Turning to our Value brands. Our share trends improved, driven by the successful launch of Keystone Light Apple. We also saw share trends improve for Miller High Life. We've chosen to support growth in our Value brands by deploying modest but targeted levels of investment. Keystone Light Apple, or Kapple, is a great example of how we quickly responded to emerging flavor trends. We deployed an AI-generated social media campaign that generated buzz and resonated with the consumer seeking flavor at an enticing price point. Demand far outpaced our limited run production, so we are bringing it back in the fall. We also decided to bring back fan favorite Keystone Ice, a high ABV beer in the Value segment. In Above Premium beer, we saw mixed performance across our brands and geographies. In the U.S., we were pleased to see Peroni grow brand volumes by double digits, supported by targeted marketing investments earlier in the year. But the broader Blue Moon franchise remained under pressure in Q2. That said, we grew brand volumes for both Blue Moon non-alc and Peroni 0.0% in the quarter, underscoring our relevance in the small but growing non-alc beer category. While heightened promotional activity impacted Madri in the second quarter, Above Premium brand volumes showed segment growth in EMEA and APAC, driven by Staropramen, Miller and Blue Moon. In Canada, Miller Lite also continued its momentum as an Above Premium offering. We continue to gain scale in beyond beer, which is an important part of our journey as a beverage company. NSR growth for Monaco, Topo Chico Hard and Fever-Tree was partially offset by other brands in the segment like Simply Spiked. In Canada, Coors Slushie continued to show momentum in the RTD Seltzer segment, while in EMEA and APAC, Hidra continued to benefit from growing interest in functional beverages. Both Fever-Tree and Monaco are well on track to each contribute 1% to 2% to NSR, solid proof points of Horizon 2030's focus on both premiumization and portfolio transformation. We have now lapped the first full year of our partnership with Fever-Tree, and we are encouraged to see momentum continue to build. Following a national campaign that celebrated the ease of mixology at home, Fever-Tree delivered its highest quarter of sales in the U.S. since our partnership began. Our first full quarter of ownership of Atomic Brands also produced encouraging results. The integration of Monaco Cocktails has been going well, with its overall top and bottom line contributions tracking slightly ahead of our acquisition expectations. While still early days, this progress underscores the importance of bringing RTD spirits into our portfolio. We see Monaco as a clear example of how we can use M&A as a force multiplier in our transformation journey. This acquisition filled white spaces in our portfolio with a fast-growing Beverage segment. It also added an already scaled business, providing both growth and profitability on day 1. Currently, the majority of Monaco sales fall within 5 states, and most of that is in convenience. This is a strong example of our localized portfolio approach in action, and we see plenty of runway to expand into new geographies and channels. As discussed in Q1, the launch of Horizon 2030 also incorporated changes to our operating model, including quick actions and resource allocation at the local level. For example, in preparation for the World Cup, we invested incremental resources into host markets to drive memorable on-premise experiences. Our partnership with venues in key entertainment districts across Dallas, Philadelphia and Kansas City resulted in strong consumer engagement with our core and Above Premium brands. In addition, after reports that the Scottish football fans caused beer shortages in Boston, our Restock the Scots campaign swiftly responded by sending a Miller Lite barge to greet them in Miami. These examples show how we're leaning into and learning from targeted efforts that drive incremental results outside of national media spend. In total, while we're encouraged by our ability to make progress from a top line perspective, we need to stay responsive to the inflationary cost pressures and commodity price volatility that impacted our bottom line. In the near term, our robust cost savings program and other efficiency initiatives mitigate uncertainty within the global macroeconomic backdrop. We made progress in our previously announced 3-year $450 million cost savings actions by identifying areas where we believe we can drive greater efficiency. For example, we committed to various restructuring actions in EMEA, APAC, including the closure of a small brewery in the U.K. alongside other operational changes designed to modernize, simplify and unlock efficiencies within the region. We've also allocated a portion of our previously announced $650 million in global CapEx to modernize and expand our supply chain capabilities. Upgrades are already underway at our can plant, Rocky Mountain Metal Company. We're investing in new bulk receiving facilities as well as new and upgraded canning lines. Importantly, we believe investments like these that help to strengthen our supply chain will create efficiencies during a time when aluminum sourcing is top of mind. Finally, on capital allocation. We designed our approach to reinvest in our business and reward shareholders as we progress towards Horizon 2030 together. We are a highly cash-generative business, and we intend to deploy that cash on prudent growth initiatives, both organic and inorganic. We continue to believe that Molson Coors shares currently trade at a compelling value with an attractive dividend yield, and we have ample capacity left on our share repurchase authorization. We're halfway into our first year of the Horizon 2030 strategy. And one thing I'd emphasize is that no single event will suddenly change our trajectory. This process is about building portfolio strength brick by brick. We already have 2 of the strongest beer franchises in the industry with Miller and Coors. These brands have scale, generate cash and harbor deep consumer loyalty. Our job is to keep them relevant and competitive. That means showing up with strong investment during key beer occasions while working diligently and creatively to find new unexpected moments these brands can truly own. At the same time, we're scaling our next layer of expected growth. We're celebrating success in our core with Banquet, in Above Premium with Peroni, in Value with High Life and in beyond beer with Topo Chico, Monaco and Fever-Tree. None of these opportunities individually change our future. We know that. However, in aggregate, we expect these wins to compound over time. To that end, we're making early progress. With that, I'll turn it over to Tracey to discuss our financial performance and outlook. Tracey Joubert: Thank you, Rahul. In the second quarter, our results reflected the challenging category and cost environment we anticipated while also demonstrating the flexibility of our business model and the actions we are taking to manage through volatility. On a constant currency basis, consolidated net sales revenue was down 3.6%. Underlying pretax income was down 27.8% and underlying earnings per share decreased 22.9%. On an underlying basis, the quarter was shaped by a combination of external headwinds, timing impacts and controllable actions. While some drivers were impacted by phasing considerations, the broader picture is largely consistent with our expectations. The industry remains pressured. Our share performance is not yet where we wanted to be and cost inflation remains significant. At the same time, pricing, mix, cost savings, portfolio actions and disciplined capital allocation continue to support our plan. So let's get into the details. The U.S. beer industry was down minus 4.2% based on our internal estimates. U.S. domestic shipments declined by 7.3%, in line with our expectations of a 6% to 9% reduction in the second quarter. EMEA and APAC brand volume declined 3.4%, primarily driven by ongoing soft market demand and a heightened competitive landscape. The Midwest Premium remained elevated, adding approximately $40 million of year-on-year cost increase to second quarter cost of goods sold. Additionally, the elevation of fuel prices and freight market tightening increased cost inflation in the second quarter. MG&A was up 3.2%, largely due to cycling lower employee incentive costs in the prior year and additional investments in technology and capabilities. Taken together, these factors help explain the pressure on the quarter, but they do not change our priorities. We are focused on improving commercial execution where we have the greatest opportunity to influence share, protecting price realization and using our cost savings program to help offset inflationary pressure. Turning to the balance sheet. We believe this remains an area of strength and flexibility for the company. In the quarter, we successfully executed a series of public and private placement offerings that allowed us to refinance and retire a portion of our debt. These transactions enabled us to extend maturities and optimize our balance sheet at attractive rates in a rising interest rate environment, resulting in a net debt to underlying EBITDA ratio of 2.53x at the end of the quarter, bringing us close to meeting our stated goal of under 2.5x by year-end. As Rahul mentioned earlier, we remain committed to a balanced capital allocation framework with a relative emphasis on reinvestment, M&A, returning cash to shareholders and debt reduction varying quarter-to-quarter based on available opportunities and strategic priorities. This quarter, we chose to deploy capital in support of financial flexibility and M&A with the Atomic Brands acquisition, uses of cash that we believe strengthen the portfolio over the long run while preserving flexibility to continue investing behind our core priorities. We also paid $90 million in dividends and repurchased 1 million shares for $42 million, making further progress on our share repurchase authorization. We have repurchased 15.3% of our Class B shares outstanding since the plan was announced in October 2023. We continue to believe that Molson Coors shares trade at a compelling value and have $2.35 billion of our share repurchase authorization remaining. With that, let's discuss our outlook. As Rahul mentioned, we are reaffirming our 2026 guidance. We are doing so with a clear understanding of both the risks and the levers available to us in the second half. Before we discuss the details of our near-term outlook, I'll remind you that the impacts of the global macroeconomic environment are multifaceted and difficult to predict. And while we had included in our guidance our best estimate of some of these factors, external drivers may significantly impact our actual results, either up or down. Starting with the top line. U.S. shipments were in line with our expectations for quarterly volatility year-to-date, with relatively weaker shipments in Q2 following the stronger start to the year. The important point is that the shipment variance is