Prodapt Announces Strategic Expansion in Alberta Through Partnership with Invest Alberta
'Invest Alberta's collaboration with Prodapt represents another step toward making Alberta a hub for innovation in AI and technology investments in Alberta. Their confidence in what Alberta has to offer is an indication that our province is going in the right direction in growing a cutting-edge tech ecosystem that signals to the world that we are ready for this kind of expansion. Prodapt's trust and collaboration help bring Alberta to the world, and equip our investors to develop global solutions based on AI technology,' says Rick Christiaanse, CEO of Invest Alberta.
Prodapt's expansion includes establishing a nearshore delivery center to serve North American clients, with a focus on AI, cloud, and digital transformation. The company will collaborate with Alberta's leading universities to develop AI consulting and advisory services, specializing in Sovereign AI, GenAI platforms, and next-generation software engineering.
'This expansion represents more than just growth — it's a commitment to building lasting partnerships in one of North America's most ambitious innovation ecosystems,' said Manish Vyas, CEO of Prodapt. 'We're excited to collaborate with government, academia, and local businesses to advance the future of technology and deliver meaningful impact across Alberta.'
Accelerating Digital Transformation in Western Canada
Rajiv Papneja, Chief Technology Officer at Prodapt, noted: 'Alberta serves as a catalyst for our vision around Sovereign AI and next-gen platform engineering. With strong university ecosystems and a government focused on digital innovation, we're positioned to co-create solutions in AI, automation, and cloud that will benefit both Canada and global markets.'
This initiative supports Alberta's strategic shift toward technology, clean energy, and AI-driven innovation, creating high-value opportunities for local talent and businesses. The university collaboration will include co-creating AI programs, offering real-world consulting projects, and developing a skilled workforce for tech roles.
Strengthening Local Talent and Innovation
The partnership strengthens Alberta's innovation landscape while positioning the province as a competitive destination for global technology investment.
'The support from Invest Alberta underscores our shared belief in Alberta's potential as a technology and talent hub. This MOU lays the foundation for a nearshore delivery center that will serve our North American clients, while fostering innovation through close collaboration with local universities and government programs,' said Sricharan Kuppam, Canada country head, Prodapt.
'As the province's engine for innovation, Alberta Innovates sees this MOU between Invest Alberta and Prodapt, as a big step forward for growing tech in Alberta,' says Mike Mahon, CEO Alberta Innovates. 'International partnerships like these are the key to diversifying and growing our economy. We couldn't be happier to welcome Prodapt to the ecosystem.'
About Prodapt
Prodapt is the largest specialized player in the Connectedness industry. As an AI-first strategic technology partner, Prodapt provides consulting, business reengineering, and managed services for the largest telecom and tech enterprises building networks and digital experiences of tomorrow. A ServiceNow-invested company, Prodapt has been recognized by Gartner as a Large, Telecom-Native, Regional IT Service Provider.
Connecting 1.1 billion people and 5.4 billion devices across the globe, Prodapt's clients include Rogers, Telus, Verizon, Vodafone, Liberty Global, Liberty Latin America, Claro, Lumen, Windstream, KPN, Virgin Media, British Telecom, Deutsche Telekom, Google, Amazon, PayPal, SoftBank, ServiceNow, Ciena, Adtran, Samsung and many more.
A 'Great Place To Work® Certified™' company, Prodapt employs over 6,000 technology and domain experts across the Americas, Europe, India, Africa, & Japan. Prodapt is part of the 130-year-old business conglomerate The Jhaver Group, which employs over 32,000 people across 80+ locations globally.
