Keurig Dr Pepper Shares Rise 0.55% on Strong Q2 Earnings Despite Ranking 392nd in Daily Trading Volume

Keurig Dr Pepper (KDP) closed August 12, 2025, with a 0.55% gain, its shares trading at $34.62. The stock saw a trading volume of $270 million, ranking 392nd in daily volume. The company reported Q2 fiscal 2025 results on July 24, with non-GAAP revenue of $4.16 billion, a 6.1% year-over-year increase and 0.57% above estimates. Strong performance in U.S. Refreshment Beverages, driven by 9.5% volume growth and new product launches like Dr Pepper Blackberry, offset declines in the U.S. Coffee segment, where pod and brewer shipments fell 3.8%. International operations faced currency headwinds but saw 5.7% growth on a constant currency basis. Operating margins remained steady at 24.7%, and management reaffirmed full-year guidance for mid-single-digit sales growth.

Key operational highlights include a 10.5% rise in U.S. Refreshment Beverages net sales to $2.66 billion, supported by GHOST energy drink acquisitions and flavor innovations. The U.S. Coffee segment stabilized after a challenging first half, with adjusted operating income up 2.0%. International sales declined 1.8% in reported terms but showed underlying strength in Mexico and Canada. Free cash flow for the first half of 2025 totaled $427 million, though lower than the prior year, and the leverage ratio stood at 3.3 times. Management emphasized cost controls, productivity, and distribution expansion as growth pillars while cautioning about ongoing input costs and tariff impacts.

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