primarily a timing and alignment issue rather than a change in our strategic direction. Our guidance assumes the shipment trends will slightly outpace brand volume trends in the second half of the year. Our full year guidance also includes 9 months of NSR and profit contribution from the integration of the Monaco portfolio. All other top line drivers remain largely unchanged. Our guidance includes the assumption that full year 2026 U.S. industry volume trends will be better than the minus 5% we experienced in 2025. As a reminder, in Q1, our internal estimates indicated that the industry improved to down minus 1.6%. But at that time, we acknowledged that economic and geopolitical uncertainty made predicting future quarters very difficult. The industry slowed in Q2 to down 4.2% based on our internal estimates, but this is still ahead of 2025 full year performance. Barring any further escalation of geopolitical events, our guidance still assumes industry improvement over 2025 levels. That said, we are not satisfied with our share performance. We continue to anticipate making progress as we improve execution in the channel, occasions and consumer segments where we believe we can have the greatest near-term impact. We continue to expect an annual price increase of 1% to 2% in the U.S., in line with Q2 performance as well as the average historical range and expect mix benefits from premiumization in both business units. Moving down the P&L. We expect COGS to continue to be negatively impacted by rising commodity costs through the second half of 2026. On Midwest Premium, we continue to expect elevated costs relative to 2025. As a reminder, we had anticipated the largest year-over-year increase in Midwest Premium to hit the P&L in Q2 2026. For the balance of the year, we expect Midwest Premium to continue to be meaningfully inflationary, but expect that our hedge coverage will mitigate a portion of this ongoing headwind. For the full year, we expect Midwest Premium inflation to be in excess of $130 million. We also expect elevated fuel costs relative to 2025, with tighter freight supply causing additional volatility in transportation costs. These are meaningful pressures, and we are not minimizing them. However, our hedging strategy, productivity initiatives and disciplined spending should provide partial offsets as we manage through the year. We now expect a reduction in MG&A expenses in the second half of the year compared to the prior year period. The objective is not simply to spend less, but to carefully manage expenses by redirecting investments towards the opportunities that we expect will improve performance and generate the most effective and highest returns. Our 3-year $450 million cost savings program provides an important lever to reduce reliance on industry recovery as we navigate category and macroeconomic volatility. We are also evaluating additional commercial and operational actions to address the headwinds facing the EMEA and APAC segments. In closing, we are realistic about the category and cost pressures we face, and we are not satisfied with every aspect of our current performance. At the same time, we believe we have meaningful strength, a strong global brand portfolio, a healthy balance sheet, strong cash generation, disciplined capital allocation and a cost savings program that gives us flexibility. We are focused on the levers within our control, sharper commercial execution, disciplined revenue management, more effective marketing investments, continued productivity and portfolio strengthening, as we manage near-term volatility and stay focused on long-term growth. With that, we will take your questions. Operator: [Operator Instructions] Our first question comes from Bonnie Herzog from Goldman Sachs. Unfortunately, we can't gain connection with Bonnie. Our next question comes from Filippo Falorni from Citi. Filippo Falorni: I was hoping you could give a little bit more color on the category growth expectations, including the beneficiary from the World Cup in June and July. And then any additional comment on the market share performance that you're expecting going forward in the balance of the year? Rahul Goyal: Filippo, thank you for the question. So maybe I'll address a couple of things. I think it was a little bit of what's happened and what's going to happen. So if you think about Q2, Tracey talked about the category based on internal estimates, so it was in the minus 4.2% range, Filippo. The World Cup, obviously, was a great occasion from a beer perspective, right? It was a great opportunity for us to showcase our brands, bring people together. But it probably did not have that big an impact across the entire category. If you think about on- and off-premise, what we did see from the World Cup is strong results in host cities and particularly on the on-premise. So if you think about on versus off, 14-ish percent versus off, we didn't see a massive impact of the World Cup across the entire country. So in those host cities, in the on-premise, it was a great opportunity to showcase our brands, bring consumers into the category and really have a great occasion to get our brands performing. So I would say that would be the World Cup assessment. I think your question then around the category. If you think about 2026 versus 2025, we still believe the category is going to be healthier than 2025. It is going to be -- continue to be a volatile year, you saw the changes in Q1 versus Q2 driven by macro issues, fuel prices, et cetera. So for us, it is a little bit of -- we'll keep close to where the category does in Q3 and Q4. But importantly is what are we going to do about it? And I think that's why your question around market share comes in. I go back to our portfolio. I mean we've got a pretty broad set of brands across different price points. And so that gives me confidence that going into the next quarter, we can continue to make progress. And if you look at Q2 versus Q1, we modestly gained share. If you look at our different parts of our portfolio, we made some good progress in our Value segment. We made some good progress in core in the Coors trademark, Above Premium beer and then also the beyond beer stuff. So we're making progress from a share perspective. We want to continue to make that progress going into Q3 from different parts of our portfolio. But the category volatility will react to how the category behaves. But probably, it'd still be better than what 2025 was. Operator: Our next question comes from Peter Grom from UBS. Peter Grom: I actually wanted to ask a follow-up to Filippo's question just on the category. And you noted the weaker performance in Q2, and this may be hard to do, but -- is there a way to kind of parse out the impact from higher gas prices, maybe some unfavorable weather versus maybe some shifts that may be more structural? And I just asked that in the context of I think people were hoping that the category would be stronger in 2Q, but obviously, you saw a meaningful deceleration. And then I guess, underpinning the back half, I mean, I understand that for the full year, you expect it to be better than the down 5%. But should we be expecting a continuation of kind of maybe what we saw in Q2 from a category standpoint? Rahul Goyal: Yes. I think -- Peter, I think, your question around the category, parsing out higher gas prices and impacts is, I would say, it's a tricky thing, right? Because maybe I'll explain it in a different way. So if you think about coming into this year, consumer confidence, a little bit of clarity in terms of consumer sentiment and how people were making decisions. I think you saw the category being healthier than Q1. As we get into Q2, I do think you saw different behavior from consumers, when things like gas prices, et cetera, are impacted. We saw that in pack data. We saw that in channel data. So there was definitely a pullback. I'd just go back to occasions, right? I mean the World Cup, again, was a great opportunity for bringing people together from a beer perspective. But maybe a little deeper into performance of the category. If you look at some of the channel-specific data, convenience and dollar continued to do well in Q2 versus food and grocery. Singles and small packs did well versus some of the other packs. So folks were making choices in a way differently in terms of their expendable income. Now on the other hand, I would call out the consumer that is continues to grow from a premiumization perspective, right? So Above Premium portfolio with Peroni and Fever-Tree continues to see growth. So that consumer is resilient, is healthy. The on-premise performed better than the off-premise overall for the category. And that's also a good sign in terms of consumer health in that regard. So hopefully, that gives you a sense of some of the levers and the drivers in the category for Q2. Your second part of the question is, I think that macro impact, oil prices, sentiment is probably going to be an important aspect as we think through H2, Q3 and Q4. But then I go back to our portfolio, right? Our portfolio is pretty broad. It is encompassing different price points, and it gives -- that gives me confidence and it gives us our ability to lean in differently, right, whether it's the Value segment with pricing, whether it's our Core segment with Coors Light, Miller Lite with price pack architecture, and then it's obviously leaning in with Above Premium beer and beyond beer. So the category will stay volatile, will stay, I would say, better than '25, but we got the different tools, different brands, different parts of our portfolio to lean in differently and continue to execute, right? And again, I think the previous question about, we got to keep showing share improvement that we've done now Q2 versus Q1, and we're going to keep leaning into that for the balance of the year. Operator: Our next question comes from Robert Ottenstein from Evercore. Robert Ottenstein: Great. And I missed the first part of the call, so excuse me if you already addressed this. Operator: Apologies, Robert, we lost connection. We'll now move on to our next question from Chris Carey from Wells Fargo. Christopher Carey: Hopefully, you don't lose connection with me. Rahul Goyal: Chris, we hear you loud and clear. Christopher Carey: Okay. All right. Wonderful. I wanted to ask about the evolution of the inflation expectations. I think, I heard, Tracey, you say $150 million, the slide say, $130 million for a Midwest Premium impact. But maybe just conceptually, inflation is the expectation now that it's running higher for the full year than the prior expectation? How did that impact your outlook for COGS per hectoliter? And then similarly or conversely, you're expecting, I think, maybe a slight decline in MG&A on the full year, confirming if that's correct? And where does that savings come from relative to prior expectation? And maybe importantly, I'm just starting to think about the path into 2027. Can you just perhaps give us any construct for how to think about your ability to be hedging some of the cost increases that you have seen going into next year? I think you