Molson Coors Sees 21% to 24% Plunge in Underlying Net Before Taxes for 2026

Molson Coors Beverage Co. said it expects its underlying net profit before taxes to plunge 21% to 24% this year. Sales are expected to slip 1% to 2% on a constant-currency basis, it said. It noted that global beer industry volume, which has been softer in the second and third quarters, will remain soft in this quarter.

In reporting its third quarter net sales slipped 1.6% to $2,926.5 million in the third quarter. the fifth largest global brewer reported a profit of $273 million, or $1.46 a shareit. A year earlier, it had posted a net loss of $2.975 billion after accounting for the disposal of some assets.

But that wasn't the really stunning part of its quarterly earnings report.

On an underlying basis, Molson Coors said it earned $272.2 million, or $1.46 a share, down from $330.8 million, or $1.67 a share, a year earlier.

Rahul Goyal, president/CEO, acknowledged the sub-par performance even as he asserted the company is on the right track:

"Since launching Horizon 2030 earlier this year, we've been laying important groundwork for long-term success by building the portfolio, capabilities, routines, and operating discipline needed to perform more consistently across the business," he said. "We've taken decisive actions intended to strengthen our share trend performance, accelerate our portfolio transformation, simplify our cost structure, and return cash to shareholders.

"We believe our strategy is on the right track, but these outcomes are not yet scaled enough to offset the headwinds that we experienced in the third quarter. While the road ahead may not always be linear, our objective is straightforward," he said. "Ultimately, the actions we've taken this year are intended to preserve flexibility as we execute our strategy, continue investing in the business, and build a stronger company that is positioned to create long-term value."

The company attributed the 1.68% decline in net sales to  lower shipments in both the Americas and EMEA&APAC segments. Brand volume decreased 4.9%, including a 5.3% decrease in the Americas segment and a 3.8% decrease in the EMEA&APAC segment. Also affecting the results: unfavorable foreign currency impacts.

In the company's Americas segment, Net sales fell 1.2% in the third quarter, a result of a 2.9% drop in "financial volume." primarily due to  lower brand volume in the U.S. and industry softness in Canada, partially offset by the favorable timing of shipments. Americas brand volume decreased 5.3%, including a 5.6% decrease in U.S. brand volume driven by lower financial volume in our core and value brands as well as industry softness."

Price and sales mix favorably impacted net sales by 1.9%, primarily due to increased net pricing and favorable sales mix as a result of positive brand mix. Net sales per hectoliter increased 2.0% on a constant currency basis, the company said.

The company cut its 2026 guidance  due to the impacts of the global macroeconomic environment on the beer industry and on consumer behavior, along with persistent promotional activity in the U.K.  Here are Molson Goors' latest projections:

• Net sales: decline 1% to 2% on a constant currency basis compared to flat, plus or minus 1%, previously
• Underlying income (loss) before income taxes: decline 21% to 24% versus 2025 on a constant currency basis compared to a decline in the range of 15% to 18%, previously
• Underlying earnings per share: decline 16% to 19% versus 2025, compared to a decline in the range of 11% to 15%, previously
• Capital expenditures: $650 million incurred, plus or minus 5%
• Underlying free cash flow: $1.0 billion, plus or minus 10% compared to $1.1 billion, plus or minus 10%, previously
• Underlying depreciation and amortization: $720 million, plus or minus 5%
• Consolidated net interest expense: $260 million, plus or minus 5%.
• Underlying effective tax rate: in the range of 22% to 24%