Molson Coors Says World Cup Didn't Deliver the Beer Boom Many Expected

Molson Coors Beverage Co. (NYSE: TAP ) stock edged higher Thursday after the company reported second-quarter 2026 results that topped Wall Street estimates and reaffirmed its full-year outlook.

The brewer reported net sales of $3.097 billion, down 3.3% from a year earlier, or 3.6% on a constant-currency basis, but above the analyst consensus estimate of $3.081 billion.

Its portfolio includes beer, cider and flavored beverage brands including Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Staropramen.

GAAP diluted earnings fell 42.3% to $1.23 per share.

Adjusted diluted earnings declined 22.9% to $1.58 per share, topping the analyst estimate of $1.51.

The stock gained after the company beat earnings and revenue estimates, reaffirmed its 2026 guidance and reported stronger first-half free cash flow.

Management also said the Monaco Cocktails acquisition is tracking slightly ahead of expectations.

Volume and Cost Pressures Financial volume decreased 5.4% to 19.734 million hectoliters, while brand volume fell 4.8% to 19.628 million hectoliters.

Lower volume was partly offset by favorable pricing and sales mix.

Underlying cost of goods sold per hectoliter rose 6.3%, including $40 million of unfavorable Midwest Premium pricing and volume deleverage.

Regional Performance Americas net sales declined 4.1% in constant currency to $2.402 billion.

Underlying pretax income fell 22.6% to $396.1 million.

Financial volume dropped 6.4%, and brand volume decreased 5.3%, reflecting weaker U.S. core and value brand performance, shipment timing and inflation.

EMEA and Asia-Pacific net sales fell 2% in constant currency to $700.8 million.

Underlying pretax income declined 44.3% to $41 million as lower U.K. demand, competition, unfavorable channel mix and inflation pressured results.

Cash Flow and Strategic Actions For the first half, operating cash flow rose to $820.4 million and underlying free cash flow increased 75.1% to $513.8 million.

Cash was $2.128 billion, total debt was $7.710 billion and net debt was $5.582 billion, producing a 2.53-times net debt-to-underlying EBITDA ratio.

Year-to-date capital expenditures were $227 million.

Molson Coors repurchased about 4.4 million shares for $207 million and paid a $0.48 quarterly dividend.

Quarterly adjustments included restructuring charges, mark-to-market losses and $8.1 million of accelerated amortization tied to exiting an Americas brand.

The company targets $450 million of cost savings from 2026 through 2028.

Monaco Cocktails is expected to be incrementally profitable in 2026.

Earnings Call Highlights During the earnings conference call, management said inflation and higher fuel prices changed consumer buying behavior in the second quarter, with shoppers shifting toward convenience stores, dollar channels, smaller pack sizes and value-priced brands.

Executives also said the FIFA World Cup generated strong sales in host cities and on-premise locations but did not provide the broad industry boost many had expected.

Meanwhile, the company warned that elevated aluminum costs will remain a headwind through the rest of 2026, with Midwest premium inflation now expected to exceed $130 million despite hedging and cost-saving measures.

2026 Outlook Molson Coors reaffirmed full-year adjusted EPS guidance, implying a range of $4.61 to $4.82, compared with the $4.73 estimate.

It also reaffirmed constant-currency sales guidance of flat, plus or minus 1%, implying $11.029 billion to $11.252 billion versus the $11.107 billion estimate.

The company maintained underlying free cash flow guidance of $1.1 billion, plus or minus 10%, while expecting full-year Midwest Premium costs to exceed $130 million.

TAP Price Action: Molson Coors Beverage shares were up 2.05% at $42.75 at the time of publication on Thursday, according to Pro data.

Photo via Shutterstock Read Also: Budweiser Maker AB InBev Credits FIFA World Cup for Volume Lift, Sees Bigger Payoff Ahead