had mentioned that you'll take maybe a pricing in line with similar levels in the fall. And so how do you really think about starting to get ahead of some of the cost curve as you go into 2027? I'd love any thoughts on that. So thanks for the balance of COGS inflation versus MG&A and how the path unfolds. Rahul Goyal: Chris, thank you. A number of different parts. So I think I captured all your pieces. So let me address that. And Tracey, please add enough after this. So if you look at this year, '26, obviously, when we laid out our '26 guidance and we shared our plans, we knew we were stepping into this year with a high inflated cost base in terms of Midwest Premium, LME, just the inflationary impact this year. So -- the way I would call out H1 is, I think the teams have done a good job of managing that within the framework that we had laid out, right? So between all the volatility of aluminum pricing and Midwest Premium, the teams have done a good job of managing our COGS per hectoliter. The one thing that we did see a little bit more elevated levels now is fuel costs and logistics costs, right, where logistics companies, transportation issues are proving to be a little bit more challenging. But I would put all of that under the bucket, Chris, focused on cost management, focused on our savings program and managing through that. So for the balance of the year, if you think about our COGS per hectoliter, we're probably in line with what we've said, and I'll let Tracey give you some specifics on that. But it's a combination of, yes, elevated levels, still a lot of volatility, but working through the levers we have. To address your question around MG&A, there's a number of factors that go into our MG&A for the balance of the year, right? So it is our investment in tools and technology capabilities, obviously, the cost savings programs that we announced and initiated both last year in the Americas and earlier this year in the EMEA and APAC, right? So that all starts playing out in the balance of the year and then making sure we have the right brand support in making sure we're investing behind our brands for the balance of the year. So for MG&A, just there's a number of things we put in place and obviously to be disciplined around our cost base. You probably saw that in the context of our EMEA business results. So that's how I would characterize the whole MG&A line. I know we don't talk a lot about '27, but it's an important as we execute on '26. We're obviously thinking through what does that inflationary landscape look like for '27 and going back from making sure we have the right brand investment and support for our portfolio. This is a competitive landscape, but we're going to lean in from a portfolio investment for '27. So more to come on '27. But hopefully, it gives you a sense on '26 MG&A. And Tracey, any more things to add on COGS? Tracey Joubert: Yes, just in terms of the Midwest Premium impact, Chris. So if you remember, our initial guidance assumes that the impact of Midwest Premium would be at least $125 million. Our latest estimate now is above $130 million, so 1-3-0. And so we do -- I mean, Midwest Premium has not come down. Commodity costs are going up. So we do assume that Midwest Premium and base aluminum will be elevated versus last year. And again, the Midwest Premium impact for Q2 for us was $40 million. So we do have hedges on for Midwest Premium that is going to help mitigate some of these increases. But as we've said before, it's very difficult, it's very expensive. It's not a liquid market. It's not a transparent market. So we also are using our cost savings program, which we've mentioned to help mitigate some of this inflation. But we do have good line of sight to the balance of the year. But again, continue to see elevated commodity costs, particularly the Midwest Premium. Operator: Our next question comes from Kaumil Gajrawala from Jefferies. Kaumil Gajrawala: I guess, a couple of questions. We hear about buybacks, dividend, balance sheet, cost cutting, many of these things, which are great and support the stock, but there's a -- there's an essential volume area to focus on. And while you've talked about it a bit, do you feel like that's sufficient? Like is now the right time to be cutting costs or buying back shares as opposed to maybe really stepping it up in a more meaningful way in your investment behind a series of brands, including really galvanizing some of the ones that are working like Peroni or Coors Banquet or figuring out how to be more relevant in other spaces where some of your brands aren't? Rahul Goyal: Yes, thank you for the question. Absolutely focused on the top line, Kaumil. I mean if you think about our plan, I mean, we are grounded on making sure our brands are the key drivers of our business in the future. So let me maybe explain how we think about our top line and our brands, right? So obviously, we are -- we have core brands in categories that are under pressure. So the way we think about it is obviously making sure we are supporting those brands well. So whether it's Coors Light, Miller Lite, things like Banquet and making sure we have the right level of marketing investment against them. We showed up for our big brands in a big way this year in live sports. So World Cup was one example. But for the balance of the year, we're going to show up in NFL football, college sports, MLB, soccer, et cetera. We're going to continue to lean in investment in things like music. So the investment in our core is super important, right? And because to your point, if the top line and our brands are not healthy, it doesn't really matter. So we will definitely continue to lean into that. If you think about our Value segment, this was an important area of our strategy because it is a big part. Consumers are looking for brands at different price points. And you saw a step change for us in Q2 versus Q1. And it was done in a very, very specific investment approach, right? So some of the work around Keystone Apple -- Keystone Light Apple, the work on innovation with Miller High Life, some of the new packaging on Miller High Life that is coming out later this year. So that part of the portfolio does require investment, but in a very different way than our big brands do. And then to your point, in Above Premium beer, we're leaning into Peroni in a big way. We still have work to do in Blue Moon, but we're going to definitely lean into Peroni and a number of other brands across different markets. Miller Lite in Canada is a great area for growth for us in the Above Premium beer. And in using the balance sheet for beyond Beer is definitely an important priority. You saw us step into that space with the Monaco acquisition earlier this year. And we're going to continue looking at ideas that make sense to augment our portfolio. But you've got to do that at scale, right? You have to do that at scale. It has to do something to move your top and bottom line. And that's why we feel Monaco is a great example of leaning in. So we're going to use our P&L and balance sheet to help facilitate our business from the top line perspective. Now while we're doing that, you're absolutely right, we are being disciplined in a highly inflationary landscape to be focused on cost and drive our cost savings program. We're using the balance sheet in a careful way to make sure we are doing the dividend and buyback. But again, leaning first in terms of investing in our business. Tracey Joubert: I mean, I think, the only thing that I'd add, Kaumil, is that we are a highly cash-generative business. And so when we look at our capital allocation priorities, because of our cash generation, we are able to invest in all of those, whether that be through M&A, whether that be through investing in our capabilities or investing behind our brands. We're able to do that. At the same time, buy back shares, which, again, we feel that our shares are a compelling investment, and we do have a program, which we'll continue to execute against. But quarter-by-quarter, those allocation priorities may differ. In Q2, we took the decision to put our money behind M&A with the Monaco acquisition as well as maintain flexibility in our balance sheet by paying down some of our debt. So again, we have optionality when it comes to our uses of our cash, and we are able to invest in all of those big buckets around capital allocation. Operator: Our next question comes from Drew Levine from JPMorgan. Drew Levine: Rahul, You talked to the beer industry freaking sequentially and expectation that it will probably remain volatile, but still thinking the year is better than 2025. But wondering if internally, your expectations for the industry have changed at all given what we've seen in the second quarter and so far in July? And also how you're thinking about the market share performance? You said you weren't happy with it. I think there was some expectation that it would improve relative to 1Q, which it did in the second quarter, but also for the balance of the year. But maybe where you're falling short of internal expectations there? And I guess, how are you thinking about the time line to sort of interventions playing out to better market share performance? Rahul Goyal: Yes. No, thank you, Drew. I think a couple of things. Thanks for your question. So first is on the category piece. Yes, I think to your point of, do we have a different point of view on what Q3 or Q4 might look like? I think broadly it is in line to what I said, right? I mean we knew there was going to be volatility in the category coming into this year. We also had an assumption of it's going to be better than 2025. How that volatility plays out, Drew, it is something we'll watch and see and react accordingly. So I'm not sure I can give you more perspective on the category performance. I think your share one is where I would say that's definitely an area that we focus a lot of time internally about, right? The category is something we all obviously lean into in terms of different occasions, but what we can do with our portfolio is important. And you heard that in my prepared remarks and Tracey's prepared remarks. We don't like where we are in terms of the improvement. Now we did have modest improvement in Q2 versus Q1 in terms of share, whether it was in value, whether it was selectively in our core. So we are showing progress. It's just we're not showing as much as we would like to. And so that is something we will continue to lean into. And that is a combination of making sure we have all the right commercial programs, right commercial actions. If you think about retail actions in terms of shelf space or placements or displays, features, we think we are pretty well positioned for the second half of the year. If you think about being competitive in the context of pricing in the U.S., we believe we are being highly competitive. And then if you think about supporting our brands in a big way and being clear in what these brands stand for, I think we're pretty excited about how our brands are showing up. Now if there's some course corrections needed or we need to lean in a little