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13 minutes ago
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Stevanato Group Reports Revenue of €280.0 Million for the Second Quarter of 2025
PIOMBINO DESE, Italy--(BUSINESS WIRE)-- Stevanato Group S.p.A. (NYSE: STVN), a leading global provider of drug containment, drug delivery, and diagnostic solutions to the pharmaceutical, biotechnology, and life sciences industries, today announced its financial results for the second quarter of 2025. Second Quarter 2025 Highlights (comparisons to prior-year period) Revenue increased 8% to €280.0 million, and high-value solutions represented 42% of total revenue. Gross profit margin increased 210 basis points to 28.1%. Diluted earnings per share were €0.11; adjusted diluted earnings per share were €0.11. Adjusted EBITDA margin increased 240 basis points to 23.2%. The Company is maintaining its fiscal 2025 guidance, and continues to expect revenue in the range of €1.160 billion to €1.190 billion, adjusted EBITDA in the range of €288.5 million to €301.8 million, and adjusted diluted EPS in the range of €0.50 to €0.54. Second Quarter 2025 Results For the second quarter of 2025, revenue increased 8% year-over-year (10% on a constant currency basis) to €280.0 million, driven by a 10% increase in the Company's Biopharmaceutical and Diagnostic Solutions (BDS) Segment, which offset the 2% decline in the Engineering Segment. Revenue from high-value solutions increased to €116.8 million, representing 42% of total revenue for the second quarter of 2025. This growth was driven primarily by strong demand for high-value syringes, and to a lesser extent, EZ-fill ® cartridges and EZ-fill ® vials. Gross profit margin for the second quarter of 2025 increased by 210 basis points to 28.1%, compared with the same period last year. Margin expansion was driven by strong performance in the BDS Segment from the expected financial improvements at the Latina and Fishers facilities as volumes and revenue scale, and an increased mix of more accretive high-value solutions. This offset the lower gross profit margin from the Engineering Segment, which was due to an unfavorable project mix resulting from the timing of new orders. As a result, operating profit margin for the second quarter of 2025 increased 400 basis points to 14.8%, while adjusted operating profit margin rose to 15.5%, driven by a higher gross profit and benefits from cost management initiatives launched last year. Franco Stevanato, Chairman and Chief Executive Officer, stated, "We delivered another solid quarter of top-line growth, expanded margins, and we believe we remain on track to achieve our full-year guidance. As we advance our multi-year investment and optimization plans, we remain focused on disciplined execution, industry-leading innovation and continuing to meet the evolving needs of our customers." Biopharmaceutical and Diagnostic Solutions (BDS) Segment Revenue grew 10% (12% on a constant currency basis) to €243.5 million for the second quarter of 2025, compared with the same period last year, driven by growth in both high-value solutions and other containment and delivery solutions. Revenue from high-value solutions increased to 48% of BDS Segment revenue in the second quarter, led by strong growth in high-performance syringes and, to a lesser extent, EZ-fill ® cartridges and EZ-fill ® vials. Growth was underpinned by the increasing production capacity in high-value syringes in Latina and Fishers. Revenue from other containment and delivery solutions increased 6% to €126.7 million, driven by bulk syringes, cartridges, and contract manufacturing activities. For the second quarter of 2025, gross profit margin increased 350 basis points to 31.2% and operating profit margin rose by 460 basis points to 19.1%, driven by the financial improvements from the new facilities in Latina and Fishers as they gain scale, and a favorable mix of high-value solutions. Engineering Segment Revenue from the Engineering Segment decreased 2% to €36.5 million for the second quarter of 2025, driven by lower revenue from glass converting, which was partially offset by growth in device assembly and packaging. For the second quarter of 2025, gross profit margin for the Engineering Segment decreased to 6.6% and operating profit margin was negative 0.8%, due to an unfavorable project mix. This was due to a higher proportion of revenue from legacy projects and a lower volume of new orders, resulting from a shift in timing from projects initially forecasted in the second quarter, which are now expected to be secured in the second half of 2025. The Company continues to