Molson Coors Beverage Company (TAP) Q1 2026 earnings summary

Executive summary

• Net sales rose 2.0% reported and 0.1% in constant currency year-over-year to $2,351 million, driven by favorable price/mix and currency, offset by lower volumes.

• Underlying income before income taxes increased 16.2% year-over-year in constant currency to $148 million, and underlying diluted EPS grew 24% to $0.62; net income attributable to shareholders was $151.3 million ($0.80 diluted EPS).

• Strategic focus on premiumization, cost savings, Beyond Beer expansion, and the acquisition of Atomic Brands (Monaco Cocktails).

• Americas segment saw revenue growth and improved profitability, while EMEA & APAC faced revenue and income declines due to soft demand and cost inflation.

• Significant media investments and share buybacks planned, with major summer events expected to boost performance.

Financial highlights

• Gross profit increased to $897.2 million, up 5.4% year-over-year, and gross margin improved.

• Marketing, general & administrative expenses decreased 6.6% year-over-year, reflecting cost savings and lower integration costs.

• Net sales per hectoliter increased 5.1% reported, and cost of goods sold per hectoliter rose 3.0% due to inflation and Midwest Premium pricing.

• Underlying free cash flow improved by $52 million year-over-year but remained negative at -$213 million.

• Dividend per share increased to $0.48, and 3.4 million shares were repurchased in Q1 2026.

Outlook and guidance

• 2026 net sales expected to be flat, plus or minus 1% versus 2025 on a constant currency basis.

• Underlying income before income taxes projected to decline 15–18% and underlying EPS to decline 11–15% versus 2025.

• Capital expenditures targeted at $650 million (±5%); underlying free cash flow at $1.1 billion (±10%).

• U.S. industry volume trend expected to improve versus 2025, with pricing growth of 1–2% and premiumization.

• Q2 U.S. financial volumes expected to be 6–9% lower year-over-year, with improvement in the second half.