harder, we continue to do that, whether that's very local in particular cities and states or regions or whether that's at a national level. So market share is something is important. Again, I just maybe even flag out EMEA and APAC business, right? So Q2 was a highly competitive landscape. The World Cup played out in a different way in our U.K. business because, again, from a competition perspective. And we're taking the necessary actions. Our core brands there are some of the largest in the market in the category, and we're taking the necessary actions to make sure we are being reactive. So I understand your question around category, and we will manage through the -- any sort of volatility that has in the category. But internally, a lot of our focus is on making sure our brands show up in the right way, the different parts of our portfolio are showing up in the right way. And that's a combination of multiple levers on the commercial side, right? So retail pricing, innovation, that's an important, again, lever we have obviously pulled in parts of our portfolio and then the marketing investment to making sure our brands are well supported. So hopefully, that gives you a sense of just the thinking around the H2. Operator: Our next question comes from Bonnie Herzog from Goldman Sachs. Bonnie Herzog: I hope you can hear me. Rahul Goyal: Yes, we can hear you now. Bonnie Herzog: Sorry about that. Just maybe a little bit of a follow-up just on everything that was discussed this morning. As we move through the balance of the summer, I'd be curious to hear from you what you're seeing in terms of category demand and really consumer behavior? And are there certain initiatives or maybe innovations that you're leaning into to accelerate your trends? And then could you also update us on the shelf and cooler space that you maybe took in the spring resets? I'm just curious like what that ended up being. Rahul Goyal: Thank you, Bonnie. And so maybe I'll address the different parts of your question. So let me start with consumer behavior. So from a consumer perspective, we definitely saw a change in Q2 versus Q1, right? But when consumers in Q1, whether it was low-income consumers, Hispanic consumers, I would say, was different than 2025, and we saw that in channel data in terms of how consumers came in, in convenience, but also in grocery and in food, right? And we did see a change in Q2. In Q2, convenience and dollar channel was probably the -- had the most success in food and grocery did not. We saw that in pack size, right? Historically, folks, singles play out well in our category. We saw a little bit of a decline in large packs, but progress in growth in small packs. So again, that shows you the action consumers are taking in the context of being pressured, how they're using dollars, how they're putting their money where they want to look at brands. If you think about our portfolio, and this is why your question around innovation, this is why you see us leaning into in different ways. So the value portfolio was important to making sure we can get our consumers price points that they're looking for. You saw us lean into that with Keystone innovation. You saw we've announced we have more innovation coming in the second half of the year with Keystone Ice, which is a high ABV, more single-centric innovation. You saw that even in High Life. So the portfolio and how we react into that becomes important. The other part you'll see us is obviously things like Monaco. Monaco, as Tracey said, is a business that sells majority in singles. There's a balance of ABV as consumers think about value. So for us, that is a great stepping into where the consumer trends are, where the consumer may be pressured, but making sure we have the right portfolio around that. On our core brands with Coors Light and Miller Lite, making sure we have the right price pack architecture with the right formats in those particular channels. So those are the actions I know we are taking both from an innovation and trend perspective. Your question around shelf and cooler space. So we obviously do that in the spring reset, and we did gain shelf space for our brands. If you think about the broad category, yes, the category saw some -- losing some shelf space in things like craft, maybe in some particular flavor subcategories. But if you think about our business, in the majority of our brands, so the core brands, Coors Light, Miller Lite, Value, Above Premium parts of our portfolio, Peroni, et cetera, we did see incremental shelf space. We saw strong retail execution, whether it's in the cooler, we saw strong execution in terms of displays. Coors Light continues to be one of our biggest brands in the context of displays and features. So our brands are pretty well being executed in retail. I mean Coors Banquet continues to see distribution gains and strong execution in retail, Peroni does. So we feel pretty good about our retail execution, our retail presence, how our brands are showing up, again, example of Topo Chico. So we are definitely holding our share of space. We're definitely growing that in different parts of our portfolio. But overall, I think we feel pretty good going into, obviously, the summer and going into the balance of the year. And then I think I got most of your questions, Bonnie. Thank you for that. Operator: Our next question comes from Robert Ottenstein from Evercore. Robert Ottenstein: Great. I missed a good part of the call, so excuse me if you addressed this already. But I was wondering if you could maybe talk about Monaco in a little bit more depth, what surprised you, where the integration is? And more specifically, my understanding is that something like 80% or so of the sales are in a handful or so states. What is the game plan to make it fully national at this point? Rahul Goyal: Robert, no problem. I'm glad you got back into the queue, and we won't hold that against you of missing our call in the first half. I'm joking, Robert. No, we appreciate you being here. So if you think about Monaco, I mean, it's been a great add to our portfolio. If you think about the criteria we laid out, we want to add 1% to 2% brands that give us scale. It's an important thing for us. It's an important thing for our distributor network. So your questions of we closed the deal in Q2. We've obviously been focused on integrating it, which is part of making sure it moves to our network. So I would say we're making good progress on that. You're absolutely right. The volume is concentrated in about 5 states. And it is concentrated in channels, in convenience with singles, right? So it really gives us the opportunity for runway in the future. The way we are approaching it is, one, we want to make sure we first execute in those states by staying and not dropping a case, right? So being disciplined in terms of the model they have. Just as a reminder, we moved about 80 people from the Monaco team also because what we don't want to do is lose the feet on the street, the execution ability. So job one is to make sure we keep and grow what we have today in those key states. We will look at channels in the states that we already have some strong presence in. Then in the other states, we continue to look at following a similar playbook that Monaco has is how do we make sure we win with convenience? How do we make sure we win singles? It goes to some of the other questions that folks had in terms of how consumers are leaning into this category and how do we make sure we're being competitive in that. So our goal is to obviously take this business national. We will do that in a measured way, Robert. We want to be careful in these integrations that we don't get in a way ahead of ourselves. So job one, transition to our network, make sure we are executing in the current state, start thinking about multiple channels in the context of the states where there is a lot of strength for the brand. And then how do we make sure we expand into other states with the playbook that Monaco has executed over the last 12 and 15 years. So we're pretty happy about this. We are -- I think we said this in our prepared remarks, we're tracking slightly ahead of what the anticipation was in both top and bottom line. So it has been a good add to not just our business, but also to our network, right? So it's a good point of conversation with our distributor network, with our retail. It creates some excitement. And then yes, we're going to keep leaning into the playbook that they had, but also expanding it with our, call it, infrastructure and our capabilities. Operator: Our next question is from Steve Powers at DB. Stephen Robert Powers: I wanted to actually ask about EMEA and APAC and the outlook for the back half for improvement. I guess the question I'm grappling with is how much of the expected improvement that you're calling for in the back half comes from identified cost savings and restructuring benefits kind of already in hand, already in motion in your control versus an assumption that demand or promotional intensity or volume trends improve in the back half? And just if it's the latter, just your confidence around that. Rahul Goyal: Yes, fair question, Steve. Thank you for that. So if you think about EMEA and APAC, obviously, I would say, a little bit of a tougher start to -- in H1 this year. So a couple of things. Let me address your top line piece first and then your question of confidence in the balance of the bottom line. So we definitely have taken some more actions in terms of -- given the competitive context in EMEA and APAC. If you think about our business there, Central European business has been robust and strong. I mean, obviously, some headwinds, but the teams have done a good job of navigating through that. I would call out U.K. probably is where it has been a pressure from a consumer perspective, but then also from a competitive perspective. If you look at our portfolio there, I would say we definitely have some strong brands, right? Our core is some of the biggest brands in the U.K. and we've leaned into that with respect to innovation. So we launched Carling Black Label a few months ago. We're taking the necessary actions on Carling for the balance of the year. So we feel good about the actions we're taking in premiumization. Madri, obviously, is a big brand, and the team has done a great job of scaling it. It is, again, in a competitive context, but we have innovation already in market with 0.0 with Madri Limon and other parts of our Above Premium brands are doing well in the U.K. with Staropramen, Miller and Blue Moon. So from a portfolio perspective, a number of these actions are already in place, in motion and should give us a higher degree of execution in the second half of the year in terms of the top line. If you think about the bottom line and the cost savings initiatives, we did action a number of those earlier this year. I think we announced those. It just takes a little longer in Europe. But those are the ones that are going to give us the benefit in the second half of the year, right? Those are now in place. Those actions have been taken, and that is going to play out. The only thing -- other thing I would remind you is just timing in EMEA and APAC. U.K., as you know, November, December is a big season for us, right? I mean trading and the Christmas time plays an important role in the beer category. So for us, there is an element of timing also from a trading perspective in the U.K. So yes, it's been a little bit of, I would say, challenging start in '26 for EMEA and APAC, but I know our teams are -- we've got the right commercial plans. We've taken being disciplined on the cost side and taking the necessary actions to make sure we can really execute against our ambitions in EMEA and APAC for the balance of the year. Operator: There are no further questions. This now concludes today's Q&A session and today's call. I'd like to thank everyone for joining, and you may now disconnect your lines. