06:21 AM EST, 11/07/2025 (MT Newswires) -- Monster Beverage ( MNST ) shares rose early Friday as the company recorded better-than-expected third-quarter results, buoyed by robust demand for energy drinks.

Adjusted earnings came in at $0.56 a share for the September quarter, up from $0.41 a year earlier, the energy drinks firm said late Thursday, while the consensus on FactSet was for $0.48. Sales climbed 17% to $2.2 billion amid a foreign-exchange tailwind of $31.8 million, topping the Street's view for $2.11 billion.

The stock gained 3.6% in the most recent premarket activity.

"We're pleased to report yet another quarter of strong financial results and cash generation with record quarterly net sales," Chief Executive Hilton Schlosberg said during an earnings call, according to a FactSet transcript. "Overall, the global energy drink category remains healthy with robust growth."

Sales in the Monster energy drink segment advanced 18% to $2.03 billion, while the strategic brands division increased about 16% to $130.5 million. Revenue in alcohol brands dropped 17% to $33 million. Sales to customers outside the US, which accounted for roughly 43% of total revenue, grew about 23% to $937.1 million. Sales in the US and Canada inclined by 12% year over year, Schlosberg said on the call.

Gross profit as a percentage of sales rose to 55.7% from 53.2% last year due to pricing actions, supply chain optimization and product sales mix, according to the company.

Monster Beverage ( MNST ) incurred a "modest" overall impact from tariffs during the third quarter, with production of its finished products taking place locally in its respective markets, according to Schlosberg. "Despite the modest impact on our business in the third quarter, the tariff landscape continues to be complicated and dynamic," the CEO added.

Tariffs significantly impacted the Midwest premium for aluminum, which raised the cost of aluminum cans, Schlosberg told analysts.

"We do not believe based on our business model that the current tariffs will have a material impact on the company's operating results," Schlosberg said. "However, we expect it will continue to have a modest impact in the fourth quarter of 2025 and in 2026."

The company continues to implement mitigation strategies across the business where possible, Schlosberg added.