Free cash flow was $325 million in Q2, strengthening sequentially, with expectations for acceleration in the second half and healthy full-year cash generation.
Gross margin contracted 110 basis points due to inflationary pressures but was offset by strong SG&A leverage and disciplined expense management, resulting in steady operating margins and double-digit EPS growth.
International segment net sales increased 6%, driven by pricing and volume mix, with operating income growth of 2.6% despite a challenging macro environment.
Keurig Dr Pepper delivered strong second quarter results with net sales increasing 7%, driven by price and volume mix across U.S. refreshment beverages, International, and sequential progress in coffee.
Leverage remains comfortable at 3.3x with a long-term goal of 2.5x or lower.
U.S. coffee net sales declined modestly by 0.2% but showed sequential improvement with net price realization strengthening to 3.6%, despite volume mix decline of 3.8%.
U.S. refreshment beverages net sales grew almost 11%, led by core strength and rapid expansion in white spaces like energy and sports hydration.
ADM reported adjusted earnings per share of $0.93 for Q2 2025 with total segment operating profit of $830 million.
AS&O segment operating profit was $379 million, down 17% year-over-year due to margin pressures from legislative and biofuel policy uncertainty.
Carbohydrate Solutions segment operating profit was $337 million, down 6%, with declines in EMEA due to higher corn costs and crop quality issues.
Cash flow from operations before working capital was down year-over-year due to lower segment profits, but inventory management improved with a $2.2 billion decrease in inventories.
Crushing subsegment operating profit declined 75% to $33 million, impacted by lower crush margins in soybeans and canola, especially in North America.
Leverage ratio was 2.1x at quarter end, with capital expenditures lowered to a range of $1.3 billion to $1.5 billion for 2025, down from prior guidance.
Nutrition segment revenues increased 5% to $2 billion, with operating profit up 5% to $114 million, driven by Flavors growth and Animal Nutrition margin improvements.
Refined Products and Other subsegment operating profit increased 14% to $156 million, helped by positive timing impacts despite lower biodiesel and refining margins.
Returned $495 million to shareholders in dividends during the first half of 2025.
Trailing four-quarter adjusted ROIC was 6.9%, and cash flow from operations before working capital changes was $1.2 billion for the first half of 2025.
Coors Banquet showed strong performance with 16 consecutive quarters of share growth and over 15% distribution growth in the first half of 2025.
Core power brands Coors Light, Miller Lite, and Coors Banquet collectively held a 15.2% volume share in the U.S. for the first half of 2025, up from 13.4% three years ago.
Despite the earnings downgrade, underlying free cash flow guidance remains reaffirmed at $1.3 billion, plus or minus 10%, supported by higher cash tax benefits and favorable working capital.
EMEA and APAC regions faced softness due to geopolitical and economic tensions, but premium brands like Madri and Carling remain segment leaders.
In Canada, Molson family brands posted volume share gains despite a challenging industry backdrop, with Coors Light maintaining the #1 light beer position.
Molson Coors reported a softer-than-expected U.S. beer industry performance with industry volume down around 5% in Q2, worse than the anticipated improvement to around -3%.
Net sales revenue guidance for 2025 was reduced to a decline of 3% to 4% on a constant currency basis, down from a previous low single-digit decline expectation.
The Midwest Premium aluminum cost spiked dramatically, with prices increasing over 180% since January, causing an incremental cost impact of $40 million to $55 million for the full year.
Underlying earnings per share (EPS) guidance was lowered to a decline of 7% to 10%, compared to prior expectations of low single-digit growth.
Underlying pretax income is now expected to decline 12% to 15%, a significant downgrade from the prior low single-digit decline forecast.
EPS grew 24.1% to $5.45 per diluted share, driven by higher gross margins and lower share count, partially offset by lower volumes and increased brand investments.
First half 2025 revenue grew 3.6%, gross margin was 49.1%, and EPS was $7.58, with shipments ahead of depletions.
Gross margin expanded by 380 basis points to 49.8%, benefiting from brewery efficiencies, procurement savings, price increases, and product mix, partially offset by inflation and tariffs.
In Q2 2025, depletions decreased 5% and shipments decreased 0.8% year-over-year, driven by declines in Truly Hard Seltzer and Sam Adams partially offset by growth in Sun Cruiser and Dogfish Head.
Operating cash flow exceeded $125 million in the first half, enabling $111 million in cash returns to shareholders year-to-date.
Revenue increased 1.5% due to pricing and favorable product mix despite lower volumes.
Core sales declined 4.4% in Q2, slightly below operating plan but within guidance, with first half 2025 core sales down 3.4%, an improvement from prior periods.
Net interest expense increased by $4 million to $82 million versus prior year.
Net leverage ratio was 5.5x in Q2, slightly above prior year, with expected year-end leverage ratio of about 4.5x.
Net sales declined 4.8% due to unfavorable foreign exchange and business exits.
Newell Brands reported Q2 2025 normalized operating margin of 10.7%, up 10 basis points year-over-year, driven by an 80 basis point increase in normalized gross margin to 35.6%, the highest in 4 years.
Normalized earnings per share were $0.24, at the top end of guidance despite a higher-than-expected tax rate of 19.2%.
Normalized operating margin expanded by 10 basis points to 10.7%, with A&P levels as a percentage of sales comparable to last year but overheads increased as a percentage of sales.
Operating cash flow was a $271 million outflow versus a $64 million inflow in prior year, impacted by seasonal factors and proactive inventory purchases ahead of tariff increases.
Adjusted EBITDA increased 2.5% to $146.6 million, and adjusted EPS rose 7.4% to $0.29, supported by fewer shares outstanding and productivity gains.
Free cash flow generation remained strong at $109.5 million in the first half of 2025, reflecting disciplined capital allocation and investments.
Global systemwide sales declined 1.8% in Q2 2025, driven by a 3.6% decline in U.S. same-restaurant sales, partially offset by 8.7% growth in International sales.
Returned $262 million to shareholders year-to-date through dividends and share repurchases, with plans to return approximately $325 million in 2025.
U.S. company-operated restaurant margin contracted by 30 basis points to 16.2%, impacted by higher commodity costs, wage inflation, and lower traffic.
Adjusted EBITDA decreased 38% to $35.9 million, and adjusted net income declined 45% to $20.9 million.
Basic earnings per share decreased to $0.67, and adjusted EPS decreased 43% to $0.97 per share.
Branded Spirits sales declined 5%, with premium plus portfolio sales increasing 1%, while mid and value-tier brands experienced double-digit declines.
Capital expenditures were $10.6 million in Q2 and $18.7 million year-to-date, with full-year 2025 capex guidance reduced to approximately $32.5 million.
Consolidated sales decreased 24% to $145.5 million in Q2 2025 compared to the prior year, driven primarily by a 46% decline in Distilling Solutions segment sales.
Gross profit decreased 30% to $58.4 million, with gross margin declining 350 basis points to 40.1%.
Ingredient Solutions sales increased 5%, led by a 13% rebound in specialty protein sales and a 4% decline in Fibersym branded specialty wheat starch sales.
Net debt leverage remained stable at approximately 1.8x with a cash position of $17.3 million at quarter-end.
Year-to-date operating cash flow increased to $56.4 million from $29.6 million last year, driven by favorable working capital changes.
Dafinchi