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Molson Coors (TAP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Molson Coors Beverage Company? Here are five stocks we like better. Molson Coors reaffirmed its fiscal 2026 outlook despite a weak second quarter: constant-currency net sales fell 3.6%, underlying pretax income declined 27.8%, and underlying EPS dropped 22.9% year over year. U.S. beer demand remained pressured, with industry volumes estimated down 4.2% and domestic shipments down 7.3% as consumers shifted toward convenience stores, value retailers, singles and smaller packs. Brand performance was mixed, with gains for Coors Banquet, Keystone Light, Peroni and Monaco partly offset by weakness at Blue Moon, Simply Spiked and Carling. Inflation and operating costs remain significant challenges: Midwest premium inflation is now expected to exceed $130 million for the year. The company is pursuing a $450 million cost-savings program while continuing debt reduction, dividends and share repurchases. Anheuser-Busch Stock Jumps as Volume Growth Signals Turnaround Molson Coors Beverage (NYSE:TAP) reaffirmed its fiscal 2026 outlook despite a weaker second quarter marked by declining sales, lower profit and persistent inflationary pressures, as the brewer cited volatile consumer behavior and intense competition in several markets. On a constant-currency basis, second-quarter net sales revenue fell 3.6% from the prior year, underlying pretax income declined 27.8%, and underlying earnings per share decreased 22.9%, Chief Financial Officer Tracey Joubert said during the company’s earnings call. → No Hangover: Revisiting Microsoft One Week After Earnings Market Whispers: Is Molson Coors the Next Big Beverage Buyout? “The industry remains pressured. Our share performance is not yet where we want it to be, and cost inflation remains significant,” Joubert said. Still, she said pricing, mix, cost savings, portfolio actions and capital allocation continued to support the company’s plan. Molson Coors said the U.S. beer industry declined an estimated 4.2% in the second quarter, following a comparatively stronger first quarter. U.S. domestic shipments fell 7.3%, within the company’s expected range of a 6% to 9% decline. → MarketBeat Week in Review – 08/03 - 08/07 Beer’s Big Comeback? 2 Stocks Poised to Benefit in 2026 President and Chief Executive Officer Rahul Goyal attributed some of the quarter’s pressure to higher gasoline prices and broader uncertainty related to the conflict in Iran, which affected consumer confidence and spending. He said demand patterns shifted toward convenience and dollar stores, as well as singles and smaller packs, while food and grocery channels were weaker. “Folks were making choices in a way differently in terms of their expendable income,” Goyal said. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The World Cup created opportunities for beer consumption, particularly in on-premise locations in host cities, but did not materially lift demand across the entire U.S. market, according to Goyal. The company invested in local activations in cities including Dallas, Philadelphia and Kansas City. Management maintained its view that full-year U.S. industry volume trends will be better than the 5% decline reported for 2025, assuming no further escalation in geopolitical events. However, executives cautioned that the category is likely to remain volatile through the second half. Goyal said Molson Coors saw improving share trends from the first quarter, though the company remains dissatisfied with its overall share performance. The company reported gains in portions of its value, core, above-premium and beyond-beer portfolio. Core brands: Coors Light held its position as Canada’s top light beer, while Coors Banquet grew U.S. share and brand volume. Carling faced stronger competition in the United Kingdom. Value brands: Share trends improved for Keystone Light and Miller High Life. Demand for the limited-release Keystone Light Apple exceeded production, and the company plans to return the product in the fall. Molson Coors also plans to bring back Keystone Ice. Above-premium beer: Peroni’s U.S. brand volumes rose by double digits, while the broader Blue Moon franchise remained under pressure. Blue Moon Non-Alcoholic and Peroni 0.0 both grew brand volume. Beyond beer: Net sales revenue growth from Monaco, Topo Chico Hard and Fever-Tree was partly offset by declines in other products, including Simply Spiked. The company said its first full quarter of ownership of Atomic Brands, which includes Monaco Cocktails, tracked slightly ahead of acquisition expectations for both top- and bottom-line contribution. Monaco sales are concentrated in five states and primarily in convenience stores, and Goyal said the company intends to expand the brand nationally in a measured way while preserving its existing execution model. Fever-Tree posted its highest U.S. quarterly sales since the partnership began, following a national campaign centered on at-home mixology, management said. Higher aluminum-related costs, fuel prices and freight expenses weighed on the quarter. Joubert said the Midwest premium added about $40 million in year-over-year costs to second-quarter cost of goods sold. For the full year, the company now expects Midwest premium inflation to exceed $130 million, compared with its initial expectation of at least $125 million. The company expects hedging to offset part of the ongoing pressure, though Joubert described the market as difficult and expensive to hedge. MG&A expenses rose 3.2% in the quarter, largely because the company lapped lower employee incentive costs in the prior year and increased investment in technology and capabilities. Molson Coors now expects MG&A expenses to decline in the second half from the prior-year period as it redirects spending toward higher-return opportunities and realizes benefits from its cost program. The company is pursuing a previously announced three-year, $450 million cost-savings program. Actions include restructuring in EMEA and APAC, including the closure of a small U.K. brewery and other operational changes. Molson Coors is also investing part of its previously announced $650 million global capital-expenditure plan in supply-chain upgrades, including work at its Rocky Mountain Metal Container can plant. During the quarter, Molson Coors refinanced and retired a portion of its debt through public and private placement offerings. Its net debt-to-underlying EBITDA ratio was 2.53 times at quarter-end, nearing its target of less than 2.5 times by year-end. The company paid $90 million in dividends and repurchased 1 million shares for $42 million during the quarter. Since its repurchase plan was announced in October 2023, Molson Coors has bought back 15.3% of its Class B shares outstanding and had $2.35 billion remaining under its authorization. Management said it will continue balancing investments in brands and capabilities, acquisitions, shareholder returns and debt reduction. Goyal said the company’s Horizon 2030 strategy is intended to build growth gradually across its core beer brands, premium offerings and beyond-beer portfolio rather than relying on any single initiative to change its trajectory. Molson Coors Beverage Company is a leading multinational brewing and beverage enterprise formed through the 2005 merger of Canada's Molson and the United States' Coors. The company develops, markets and distributes an array of alcoholic and non-alcoholic beverages, focusing primarily on beer and ready-to-drink products. Its portfolio spans flagship brands such as Coors Light, Molson Canadian and Miller Lite, alongside craft-style offerings like Blue Moon and global imports including Carling and Staropramen. In addition to its core beer business, Molson Coors has expanded into adjacent categories to capture evolving consumer tastes. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Molson Coors Beverage Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Molson Coors Beverage Company TAP posted second-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. Meanwhile, earnings and revenues declined year over year.The company’s adjusted earnings of $1.58 per share were down 22.9% year over year but beat the Zacks Consensus Estimate of $1.51. The bottom line surpassed the consensus mark by 4.6%. Molson Coors Beverage Company price-consensus-eps-surprise-chart | Molson Coors Beverage Company Quote Net sales declined 3.3% year over year to $3097 million but topped the consensus estimate of $3089 million by 0.3%. Lower financial volumes pressured results, while favorable pricing and sales mix offered some support. Net sales declined 3.6% on a constant currency basis. Financial volume fell 5.4% year over year, reflecting lower shipments in both the Americas and EMEA & APAC. Brand volume decreased 4.8%, including declines of 5.3% in the Americas and 3.4% in EMEA & APAC.Price and sales mix contributed 1.8% to net sales, mainly on increased net pricing in the Americas and favorable premiumization-led mix across both business units. Net sales per hectoliter (hl) increased 2.3% on a reported basis and 2.0% in constant currency.Gross profit declined 17.1% year over year to $1.06 billion, and the gross margin contracted 570 basis points (bps) to 34.3% in the quarter.Marketing, general and administrative expenses (MG&A) rose 3.7% to $718.5 million. The increase reflected the comparison with lower prior-year incentive compensation and costs related to the company's global modernization ERP project. On an underlying basis, MG&A increased 3.2% in constant currency.Underlying earnings before taxes (EBT) decreased 27.8% year over year in constant currency to $383.2 million, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including an approximately $40 million unfavorable impact from Midwest Premium pricing, and higher MG&A expenses. These headwinds were partly offset by increased net pricing in the Americas segment and cost-savings initiatives. Americas: Net sales in the segment declined 4.1% year over year to $2402 million on a reported basis and on a constant-currency basis. The decline was due to lower financial volume, partially offset by favorable price and sales mix. The Zacks Consensus Estimate for the segment’s sales