The brewer topped revenue and adjusted EPS estimates, kept full-year guidance intact and reported stronger first-half free cash flow despite weaker volumes and higher aluminum-related costs.
Molson Coors Beverage Co. shares edged higher Thursday after the brewer posted second-quarter 2026 results that beat Wall Street estimates and reaffirmed its full-year outlook. Net sales were $3.097 billion, down 3.3% from a year earlier, or 3.6% on a constant-currency basis, but above the $3.081 billion analyst consensus estimate. Adjusted diluted earnings fell 22.9% to $1.58 per share, ahead of the $1.51 estimate, while GAAP diluted earnings dropped 42.3% to $1.23 per share. The company said stronger first-half free cash flow and Monaco Cocktails tracking slightly ahead of expectations also supported sentiment. Results still reflected pressure on volumes and costs. Financial volume fell 5.4% to 19.734 million hectoliters and brand volume declined 4.8% to 19.628 million hectoliters, with lower volume partly offset by favorable pricing and sales mix. Underlying cost of goods sold per hectoliter rose 6.3%, including $40 million of unfavorable Midwest Premium pricing and volume deleverage. In the Americas, net sales declined 4.1% in constant currency to $2.402 billion and underlying pretax income fell 22.6% to $396.1 million as U.S. core and value brands weakened. In EMEA and Asia-Pacific, net sales slipped 2% in constant currency to $700.8 million and underlying pretax income dropped 44.3% to $41 million amid weaker U.K. demand, competition, channel mix pressure and inflation. Cash generation improved in the first half, with operating cash flow rising to $820.4 million and underlying free cash flow jumping 75.1% to $513.8 million. Molson Coors ended the period with $2.128 billion in cash, $7.710 billion in total debt and $5.582 billion in net debt, for a 2.53-times net debt-to-underlying EBITDA ratio. It repurchased about 4.4 million shares for $207 million, paid a $0.48 quarterly dividend and said it is targeting $450 million of cost savings from 2026 through 2028. Management also said Monaco Cocktails is expected to be incrementally profitable in 2026. On the earnings call, executives said inflation and higher fuel prices pushed consumers toward convenience stores, dollar channels, smaller pack sizes and value-priced brands in the second quarter. They added that the FIFA World Cup boosted sales in host cities and on-premise locations but did not deliver the broad industry lift many had anticipated. Molson Coors maintained full-year adjusted EPS guidance implying $4.61 to $4.82 versus the $4.73 estimate, reaffirmed constant-currency sales guidance of flat, plus or minus 1%, implying $11.029 billion to $11.252 billion versus the $11.107 billion estimate, and kept underlying free cash flow guidance at $1.1 billion, plus or minus 10%. The company also warned elevated aluminum costs would remain a headwind through the rest of 2026, with Midwest premium inflation now expected to exceed $130 million.