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Molson Coors reported third-quarter net sales of $2.93 billion, below the $2.94 billion consensus, while adjusted earnings per share of $1.46 exceeded the $1.45 consensus. Revenue was $2.9 billion in the year-ago quarter.
The company’s filing attributed the sales decline to lower financial volume and unfavorable currency effects, partly offset by pricing and sales mix. Financial volume fell 3.0%, with lower shipments in both the Americas and EMEA&APAC. In the Americas, the filing cited lower U.S. volume and industry softness; in EMEA&APAC, it pointed to soft U.K. demand and competition.
Gross margin fell to 35.2% from 39.5% a year earlier. The filing said cost of goods sold per hectoliter rose 8.6%, citing materials, logistics and manufacturing inflation, including approximately $30 million from Midwest Premium pricing. Diluted earnings per share were $1.45, compared with −$14.79 a year earlier; the filing said the prior-year quarter included a $3,645.7 million partial goodwill impairment. Free cash flow was $332.3 million, down from $484.7 million.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.9 billion | $3.0 billion | −1.58% |
| Diluted EPS | $1.45 | −$14.79 | — |
| Gross margin | 35.2% | 39.5% | −4.3 percentage points |
| Operating margin | 13.3% | −115.4% | 128.7 percentage points |
| Free cash flow | $332.3 million | $484.7 million | −31.4% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.58 | $1.51 | Beat by 4.64% |
| Revenue | $3.1 billion | $3.1 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Rahul Goyal said U.S. category softness intensified in the third quarter, while U.K. promotional activity increased and U.S. freight and fuel costs remained elevated. CFO Tracey Joubert said the company’s internal estimates showed the U.S. beer industry declined more than 4% during the quarter.
Goyal said Coors Light and Miller Lite were the main drivers of an improvement in Molson Coors’ U.S. share trend from the second quarter. He said the company’s goal was to stabilize the brands and return them to share growth, supported by regional investment and local execution. In the U.K., Goyal said Molson Coors was investing in Carling after pressure on the category and consumers intensified.
Joubert said Americas pricing and sales mix increased net sales revenue per hectoliter by 2%, with Monaco the main contributor to the favorable mix. Goyal said Molson Coors planned to reposition Blue Moon away from its craft beer roots into a more modern premium space. He also said Monaco was tracking ahead of initial expectations.
On costs, Joubert said underlying cost of goods sold per hectoliter rose 8.1%, driven mainly by the Midwest Premium, aluminum, freight and fuel. Goyal said savings actions had offset some inflation, but added: “We cannot cost cut our way to sustainable growth.” He said the company was investing in supply-chain projects, alternative sources of critical materials and more of its own can supply.
Asked about the range of guidance and 2027, Goyal pointed to commodity pressure, particularly freight and fuel, as well as shipment and administrative-expense timing. Joubert said the revised outlook assumed soft volume trends and U.K. promotional pressure would continue through the rest of 2026. She said Midwest Premium hedge coverage was in place for 2027, but exposure was never fully hedged.
Guidance
Joubert said Molson Coors now expects 2026 net sales revenue to decline 1% to 2% at constant currency, versus its previous range of flat plus or minus 1%. She said underlying pretax income is expected to decline 21% to 24%, compared with the prior 15% to 18% decline.
Molson Coors now expects underlying earnings per share to decline 16% to 19%, versus its previous 11% to 15% decline. Joubert said underlying free cash flow guidance is now $1 billion plus or minus 10%, compared with $1.1 billion plus or minus 10% previously.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Free cash flow, non-GAAP | FY2026 | $1.0 billion, plus or minus 10% | $1.1 billion, plus or minus 10% | Cut |
| Units, US | Q4 FY2026 | Molson Coors expects U.S. financial volumes to converge toward brand volumes in the balance of FY2026. | — | — |
| Tax rate, non-GAAP | FY2026 | 22.0%–24.0% | 22.0%–24.0% | Held |
| Capex | FY2026 | $650.0 million, plus or minus 5% | $650.0 million, plus or minus 5% | Held |
| EPS growth, non-GAAP | FY2026 | −$0.19–−$0.16 | −$0.15–−$0.11 | Cut |
| Operating expenses, Mg&a | H2 FY2026 | Molson Coors expects MG&A expenses to decrease in the second half of FY2026 compared with the prior year. | — | — |
| Market size, US Beer Industry | FY2026 | Molson Coors expects U.S. beer industry volume trends in FY2026 to be better than the 5% decline experienced in 2025. | — | — |
| Debt, Net Debt To Underlying Ebitda | FY2026 | 2.5× | — | — |
| Operating expenses, Incentive Compensation | FY2026 | Molson Coors expects incentive compensation expenses to be higher than in 2025, with the largest increase in Q2 FY2026. | — | — |
| Operating expenses, Mg and A | FY2026 | Molson Coors expects MG&A expenses to rise significantly during the rest of FY2026 compared with 2025. | — | — |
| Market share, US | FY2026 | Molson Coors expects its U.S. market share performance for the rest of FY2026 to improve compared with Q1. | — | — |
| Units, US Shipments | FY2026 | Molson Coors expects U.S. shipments to match consumption for FY2026. | — | — |
| Revenue growth, Monaco | FY2026 | 1.00% | — | New |