execute its business optimization plan, having completed the majority of the legacy projects in the first half of 2025 and remains on track to complete the remaining projects by the end of 2025. Balance Sheet and Cash Flow At June 30, 2025, the Company had cash and cash equivalents of €94.2 million and net debt of €312.4 million. In late July, the Company announced €200 million in financing to support growth investments in Italy and the United States. Capital expenditures totaled €69.1 million for the second quarter of 2025, as the Company continues to ramp-up capacity in response to customer demand for high-value solutions. In the second quarter of 2025, cash flow from operating activities was €44.9 million. Cash flow used for the purchase of property, plant, and equipment, and intangible assets totaled €60.3 million. The combination of increased cash flow from operations and lower capital expenditures drove a significant year-over-year improvement in free cash flow. This resulted in a negative free cash flow of €13 million for the second quarter of 2025, compared with a negative €46.1 million in the same period last year. The Company believes that it has adequate liquidity to fund its strategic priorities over the next twelve months through a combination of cash on hand, cash generated from operations, available credit lines, and the ability to access additional debt or equity financing. 2025 Guidance The Company is maintaining its fiscal 2025 guidance, and continues to expect: Revenue in the range of €1.160 billion to €1.190 billion; Adjusted EBITDA in the range of €288.5 million to €301.8 million; and Adjusted diluted EPS in the range of €0.50 to €0.54. Franco Stevanato concluded, "We operate in dynamic, high-growth markets, with capital investments strategically aligned to meet demand-driven needs. We believe our robust pipeline of long-term opportunities is fueled by powerful secular trends including pharmaceutical innovation and the rise in biologics. These macro trends align seamlessly with our core capabilities, and we believe the continued shift toward our premium offerings will support sustainable revenue growth. Backed by strong business fundamentals and a disciplined financial strategy, we have the flexibility to invest in growth while creating long-term value for our shareholders." Conference call: The Company will host a conference call and webcast at 8:30 a.m. (ET) on Tuesday, August 5, 2025, to discuss financial results. During the call, management will refer to a slide presentation which will be available on the morning of the call on the 'Financial Results' page under the Investor Relations section of the Company's website. Pre-registration: Participants who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. We encourage participants to pre-register for the conference call using the following link: Pre-registration for STVN Q2 2025 earnings webcast Webcast: A live, listen-only webcast of the call will be available at the following link: STVN Q2 2025 webcast. Dial in: Those who are unable to pre-register may dial in by calling: Questions during the call: Participants who wish to ask questions during the call should use the HD webphone link: STVN Q2 2025 Link for Questions Replay: The webcast will be archived for three months on the Company's Investor Relations section of its website. Forward-Looking Statements This press release may include forward-looking statements. The words "continues," "expect," "believe," "remain," "advance," "continuing," "increasing," "gain," "expected," "remains," "believes," "maintaining," and other similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's future financial performance, including revenue, operating expenses and ability to maintain profitability, and operational and commercial capabilities; the Company's expectations regarding the development of the industry and the competitive environment in which it operates; the expansion of the Company's plants and sites, and our expectations related to our capacity expansion; the global supply chain and the Company's committed orders; customer demand; the success of the Company's initiatives to optimize the industrial footprint, harmonize processes and enhance supply chain and logistics strategies; the Company's geographical and industrial footprint; and the Company's goals, strategies, and investment plans. The forward-looking statements in this press release are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future, and may cause the actual results, performance, or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as conditions in the U.S. capital markets, negative global economic