was pegged at $2407 million.Americas financial volume declined 6.4%, mainly reflecting lower U.S. volumes in core and value brands and unfavorable shipment timing.Price and sales mix benefited sales by 2.3%, supported by higher net pricing and favorable brand mix. Net sales per hectoliter rose 2.5% on a reported and constant currency basis.EMEA & APAC: The segment’s net sales slipped 0.4% year over year to $700.2 million, as lower financial volumes more than offset favorable currency movements and improved price and sales mix. On a constant-currency basis, net sales declined 2%. The Zacks Consensus Estimate for the segment’s sales was pegged at $708 million.Financial volume decreased 2.8%, and brand volume fell 3.4%, mainly reflecting weaker U.K. demand and an intensified competitive environment. Price and sales mix provided a 0.8% benefit, driven by premiumization but partly offset by increased promotional activity. Underlying pretax income dropped 44.3% in constant currency to $41 million, hurt by unfavorable channel mix, lower volumes and cost inflation. Management highlighted continued strength in Coors Banquet and Peroni, while Fever-Tree maintained momentum. Monaco Cocktails also performed strongly in its first quarter under Molson Coors, with its top- and bottom-line contributions tracking slightly ahead of acquisition expectations.The company also saw improved value-brand share trends following the launch of Keystone Light Apple and better performance from Miller High Life. Management plans to bring Keystone Light Apple back in the fall and is also relaunching Keystone Ice as it targets consumers seeking value and higher-alcohol offerings. Molson Coors ended the second quarter with $2.13 billion in cash and $7.71 billion in total debt, resulting in net debt of $5.58 billion. Its net debt-to-underlying EBITDA ratio was 2.53 times. The company paid $211 million for share repurchases during the first half.Net cash provided by operating activities totaled $820.4 million for the first six months of 2026, up from $627.6 million a year earlier. Underlying free cash flow improved $220.3 million to $513.8 million, helped by stronger operating cash flow and lower capital expenditures. TAP reaffirmed its 2026 guidance despite continued commodity, logistics and macroeconomic pressures. Molson Coors expects net sales to be broadly flat on a constant-currency basis, within a range of plus or minus 1% compared with 2025. Underlying EBT is anticipated to decline in the range of 15-18%, while underlying EPS is anticipated to decrease 11-15%.It expects underlying depreciation and amortization to be $720 million, plus or minus 5%. The company forecasts an underlying effective tax rate of 22-24% for 2026. Underlying net interest expenses are anticipated to be $260 million (plus or minus 5%).TAP estimates a capital expenditure of $650 million (plus or minus 5%) for 2026. The underlying free cash flow is expected to be $1.1 billion, plus or minus 10%. Management expects Midwest Premium inflation to exceed $130 million for the full year and anticipates lower MG&A expenses in the second half as it continues cost-management initiatives.Shares of this Zacks Rank #4 (Sell) company have lost 16.7% in the past six months against the industry’s 2.7% growth. Image Source: Zacks Investment Research The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed second-quarter volume pressure to an unanticipated energy and inflation shock following conflict in Iran, which spiked gas prices and dampened consumer sentiment. Performance in EMEA and APAC was hindered by geopolitical uncertainty and heightened promotional intensity, particularly in the U.K. market during the early stages of the World Cup. The company is pivoting toward an occasion-based media approach for core brands Coors Light and Miller Lite to better resonate with both legacy and new consumer segments. Strategic growth is being driven by 'brick-by-brick' portfolio diversification, with Coors Banquet and Peroni showing resilience through clear brand identities and targeted marketing. The Value segment saw improved share trends via rapid innovation, such as Keystone Light Apple, which utilized AI-generated social campaigns to capture emerging flavor trends. The integration of Atomic Brands (Monaco Cocktails) is serving as a 'force multiplier,' providing immediate scale and profitability in the high-growth RTD spirits category. Operational efficiency is being prioritized through a $450 million cost savings program, including the closure of a U.K. brewery to modernize the EMEA supply chain. Fiscal 2026 guidance is reaffirmed based on the assumption that U.S. industry volume trends will improve relative to the minus 5% decline experienced in 2025. The company expects U.S. shipment trends to slightly outpace brand volume trends in the second half of the year, correcting for first-half timing and alignment issues. Financial projections include a 1% to 2% annual price increase in the U.S., consistent with historical averages and current inflationary mitigation strategies. Management anticipates continued COGS pressure from elevated Midwest Premium aluminum costs, expected to exceed $130 million for the full year, partially offset by hedging. The strategy for Monaco Cocktails involves a measured national expansion, initially focusing on maintaining its strong convenience-channel presence in five core states. Midwest Premium costs added approximately $40 million in year-over-year COGS increases during Q2, representing the peak inflationary impact for the fiscal year. Rising fuel prices and a tightening freight market are cited as emerging headwinds that may increase transportation cost volatility in the second half. The company has repurchased 15.3% of Class B shares since October 2023, signaling management's view that the stock remains undervalued relative to its cash generation. A reduction in MG&A expenses is planned for the second half of 2026 as the company redirects investments toward high-return technology and commercial capabilities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the World Cup drove strong engagement in host cities and on-premise channels but had a limited impact on the broader national category. The company achieved modest share gains in Q2 versus Q1, led by the Value segment and the Coors trademark. A distinct shift was observed in Q2 where convenience and dollar channels outperformed food and grocery as consumers managed expendable income. Demand for small packs and singles increased, while the Above Premium consumer remained resilient, supporting growth in Peroni and Fever-Tree. Management defended the balanced capital allocation, stating that high cash generation allows for simultaneous investment in M&A, brand marketing, and shareholder returns. The Monaco acquisition was highlighted as a strategic use of the balance sheet to fill 'white spaces' in the portfolio with a scaled, profitable business. Improvement is expected to stem from cost-restructuring actions already in motion and a heavy trading season in the U.K. during November and December. Innovation launches, including Carling Black Label and Madri 0.0, are intended to counter high promotional intensity in the European market.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Molson Coors Beverage Co (NYSE:TAP) reaffirmed its fiscal 2026 guidance despite external headwinds, demonstrating confidence in its strategic plan and ability to manage volatility. The company is making progress on its Horizon 2030 strategy, with successful brand initiatives like Coors Banquet growing share and volume, and Peroni achieving double-digit brand volume growth in the U.S. The integration of Monaco cocktails is tracking ahead of expectations, contributing positively to both top and bottom line, and providing a scalable platform for expansion in the fast-growing RTD spirits segment. Molson Coors Beverage Co (NYSE:TAP) continues to execute a robust cost savings program, with $450 million in targeted savings, and has taken restructuring actions in EMEA/APAC to drive efficiency and mitigate inflationary pressures. The company maintains a strong balance sheet with a net debt-to-EBITDA ratio of 2.53x, close to its sub-2.5x target, and has ample share repurchase capacity, returning $132 million to shareholders in Q2. Consolidated net sales revenue declined 3.6% and underlying pre-tax income fell 27.8% in Q2, reflecting significant pressure from category softness and cost inflation. The U.S. beer industry weakened to -4.2% in Q2, and Molson Coors Beverage Co (NYSE:TAP) experienced a 7.3% decline in domestic shipments, with management admitting share performance is not yet where they want it to be. Midwest premium aluminum costs are expected to exceed $130 million for the full year, with Q2 alone adding $14 million in year-over-year COGS increases, and fuel and freight costs are also elevated. EMEA and APAC brand volumes declined 3.4% due to soft demand and intense promotional activity, particularly in the UK, requiring additional actions to address competitive pressures. The company faces ongoing challenges in its above-premium segment, with the Blue Moon franchise remaining under pressure, and heightened promotional activity impacting brands like Madri in the quarter. Warning! GuruFocus has detected 2 Warning Sign with TAP. Is TAP fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the category growth expectations, including the benefit from the World Cup in June and July, and any additional comments on market share performance expectations for the rest of the year?A: Raul (CEO): The U.S. beer industry was down 4.2% in Q2 based on internal estimates. The World Cup was a great occasion for the category, but its impact was concentrated in host cities and the on-premise channel, which saw a 14% uplift versus off-premise. We still believe the category will be healthier in 2026 than 2025, but it will remain volatile. On market share, we modestly gained share in Q2 versus Q1, with progress in our value segment, the Coors trademark, and above premium beer. We aim to continue this progress in Q3 by leveraging our diversified portfolio across different price points. Q: Is there a way to parse out the impact from higher gas prices and unfavorable weather versus more structural shifts in the category? Should we expect a continuation of Q2's category performance in the back half?A: Raul (CEO): It's tricky to parse out individual factors, but we saw clear consumer behavior changes in Q2. Convenience and dollar channels performed well versus food and grocery, and singles and small packs outperformed larger packs, indicating consumers are making different choices with their expendable income. However, the premiumization consumer remains resilient, with above premium brands like Peroni and Fever-Tree growing. The on-premise also performed better than off-premise. For the back half, macro impacts like oil prices and sentiment will be important, but our broad portfolio gives us the tools to lean in differently across value, core, and above premium segments. Q: Can you discuss the evolution of inflation expectations, specifically