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.

• Net income attributable to shareholders was $151.3 million, with diluted EPS up 35.6% to $0.80 and underlying diluted EPS up 24% to $0.62.

• Underlying income before income taxes rose 16.2% year-over-year to $148 million in constant currency.

• Strategic focus on premiumization, cost savings, Beyond Beer expansion, and the Monaco Cocktails acquisition.

• Early progress in brand momentum, especially in on-premise channels and Beyond Beer segment.

Financial highlights

• Gross profit increased 5.4% to $897.2 million, with gross margin improvement and cost savings from lower MG&A.

• Financial volume declined 2.9% and brand volume fell 3.1% year-over-year.

• Americas net sales revenue increased 0.4% year-over-year, while EMEA & APAC revenue declined 1.2% in constant currency.

• 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 share repurchases in Q1 exceeded $160 million.

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.

• Underlying free cash flow projected at $1.1B (±10%), with capital expenditures of $650M (±5%).

• U.S. shipments expected down 6%-9% in Q2, with improvement in H2; annual net price increase of 1%-2% in North America anticipated.

• COGS to remain pressured by commodity costs, especially Midwest Premium and aluminum.