conditions, inflation, trade war and global tariff policies, the impact of the conflict between Russia and the Ukraine, the evolving events in Israel and Gaza, supply chain and logistical challenges and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the geopolitical, social and regulatory framework in which the Company operates or in economic or technological trends or conditions. For a description of the risks that could cause the Company's future results to differ from those expressed in any such forward looking statements, refer to the risk factors discussed in our most recent annual report on Form 20-F filed on March 6, 2025, and our most recent filings with the U.S. Securities and Exchange Commission. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. Except as required by law, the Company assumes no obligation to update any such forward-looking statements. Non-GAAP Financial Information This press release contains non-GAAP financial measures. Please refer to the tables included in this press release for a reconciliation of non-GAAP financial measures. Management monitors and evaluates our operating and financial performance using several non-GAAP financial measures, including Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit, Adjusted Diluted EPS, CAPEX, Free Cash Flow, Net Cash/(Debt), and Capital Employed. The Company believes that these non-GAAP financial measures provide useful and relevant information regarding its performance and improve its ability to assess our financial condition. While similar measures are widely used in the industry in which the Company operates, the financial measures it uses may not be comparable to other similarly titled measures used by other companies, nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS. About Stevanato Group Founded in 1949, Stevanato Group is a leading global provider of drug containment, drug delivery and diagnostic solutions to the pharmaceutical, biotechnology, and life sciences industries. The Group delivers an integrated, end-to-end portfolio of products, processes, and services that address customer needs across the entire drug life cycle at each of the development, clinical and commercial stages. Stevanato Group's core capabilities in scientific research and development, its commitment to technical innovation, and its engineering excellence are central to its ability to offer value added solutions to clients. To learn more, visit: For the three months ended June 30, 2024 External Customers 222.4 37.2 — 259.6 Inter-Segment 0.6 42.4 (43.0 ) — Revenue 223.0 79.6 (43.0 ) 259.6 Gross Profit 61.7 8.2 (2.4 ) 67.5 Gross Profit Margin 27.7 % 10.3 % 26.0 % Operating Profit 32.3 2.1 (6.4 ) 28.0 Operating Profit Margin 14.5 % 2.6 % 10.8 % Expand For the six months ended June 30, 2025 External Customers 464.4 72.3 — 536.6 Inter-Segment 1.3 70.1 (71.4 ) — Revenue 465.6 142.4 (71.4 ) 536.6 Gross Profit 145.5 12.6 (9.5 ) 148.5 Gross Profit Margin 31.2 % 8.8 % 27.7 % Operating Profit 88.3 3.1 (15.4 ) 76.0 Operating Profit Margin 19.0 % 2.2 % 14.2 % Expand For the six months ended June 30, 2024 External Customers 421.3 74.3 — 495.6 Inter-Segment 1.2 82.6 (83.8 ) — Revenue 422.5 156.9 (83.8 ) 495.6 Gross Profit 115.8 21.6 (7.6 ) 129.7 Gross Profit Margin 27.4 % 13.8 % 26.2 % Operating Profit 60.5 7.3 (14.5 ) 53.3 Operating Profit Margin 14.3 % 4.6 % 10.7 % Expand Cash Flow (Amounts in € millions) For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Cash flow from operating activities 44.9 22.3 144.7 93.8 Cash flow used in investing activities (59.7 ) (69.5 ) (130.4 ) (171.6 ) Cash flow (used in)/ from financing activities 21.2 (59.4 ) (14.5 ) 87.5 Net change in cash and cash equivalents 6.5 (106.6 ) (0.2 ) 9.7 Expand Non-GAAP Financial Information This press release contains non-GAAP financial measures. Please refer to "Non-GAAP Financial Information" on page 4 and the tables included in this press release for a reconciliation of non-GAAP financial measures. Six months ended June 30, 2025 Biopharmaceutical and Diagnostic Solutions Engineering Consolidated Reported Revenue (IFRS GAAP) 464.4 72.3 536.6 Effect of changes in currency translation rates 4.3 — 4.3 Constant Currency Revenue (Non-IFRS GAAP) 468.7 72.3 540.9 Expand Reconciliation of EBITDA (Amounts in € millions) For the three months ended June 30, Change For the six months ended June 30, Change 2025 2024 % 2025 2024 % Net Profit 29.7 20.6 44.0 % 56.2 39.4 42.6 % Income Taxes 9.4 8.5 10.0 % 18.0 15.4 16.8 % Finance Income (9.2 ) (3.6 ) 156.9 % (15.2 ) (6.3 ) 142.5 % Finance Expenses 11.5 2.4 381.2 % 17.0 4.7 263.1 % Operating Profit 41.4 28.0 47.9 % 76.0 53.3 