Molson Coors Beverage Company (NYSE:TAP) reported third-quarter revenue below analysts’ expectations on Thursday and reduced its full-year financial guidance, citing lower sales volumes and increased operating costs.
The beverage producer reported adjusted earnings of $1.46 per share, slightly exceeding the analyst consensus estimate of $1.45. However, net sales declined 1.6% year over year to $2.93 billion, compared with expectations of $2.94 billion.
Molson Coors shares fell 3.36% in premarket trading following the announcement.
The company also lowered its 2026 forecasts for underlying earnings per share and free cash flow, reflecting revised expectations for the remainder of the year.
Molson Coors generated net sales of $2.93 billion during the third quarter, representing a 1.6% decrease from the corresponding period in 2025.
The result was approximately $10 million below the analyst consensus estimate of $2.94 billion.
On a constant currency basis, net sales decreased 1.2% year over year.
The decline was primarily attributable to a 3.0% reduction in financial volume, partially offset by favorable pricing and sales mix.
Adjusted earnings per share reached $1.46, compared with analysts’ expectations of $1.45.
Although adjusted earnings slightly exceeded forecasts, the company’s revenue performance reflected lower sales volumes across its operating markets.
Molson Coors reported a 4.9% decline in global brand volume during the third quarter.
In the Americas segment, brand volume decreased 5.3% compared with the previous year.
The Europe, Middle East, Africa and Asia-Pacific (EMEA&APAC) segment recorded a 3.8% decline.
The reductions contributed to the company’s lower financial volume and net sales during the period.
Financial volume decreased 3.0%, while favorable pricing and sales mix partially offset the effect on revenue.
The difference between brand volume and financial volume reflects the company’s separate measures of product sales activity.
Following the third-quarter results, Molson Coors revised its full-year 2026 net sales forecast.
The company now expects net sales to decline between 1% and 2% on a constant currency basis.
Its previous guidance called for net sales to remain approximately flat, within a range of 1% growth to a 1% decline.
The midpoint of the revised forecast represents a 1.5% decrease, compared with the previous midpoint of no change.
The reduction reflects updated expectations for sales performance following the volume declines recorded during the third quarter.
Molson Coors also reduced its outlook for underlying earnings per share.
The company now expects underlying EPS to decline between 16% and 19% compared with 2025.
Its previous guidance anticipated a decrease of 11% to 15%.
The midpoint of the revised range represents a 17.5% decline, compared with a 13% decrease at the midpoint of the previous forecast.
The updated earnings guidance reflects the company’s revised financial expectations amid lower sales volumes and higher operating costs.
The company did not provide a specific dollar amount for expected full-year underlying EPS in the supplied announcement.
Molson Coors identified higher costs associated with materials, logistics and manufacturing as factors affecting its third-quarter results.
The company reported approximately $30 million of unfavorable impact related to Midwest Premium pricing.
These expenses contributed to the operating cost pressures experienced during the period.
The company also cited lower sales volumes as a factor affecting financial performance.
The combination of volume declines and cost inflation was reflected in the reduction in underlying income before income taxes.
Molson Coors reported underlying income before income taxes of $349.0 million during the third quarter.
On a constant currency basis, the figure represented a 17.4% decline from the corresponding period last year.
The decrease occurred alongside lower net sales and increased costs related to materials, logistics and manufacturing.
The reduction in underlying pretax income was greater than the percentage decline in revenue, reflecting the combined effects of sales volumes and operating expenses.
The company also reported positive year-to-date underlying free cash flow, although it reduced its forecast for the full year.
Molson Coors generated underlying free cash flow of $852.0 million during the first nine months of 2026.
The figure represented an increase of $69.9 million compared with the corresponding period in 2025.
Despite the year-to-date improvement, the company lowered its full-year underlying free cash flow guidance.
Molson Coors now expects underlying free cash flow of approximately $1.0 billion, plus or minus 10%.
This compares with its previous forecast of $1.1 billion.
The revised guidance implies a range of approximately $900 million to $1.1 billion for the full year.
Tracey Joubert, Chief Financial Officer of Molson Coors, commented on the company’s quarterly financial performance and the factors affecting its results.
“Our third quarter financial results reflect both the benefits of the deliberate actions we’ve taken under Horizon 2030 and the impact of external headwinds that intensified as the year progressed,” Joubert said.
The company identified its Horizon 2030 initiatives alongside external factors, including cost inflation and declining sales volumes.
Management’s revised guidance incorporates the financial effects of these conditions during 2026.
Molson Coors reported third-quarter net sales of $2.93 billion, down 1.6% year over year and slightly below analysts’ expectations.
Adjusted earnings per share reached $1.46, marginally exceeding the consensus estimate of $1.45.
Global brand volume declined 4.9%, while underlying income before income taxes decreased 17.4% on a constant currency basis to $349.0 million.
The company lowered its full-year constant currency sales forecast to a decline of 1% to 2% and now expects underlying earnings per share to fall between 16% and 19%.
Molson Coors also reduced its underlying free cash flow guidance to approximately $1.0 billion, plus or minus 10%, despite generating $852.0 million during the first nine months.
Investors will continue to monitor sales volumes, pricing, operating costs and the company’s performance against its revised annual forecasts.
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