The Boston Beer Company (SAM) Q4 2025 earnings summary

Executive summary

• Operational discipline enabled delivery on financial commitments despite a challenging industry volume environment, with 2025 depletions down 4% and shipments down 4.7%, matching the overall beer industry decline.

• Successful national launch of Sun Cruiser, which is both revenue and margin accretive, and strong progress in margin enhancement initiatives.

• Free cash flow reached $216 million in 2025, supporting $200 million in share repurchases.

• Net income for 2025 was $108.5 million, up $48.8 million year-over-year, largely due to prior year impairment and contract settlement charges.

• Continued focus on brand investment, innovation, and productivity to drive future growth, especially in the beyond beer category, which now represents 85% of total company volume.

Financial highlights

• 2025 revenue declined 2.4% year-over-year to $1.965 billion, driven by a 4.7% decrease in shipments, partially offset by 2.3 percentage points of positive price and mix.

• Gross margin expanded by 410 basis points to 48.5% for the year, or 50% excluding certain costs, the highest since 2019.

• EPS of $9.89, up 4.7% year-over-year, excluding prior year impairment and one-time charges.

• Operating cash flow was $270.2 million, with year-end cash of $223.4 million and no debt.

• Q4 revenue decreased 4.1% year-over-year to $385.7 million, with gross margin up 360 basis points to 43.5%.

Outlook and guidance

• 2026 depletions and shipments expected to be flat to down mid-single digits, reflecting ongoing macroeconomic headwinds.

• Price increases of 1%-2% anticipated, with full-year gross margins projected between 48%-50%.

• EPS guidance for 2026 is $8.50 to $11 per diluted share; effective tax rate estimated at 29%-30%.

• Capital expenditures for 2026 expected to be $70-$90 million, focused on brewery capabilities and efficiency.

• Advertising, promotional, and selling expenses to increase by $20-$40 million in 2026; tariff costs expected between $20–$30 million.