42.7 % Depreciation and Amortization and Impairment of PPE 21.6 20.8 3.5 % 42.2 42.5 (0.7 )% EBITDA 62.9 48.8 28.9 % 118.2 95.8 23.4 % Expand Reconciliation of Reported and Adjusted EBITDA, Operating Profit, Income Taxes, Net Profit, and Diluted EPS (Amounts in € millions, except per share data) Three months ended June 30, 2025 EBITDA Operating Profit Income Taxes (3) Net Profit Diluted EPS (EUR cents) Reported 62.9 41.4 9.4 29.7 0.11 Adjusting items: Start-up costs new plants (1) 1.3 1.3 0.3 0.9 0.00 Restructuring and related charges (2) 0.9 0.9 0.2 0.6 0.00 Adjusted 65.1 43.5 10.0 31.3 0.11 Adjusted Margin 23.2 % 15.5 % Expand Three months ended June 30, 2024 EBITDA Operating Profit Income Taxes (3) Net Profit Diluted EPS (EUR cents) Reported 48.8 28.0 8.5 20.6 0.08 Adjusting items: Start-up costs new plants (1) 3.0 3.0 0.8 2.2 0.01 Restructuring and related charges (2) 2.2 2.2 0.5 1.7 0.00 Adjusted 54.0 33.2 9.9 24.5 0.09 Adjusted Margin 20.8 % 12.8 % Expand Six months ended June 30, 2025 EBITDA Operating Profit Income Taxes (3) Net Profit Diluted EPS (EUR cents) Reported 118.2 76.0 18.0 56.2 0.21 Adjusting items: Start-up costs new plants (1) 2.1 2.1 0.6 1.5 0.01 Restructuring and related charges (2) 2.1 2.1 0.5 1.6 0.01 Adjusted 122.4 80.2 19.1 59.3 0.22 Adjusted Margin 22.8 % 14.9 % Expand Six months ended June 30, 2024 EBITDA Operating Profit Income Taxes (3) Net Profit Diluted EPS (EUR cents) Reported 95.8 53.3 15.4 39.4 0.15 Adjusting items: Start-up costs new plants (1) 5.7 5.7 1.5 4.2 0.02 Restructuring and related charges (2) 3.1 3.1 0.8 2.4 0.01 Adjusted 104.6 62.1 17.7 46.0 0.17 Adjusted Margin 21.1 % 12.5 % Expand (1) During the three and the six months ended June 30, 2025, the Group recorded EUR 1.3 million and EUR 2.1 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. These costs are primarily related to labor costs for training and travel of personnel who are in the learning and development phase and not active in the manufacturing of products. During the three and the six months ended June 30, 2024, the Group recorded EUR 3.0 million and EUR 5.7 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. (2) During the three and the six months ended June 30, 2025, the Group recorded EUR 0.9 million and EUR 2.1 million, respectively, of restructuring and related charges among cost of sales, general and administrative expenses. These are mainly employee costs related to the reorganization of certain business functions. During the three and the six months ended June 30, 2024, the Group recorded EUR 2.2 million and EUR 3.1 million, respectively, of restructuring and related charges among general and administrative expenses and research and development expenses. (3) The income tax adjustment is calculated by multiplying the applicable nominal tax rate to the adjusting items. Expand Capital Employed (Amounts in € millions) As of June 30, 2025 As of December 31, 2024 - Goodwill and intangible assets 83.5 83.6 - Right of use assets 13.4 15.7 - Property, plant, and equipment 1,280.3 1,248.4 - Financial assets - investments FVTPL 0.1 0.2 - Other non-current financial assets 13.4 5.4 - Deferred tax assets 99.7 95.3 Non-current assets excluding FV of derivative financial instruments 1,490.4 1,448.7 - Inventories 274.1 245.2 - Contract assets 175.3 168.5 - Trade receivables 242.3 296.0 - Trade payables (223.9 ) (231.0 ) - Advances from customers (25.2 ) (16.6 ) - Non-current advances from customers (51.1 ) (44.0 ) - Contract liabilities (10.2 ) (16.5 ) Trade working capital 381.3 401.6 - Tax receivables and other receivables 62.2 70.6 - Current financial receivables - rent to buy agreement 0.9 — - Non-current assets held for sale 0.2 0.2 - Tax payables and other current liabilities (141.6 ) (92.2 ) - Current provisions (5.0 ) (4.1 ) Net working capital 298.0 376.1 - Deferred tax liabilities (12.9 ) (12.6 ) - Employees benefits (6.7 ) (7.2 ) - Non-current provisions (2.9 ) (2.8 ) - Other non-current liabilities (55.6 ) (62.7 ) Total non-current liabilities and provisions (78.1 ) (85.3 ) Capital employed 1,710.3 1,739.4 Net (debt) /cash (312.4 ) (335.0 ) Total Equity (1,397.9 ) (1,404.4 ) Total equity and net (debt)/ cash (1,710.3 ) (1,739.4 ) Expand Free Cash Flow (Amounts in € millions) For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Net cash flow from operating activities 44.9 22.3 144.7 93.8 Interest paid 2.1 1.7 3.5 2.3 Interest received (0.1 ) (1.0 ) (1.0 ) (1.2 ) Purchase of property, plant, and equipment (57.6 ) (68.7 ) (128.0 ) (169.2 ) Proceeds from sale of property, plant, and equipment 0.4 3.0 1.4 3.0 Purchase of intangible assets (2.7 ) (3.4 ) (4.1 ) (5.5 ) Free