Molson Coors Stock Dips on Q3 Earnings & Sales Miss, Soft 2025 View

Molson Coors Beverage Company TAP has posted third-quarter 2025 results, wherein the top and bottom lines missed the Zacks Consensus Estimate. Both sales and earnings per share declined year over year.

The company’s adjusted earnings of $1.67 per share declined 7.2% year over year and missed the Zacks Consensus Estimate of $1.72.

Net sales dropped 2.3% year over year on a reported basis and 3.3% on a constant-currency basis to $2.97 billion, and missed the Zacks Consensus Estimate of $3.02 billion. The decline was due to lower financial volumes, partly offset by an improved price and sales mix, and favorable currency.

Shares of Molson Coors fell 1.7% in the pre-market trading session today, following the soft third-quarter 2025 results and a bleak view for 2025. The Zacks Rank #4 (Sell) company lost 12.2% in the past three months compared with the industry’s 4.7% decline.

Molson Coors’ Q3 Details

Financial volumes decreased 6% year over year due to lower shipments across the Americas and EMEA&APAC segments. Brand volumes fell 4.5%, with a 4.4% dip in the Americas and a 5% decline in the EMEA&APAC segment.

Net sales were positively influenced by the price and sales mix, which increased 2.7% year over year, driven by a favorable sales mix and higher net pricing. Net sales per hectoliter (hl) rose 4% on a reported and 2.9% on a constant-currency basis.

Gross profit decreased 2.4% year over year to $1.17 billion and the gross margin fell 5 basis points (bps) to 39.47% in the quarter.

Marketing, general and administrative (MG&A) expenses rose 0.3% year over year on a reported basis to $686.7 million due to the timing of marketing investments and unfavorable currency impacts of $6.7 million, offset by lower general and administrative expenses resulting from lower incentive compensation.

Underlying earnings before taxes (EBT) declined 11.2% year over year to $426 million. On a constant-currency basis, underlying EBT declined 11.9%, led by lower financial volumes and cost inflation with respect to materials and manufacturing expenses, partly offset by a favorable mix, higher net pricing and cost savings initiatives.

Molson Coors Beverage Company Price, Consensus and EPS Surprise

 

Molson Coors Beverage Company price-consensus-eps-surprise-chart | Molson Coors Beverage Company Quote

TAP’s Segmental Information

Americas: Net sales in the segment fell 3.6% year over year to $2.26 billion on a reported basis and 3.5% on a constant-currency basis. The decline was due to lower financial volumes, offset by a favorable price and sales mix. Sales in the segment missed the Zacks Consensus Estimate of $2.32 billion.

Financial volumes were down 6.5% year over year, resulting from lower U.S. brand volumes, and a 3% impact of lower contract brewing volume due to the exit of contract brewing arrangements across the United States and Canada at the end of 2024. This was partly negated by the favorable timing of U.S. shipments. Brand volumes in the Americas were down 4.4%, including a 4.9% decline in the United States due to the macroeconomic impacts of industry softness and a lower share performance.

The price and sales mix aided net sales by 3%, owing to a favorable sales mix from lower contract brewing volumes, a positive brand mix and higher net pricing. Underlying EBT declined 7.1% on a constant-currency basis due to lower financial volumes, and cost inflation related to materials and manufacturing expenses, offset by a favorable mix, higher net pricing and cost-saving initiatives.

EMEA&APAC: The segment’s net sales rose 2.4% year over year to $721 million and fell 2.4% on a constant-currency basis. Reported sales benefited from a improved price and sales mix, and favorable currency effects, partially offset by lower financial volumes. The price and sales mix improved 2.5%, driven by geographic mix, premiumization and higher factored brand volumes, along with improved net pricing. The Zacks Consensus Estimate for the segment’s sales was pegged at $715 million.

Financial and brand volumes dipped 4.9% and 5%, respectively, due to lower volumes across all regions, led by soft market demand and a heightened competitive landscape. The segment’s underlying EBT declined 15.1% year over year on a constant-currency basis due to lower financial volumes. This was partially offset by reduced MG&A expenses, led by lower incentive compensation and cost-saving initiatives.

Financial Updates for TAP

Molson Coors ended the third quarter of 2025 with cash and cash equivalents of $950.2 million. As of Sept. 30, 2025, the company had a total debt of $6.29 billion, resulting in a net debt of $5.34 billion.

Net cash provided by operating activities amounted to $1.24 billion for the nine months ended Sept. 30, 2025. Moreover, it recorded a negative underlying free cash flow of $782.1 million for the nine months ended Sept. 30, 2025, mainly due to a lower operating cash flow.

In the nine months ended Sept. 30, 2025, Molson Coors paid out dividends of $285.7 million and repurchased shares worth $332.8 million, including brokerage commissions.

What to Expect From TAP in 2025?

Although Molson Coors has reiterated its 2025 guidance for select key financial metrics, it anticipates the results around the lower end of these ranges.

Molson Coors projects a year-over-year sales decline of 3-4% on a constant-currency basis for 2025. The company anticipates 2025 underlying EPS to decline 7-10% year over year. 

It expects underlying EBT to decline 12-15% year over year at constant currency. Underlying depreciation and amortization are projected to be $675 million, plus or minus 5%. The company forecasts an underlying effective tax rate of 22-24% for 2025. Underlying net interest expenses are anticipated to be $225 million (plus or minus 5%).

The company estimates a capital expenditure of $650 million (plus or minus 5%) for 2025. The underlying free cash flow is expected to be $1.3 billion, plus or minus 10%.

Better-Ranked Stocks to Consider

PepsiCo Inc. PEP is one of the leading global food and beverage companies. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PEP delivered a trailing four-quarter earnings surprise of 1.1%, on average. The Zacks Consensus Estimate for PepsiCo’s current financial-year sales indicates growth of 1.8% from the year-ago reported number, while the EPS estimate suggests a year-over-year decline of 0.6%.

Ambev ABEV is engaged in producing, distributing and selling beer, carbonated soft drinks, and other non-alcoholic and non-carbonated products in many countries across the Americas. ABEV currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Ambev’s current financial-year sales indicates year-over-year growth of 1.5%, while the EPS estimate suggests no change from the year-ago reported number. ABEV delivered a trailing four-quarter negative earnings surprise of 4.2%, on average.

Fomento Economico Mexicano FMX, alias FEMSA, operates as a franchise bottler of Coca-Cola trademark beverages worldwide. FMX has a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for FEMSA’s current financial-year sales implies growth of 2.5%, while the EPS estimate indicates a year-over-year decline of 4.8% from the year-ago reported number. FEMSA delivered a trailing four-quarter negative earnings surprise of 28.1%, on average. 

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