Molson Coors Beverage Company ( TAP/A ) reported second-quarter results on Tuesday, with adjusted earnings per share of $2.05, beating the analyst consensus estimate of $1.86.

Quarterly sales of $3.201 billion beat the Street view of $3.121 billion. Net sales decreased 1.6% reported and 2.6% in constant currency.

Brand volumes decreased 5.1%, including a 4.0% decrease in the Americas as well as a 7.8% decrease in EMEA & APAC.

Also Read: Molson Coors Hurt By Fewer People Drinking Beer, Warns Analyst

Net sales in Americas fell 2.8% year over year to $2.504 billion, EMEA & APAC gained 3% to $703.9 million.

The company said its second-quarter results were weighed down by weak macroeconomic conditions in the beer market and softer U.S. market share, which hurt volume leverage, and by expected headwinds from ending its Americas contract brewing agreements at the end of 2024.

Underlying (Non-GAAP) EBITDA in the quarter under review increased to $763.9 million, compared with $750.1 million a year ago. 

“We continue to view the incremental softness in the industry performance this year as cyclical, and we continue to believe in Molson Coors’ ability to achieve its long-term growth objectives,” said CEO Gavin Hattersley. 

Total debt as of June 30 was $6,319.3 million, and cash and equivalents totaled $613.8 million.

Outlook

Molson Coors Beverage ( TAP/A ) projects fiscal 2025 adjusted EPS of $5.36–$5.54, below the $5.96 consensus, and anticipates sales of $11.162–$11.278 billion versus $11.386 billion expected.

“As a result of the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected U.S. share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum, in particular the Midwest Premium pricing, we have adjusted our 2025 full-year top and bottom-line guidance. However, we are reaffirming our annual underlying free cash flow guidance of $1.3 billion plus or minus 10% due to expected higher cash tax benefits and favorable working capital,” Hattersley added.

TAP stock has rebounded, now up almost 2%, recovering from earlier losses that followed the company’s forecast of a 3-4% drop in 2025 net sales.

Price Action: TAP shares are trading higher by 1.73% to $49.45 at last check Tuesday.

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