the Midwest premium impact, and how this affects your COGS per hectoliter outlook? Also, can you confirm the expected decline in MG&A and provide a construct for how you're thinking about hedging cost increases into 2027?A: Tracy (CFO): Our initial guidance assumed a Midwest premium impact of at least $125 million, but our latest estimate is now above $130 million. Commodity costs are going up, and we expect Midwest premium and base aluminum to remain elevated versus last year. The Q2 impact was $40 million. We have hedges in place to mitigate some of these increases, but it's a difficult and illiquid market. Our cost savings program is also helping to offset inflation. On MG&A, we expect a reduction in the second half of the year compared to the prior year, driven by our cost savings programs and disciplined spending, while still investing in technology and brand support. Q: We hear about buybacks, dividends, and cost cutting, but is now the right time to be cutting costs or buying back shares as opposed to meaningfully stepping up investment behind brands that are working like Peroni or Coors Banquet?A: Raul (CEO): We are absolutely focused on the top-line. We are supporting our core brands with significant marketing investment in live sports, including the World Cup, NFL, and MLB. In our value segment, we've seen a step change in Q2 versus Q1 with targeted investments in innovations like Keystone Light Apple and Miller High Life. In above premium, we're leaning into Peroni and Miller Lite in Canada. We're also using the balance sheet for Beyond Beer, with the Monaco acquisition being a prime example. We are being disciplined on costs in a highly inflationary landscape, but our first priority is investing in our business. Tracy (CFO): We are a highly cash-generative business, so we can invest in all these areas while also buying back shares. In Q2, we chose to prioritize M&A and balance sheet flexibility, but we have optionality across all capital allocation buckets. Q: Have your internal expectations for the industry changed given the Q2 slowdown, and how are you thinking about the timeline for interventions to improve market share performance?A: Raul (CEO): Our view on the category is broadly in line with what we said: it will be volatile but better than 2025. On market share, we are not satisfied with our performance, though we did show modest improvement in Q2 versus Q1. We are focused on commercial execution, including retail actions like shelf space and displays, competitive pricing, and clear brand marketing. We are well-positioned for the second half, but we will continue to make corrections and lean in harder where needed, whether at a local or national level. In EMEA/APAC, we are taking necessary actions to address the highly competitive landscape, particularly in the UK. Q: What are you seeing in terms of category demand and consumer behavior as we move through the summer, and what initiatives or innovations are you leaning into to accelerate trends? Also, can you update us on the shelf and cooler space you took in the spring resets?A: Raul (CEO): Consumer behavior changed in Q2 versus Q1. Convenience and dollar channels had the most success, while food and grocery did not. We saw growth in small packs and singles, but a decline in large packs, reflecting consumer pressure. We are leaning into innovation to address this, such as Keystone Light Apple and the upcoming Keystone Ice, a high ABV value offering. On shelf space, we gained space for the majority of our brands in the spring resets, including core brands like Coors Light and Miller Lite, and above premium brands like Peroni. Coors Banquet continues to see distribution gains. We feel good about our retail execution and presence heading into the summer. Q: Can you talk about Monaco in more depth, what has surprised you, where the integration stands, and what is the game plan to make it fully national given that 80% of sales are in a handful of states?A: Raul (CEO): Monaco has been a great addition to our portfolio. We closed the deal in Q2 and have been focused on integrating it into our network. The volume is concentrated in about five states and primarily in the convenience channel with singles, which provides significant runway for growth. Our approach is to first execute flawlessly in those existing states, then expand into multiple channels within those states, and finally expand into other states using the playbook Monaco has executed over the last 12-15 years. We moved about 80 people from the Monaco team to maintain execution ability. The business is tracking slightly ahead of our expectations on both top and bottom line. Q: How much of the expected improvement in EMEA and APAC in the back half comes from cost savings and restructuring benefits already in motion versus an assumption that demand or promotional intensity improves? For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Molson Coors Brewing (TAP) reported revenue of $3.1 billion, down 3.3% over the same period last year. EPS came in at $1.58, compared to $2.05 in the year-ago quarter. The reported revenue represents a surprise of +0.24% over the Zacks Consensus Estimate of $3.09 billion. With the consensus EPS estimate being $1.51, the EPS surprise was +4.64%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Molson Coors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Brand Volume - Consolidated: 19.63 million versus the three-analyst average estimate of 19.49 million. Financial Volumes (STWs) - Americas: 14.33 million compared to the 14.09 million average estimate based on two analysts. Financial Volumes (STWs) - EMEA & APAC: 5.41 million compared to the 5.35 million average estimate based on two analysts. Net Sales- Americas: $2.4 billion versus $2.41 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.1% change. Net Sales- Unallocated & Eliminations: $-6.7 million versus $-6.93 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -15.2% change. Net Sales- EMEA&APAC: $700.8 million compared to the $707.56 million average estimate based on three analysts. The reported number represents a change of -0.4% year over year. View all Key Company Metrics for Molson Coors here>>> Shares of Molson Coors have returned +7.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Molson Coors Brewing (TAP) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.64%. A quarter ago, it was expected that this beer maker would post earnings of $0.36 per share when it actually produced earnings of $0.62, delivering a surprise of +72.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Molson Coors, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $3.1 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.24%. This compares to year-ago revenues of $3.2 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Molson Coors shares have lost about 10.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Molson Coors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Molson Coors was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $2.97 billion in revenues for the coming quarter and $4.77 on $11.09 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Brown-Forman B (BF.B), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2. This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Brown-Forman B's revenues are expected to be $922.86 million, down 0.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Brown-Forman Corporation (BF.B) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GOLDEN, Colo. & MONTRÉAL, August 06, 2026--(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 2026 second quarter. 2026 SECOND QUARTER FINANCIAL HIGHLIGHTS1 Net sales decreased 3.3% reported and 3.6% in constant currency. U.S. GAAP income before 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%. 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. 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." 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 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. COGS 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. Underlying (Non-GAAP) MG&A: increased 3.2% in constant currency. U.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. Effective Tax Rate and Underlying (Non-GAAP) Effective Tax Rate 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: 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 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. U.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. Underlying (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: 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 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. Underlying (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. 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 2.53x. As of June 30, 2025, our net debt to underlying EBITDA ratio was 2.41x. 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. 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. 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. 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. In 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 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. NOTES Unless otherwise indicated in this release, all $ amounts are in USD, and all comparative results are for the Company’s second quarter ended June 30, 2026, compared to the second quarter ended June 30, 2025. Some numbers may not sum due to rounding. 2026 SECOND QUARTER INVESTOR CONFERENCE CALL Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 8:30 a.m. Eastern Time today to discuss the Company’s 2026 second quarter results. The live webcast will be accessible via our website, ir.molsoncoors.com. An online replay of the webcast is expected to be posted within two hours following the live webcast. The Company will post this release and related financial statements on its website today. OVERVIEW OF MOLSON COORS BEVERAGE COMPANY For more than two centuries, we have brewed beverages that unite people to celebrate all life’s moments. From our core power brands, Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko, to our above premium brands, including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel’s Summer Shandy, to our value brands, like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While our history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer and Monaco, spirits and non-alcoholic beverages. We also have partner brands, such as Simply Spiked, ZOA Energy, Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions. To learn more about Molson Coors Beverage Company, visit molsoncoors.com. ABOUT MOLSON COORS CANADA INC. Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson Coors Beverage Company. