Molson Coors B 2025 Q2 Earnings Mixed Performance as EPS Grows, Net Income Declines Slightly

Molson Coors B (TAP) reported its fiscal 2025 Q2 earnings on August 5, 2025. The company beat revenue and EPS estimates despite challenging market conditions and a decline in beer volume. However, it cut full-year guidance for both sales and earnings, citing ongoing macroeconomic pressures and industry softness.

Revenue
Molson Coors B recorded total revenue of $3.20 billion for Q2 2025, a 1.6% decline from $3.25 billion in the same period last year. The company’s top line included $3.74 billion in sales, with a significant offset from excise taxes of -$539.20 million. After accounting for these taxes, net sales came in at $3.20 billion.

Earnings/Net Income
The company’s earnings per share (EPS) increased by 5.4% year-over-year to $2.14, outpacing the $2.03 reported in Q2 2024. However, net income slightly declined to $424.30 million from $425.30 million in the prior-year quarter. While EPS growth reflects operational strength, the modest net income drop highlights ongoing margin pressures.

Price Action
Molson Coors B’s stock edged up 0.37% during the latest trading day but fell 2.77% over the past week and 0.44% month-to-date, reflecting mixed short-term sentiment.

Post-Earnings Price Action Review
Despite beating expectations, historical backtesting of a 30-day post-earnings trading strategy following revenue raises showed no excess returns over the past three years. The strategy recorded a 0.00% compound annual growth rate, no Sharpe ratio, and no risk-adjusted benefits, suggesting the positive results may not be predictive of future performance.

CEO Commentary
Gavin Hattersley, President and Chief Executive Officer, attributed the mixed results to macroeconomic headwinds, weaker U.S. market share performance, and volume deleverage, partially offset by strong pricing and product mix. He emphasized the cyclical nature of the industry and reaffirmed long-term growth objectives, including continued focus on premiumization and core brand share gains.

Guidance
Molson Coors B revised its full-year 2025 guidance, now expecting net sales to decline 3% to 4% in constant currency, with underlying income before taxes also down 12% to 15%. It now anticipates a 7% to 10% decrease in underlying diluted EPS, compared to earlier low-single-digit growth. Free cash flow guidance remains unchanged at $1.3 billion, plus or minus 10%.

Additional News
On August 6, 2025, Molson Coors reported stronger-than-expected Q2 results despite a 6.6% drop in beer volume. Revenue of $3.2 billion slightly missed the previous year’s figure but exceeded Wall Street estimates of $3.12 billion. Earnings per share rose to $2.05, a 6.8% increase from $1.83 a year earlier. The company cited macroeconomic pressures, including higher-than-expected indirect tariff impacts on aluminum pricing and the discontinuation of contract brewing arrangements in the Americas at year-end 2024, as key factors behind the guidance cut. CEO Gavin Hattersley highlighted the challenges from the U.S. market share performance and the broader economic environment but reaffirmed confidence in long-term strategies. The company also reiterated its $1.3 billion free cash flow guidance, citing favorable tax benefits and working capital. Shares rose 1.2% to $49 in late morning trading.