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively. FORWARD-LOOKING STATEMENTS This press release includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intends," "goals," "plans," "believes," "confidence," "views," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the headings "CEO and CFO Perspectives" and "2026 Outlook," with respect to, among others, expectations and impacts of macroeconomic forces, beverage industry trends, cost inflation and tariffs, commodity prices, consumer preferences and limited consumer disposable income, overall volume and market share trends, our competitive position, execution of our strategic priorities, anticipated results, pricing trends, cost reduction strategies, including the Americas Restructuring Plan announced in October of 2025 as well as other restructuring projects and the expected charges and benefits of the restructuring, shipment levels and profitability, the sufficiency of capital resources, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, Preserving the Planet and related environmental initiatives, effective tax rate, and expectations regarding future dividends and share repurchases. In addition, statements that we make in this press release that are not statements of historical fact may also be forward-looking statements. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission ("SEC"), including the risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. MARKET AND INDUSTRY DATA The market and industry data used, if any, in this press release are based on independent industry publications, customer specific data, trade or business organizations, reports by market research firms and other published statistical information from third parties, including Circana (formerly Information Resources, Inc.) for U.S. market data and Beer Canada for Canadian market data (collectively, the "Third-Party Information"), as well as information based on management’s good faith estimates, which we derive from our review of internal information and independent sources. Such Third-Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable. APPENDIX Worldwide brand volume (or "brand volume" when discussed by segment) reflects owned or actively managed brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Financial volume represents owned or actively managed brands sold to unrelated external customers within our geographic markets, net of returns and allowances as well as contract brewing, wholesale non-owned brand volume and company-owned distribution volume. Contract brewing and wholesale/factored volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Factored volume in our EMEA&APAC segment represents the distribution of beer, wine, spirits and other products owned and produced by other companies to the on-premise channel such as bars and restaurants, which is a common arrangement in the U.K. Royalty volume consists of our brands produced and sold by third parties under various license and contract brewing agreements and, because this is owned volume, it is included in worldwide brand volume. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler ("STW") volume to Sales-to-Retailer ("STR") volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends. We also utilize net sales per hectoliter and COGS per hectoliter, as well as the year over year changes in this metric, as a key metric for analyzing our results. These metrics are calculated as net sales and COGS per our consolidated statements of operations divided by financial volume for the respective period. We believe these metrics are important and useful for investors and management because it provides an indication of the trends of price and sales mix on our net sales and the trends of mix and other cost impacts on our COGS. NON-GAAP MEASURES AND RECONCILIATIONS Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. ("U.S. GAAP"), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segment business performance. These non-GAAP measures should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We have provided reconciliations of all historical non-GAAP measures to their nearest U.S. GAAP measure and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. Our management uses these metrics to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the Board of Directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe these measures are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance. Underlying Income (Loss) before Income Taxes (Closest GAAP Metric: Income (Loss) Before Income Taxes) –Measure of the Company’s or segment's income (loss) before income taxes excluding the impact of certain non-GAAP adjustment items from our U.S. GAAP financial statements. Non-GAAP adjustment items include goodwill and other intangible and tangible asset impairments, certain restructuring and integration related costs, unrealized mark-to-market gains and losses, adjustments to the redemption value of mandatorily redeemable noncontrolling interests, potential or incurred losses related to certain litigation accruals and settlements, impacts of settlement charges related to annuity purchases and gains and losses on sales of non-operating assets, among other items included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results (collectively, "Non-GAAP adjustment items"). We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective, involve significant management judgment and can vary substantially from company to company. Underlying COGS (Closest GAAP Metric: COGS) – Measure of the Company’s COGS adjusted to exclude non-GAAP adjustment items (as defined above). Non-GAAP adjustment items include, among other items, unrealized mark-to-market gains and losses on our commodity derivative instruments, which are economic hedges, and are recorded through COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivatives without the resulting unrealized mark-to-market volatility.We also use underlying COGS per hectoliter, as well as the year over year change in such metric, as a key metric for analyzing our results. This metric is calculated as underlying COGS divided by financial volume for the respective period. Underlying MG&A (Closest GAAP Metric: MG&A) – Measure of the Company’s MG&A expense excluding the impact of certain non-GAAP adjustment items (as defined above). Underlying net income (loss) attributable to MCBC (Closest GAAP Metric: Net income (loss) attributable to MCBC) – Measure of net income (loss) attributable to MCBC excluding the impact of income (loss) before income tax non-GAAP adjustment items (as defined above), adjustments to the carrying value of redeemable noncontrolling interests resulting from subsequent changes in the redemption value of such interests, the related tax effects of non-GAAP adjustment items and certain other discrete tax items. Underlying net income (loss) attributable to MCBC per diluted share (also referred to as Underlying Diluted Earnings per Share) (Closest GAAP Metric: Net income (loss) attributable to MCBC per diluted share) – Measure of underlying net income (loss) attributable to MCBC (as defined above) per diluted share. If applicable, a reported net loss attributable to MCBC per diluted share is calculated using the basic share count due to dilutive shares being antidilutive. If underlying net income (loss) attributable to MCBC becomes income excluding the impact of our non-GAAP adjustment items, we include the incremental dilutive shares, using the treasury stock method, into the dilutive shares outstanding. Underlying effective tax rate (Closest GAAP Metric: Effective Tax Rate) – Measure of the Company’s effective tax rate excluding the related tax impact of pre-tax non-GAAP adjustment items (as defined above) and certain other discrete tax items. Discrete tax items include certain significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. Underlying free cash flow (Closest GAAP Metric: Net Cash Provided by (Used in) Operating Activities) – Measure of the Company’s operating cash flow calculated as Net Cash Provided by (Used In) Operating Activities less Additions to property, plant and equipment and excluding the pre-tax cash flow impact of certain non-GAAP adjustment items (as defined above). We consider underlying free cash flow an important measure of our ability to generate cash, grow our business and enhance shareholder value, driven by core operations and after adjusting for non-GAAP adjustment items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. Underlying depreciation and amortization (Closest GAAP Metric: Depreciation & Amortization) – Measure of the Company’s depreciation and amortization excluding the impact of non-GAAP adjustment items (as defined above). These adjustments primarily consist of accelerated depreciation or amortization taken related to the Company’s strategic exit or restructuring activities. Net debt and net debt to underlying earnings before interest, taxes, depreciation, and amortization ("underlying EBITDA") (Closest GAAP Metrics: Cash, Debt, & Net Income (Loss)) – Measure of the Company’s leverage calculated as net debt (defined as current portion of long-term debt and short-term borrowings plus long-term debt less cash and cash equivalents) divided by the trailing twelve month underlying EBITDA. Underlying EBITDA is calculated as Net income (loss) excluding Interest expense (income), net, Income tax expense (benefit), depreciation and amortization and the impact of non-GAAP adjustment items (as defined above). Effective January 1, 2025, on a prospective basis, Underlying EBITDA excludes amortization of cloud-based software implementation costs. This measure is not the same as the Company’s maximum leverage ratio as defined under its revolving credit facility, which allows for other adjustments in the calculation of net debt to EBITDA. Constant currency - Constant currency is a non-GAAP measure utilized to measure performance, excluding the impact of translational and certain transactional foreign currency movements, and is intended to be indicative of results in local currency. As we operate in various foreign countries where the local currency may strengthen or weaken significantly versus the U.S. dollar or other currencies used in operations, we utilize a constant currency measure as an additional metric to evaluate the underlying performance of each business without consideration of foreign currency movements. We present all percentage changes for net sales, underlying COGS, underlying MG&A and underlying income (loss) before income taxes in constant currency and calculate the impact of foreign exchange by translating our current period local currency results (that also include the impact of the comparable prior period currency hedging activities) at the average exchange rates during the respective period throughout the year used to translate the financial statements in the comparable prior year period. The result is the current period results in U.S. dollars, as if foreign exchange rates had not changed from the prior year period. Additionally, we exclude any transactional foreign currency impacts, reported within the other non-operating income (expense), net line item, from our current period results. Our guidance or long-term targets for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide guidance or long-term targets for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806140333/en/ Contacts Investor Relations Barbara Noverini, [email protected] News Media Rachel Gellman Johnson, [email protected]