Cash Flow (13.0 ) (46.1 ) 16.6 (76.8 ) Expand Net (Debt) / Net Cash (Amounts in € millions) As of June 30, As of December 31, 2025 2024 Non-current financial liabilities (342.6 ) (317.7 ) Current financial liabilities (75.6 ) (116.9 ) Other non-current financial assets - Fair value of derivatives financial instruments 0.1 — Other current financial assets other than financial receivables for rent to buy agreement 11.6 1.3 Cash and cash equivalents 94.2 98.3 Net (Debt)/ Cash (312.4 ) (335.0 ) Expand CAPEX (Amounts in € millions) For the three months ended June 30, Change For the six months ended June 30, Change 2025 2024 € 2025 2024 € Addition to Property, plant, and equipment 66.4 72.6 (6.2 ) 134.7 142.3 (7.6 ) Addition to Intangible Assets 2.7 3.3 (0.6 ) 4.1 5.5 (1.4 ) CAPEX 69.1 75.9 (6.8 ) 138.8 147.8 (9.0 ) Expand *Amounts may not add due to rounding Expand
Business Wire
13 minutes ago
- Business Wire
Molson Coors Beverage Company Reports 2025 Second Quarter Results
GOLDEN, Colo. & MONTRÉAL--(BUSINESS WIRE)--Molson Coors Beverage Company ("MCBC," "Molson Coors" or "the Company") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2025 second quarter. 2025 SECOND QUARTER FINANCIAL HIGHLIGHTS 1 Net sales decreased 1.6% reported and 2.6% in constant currency. U.S. GAAP income before income taxes decreased 0.9% to $554.9 million. Underlying (Non-GAAP) income before income taxes was $531.5 million, a decrease of 0.8% in constant currency. U.S. GAAP net income attributable to MCBC of $428.7 million, $2.13 per share on a diluted basis. Underlying (Non-GAAP) diluted EPS of $2.05 increased 6.8%. Updated or reaffirmed 2025 full year guidance for the following key financial metrics: Net sales: 3% to 4% decline on a constant currency basis, compared to low single-digit decline, previously Underlying (Non-GAAP) income (loss) before income taxes: 12% to 15% decline on a constant currency basis, compared to a low-single digit decline, previously Underlying (Non-GAAP) diluted earnings per share: 7% to 10% decline compared to a low single-digit growth, previously Underlying (Non-GAAP) net interest expense: $225 million, plus or minus 5%, compared to $215 million, plus or minus 5%, previously Underlying (Non-GAAP) free cash flow: $1.3 billion, plus or minus 10%, remains unchanged CEO AND CFO PERSPECTIVES Gavin Hattersley, President and Chief Executive Officer Statement: "We continue to view the incremental softness in the industry performance this year as cyclical, and we continue to believe in Molson Coors' ability to achieve its long-term growth objectives. That said, our second quarter financial results were impacted by the macroeconomic environment and its broad effects on the beer industry and consumer, our softer U.S. share performance, as well as the resulting impact of volume deleverage. Additionally, in the quarter we experienced expected headwinds primarily from the discontinuation of our contract brewing arrangements in the Americas at the end of 2024. This was all partially offset by strong price and mix growth across both business units, favorable timing of U.S. shipments and lower MG&A largely due to reduced incentive compensation and the timing of marketing spend. As a result of the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected U.S. share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum, in particular the Midwest Premium pricing, we have adjusted our 2025 full year top and bottom-line guidance. However, we are reaffirming our annual underlying free cash flow guidance of $1.3 billion plus or minus 10% due to expected higher cash tax benefits and favorable working capital. While navigating these macroeconomic pressures, we have continued to execute our Acceleration Plan and prudently invest behind our business and our brands to support long-term profitable growth. Collectively, we have held most of the share gains over the last three years for our core U.S. power brands – Coors Light, Miller Lite, and Coors Banquet. We remain committed to our premiumization plans: in EMEA&APAC behind the strength of Madri, in Canada with continued growth in Miller Lite and our flavor portfolio, and in the U.S. with Peroni and our partnership with Fever-Tree as well as continued focus against Blue Moon." Tracey Joubert, Chief Financial Officer Statement: "We are pleased with the strength of our balance sheet and cash generation, which is particularly important during a challenging macroeconomic environment. It has allowed us to continue to execute our strategic growth initiatives as well as return $500 million to shareholders for the first half of the year through a competitive dividend and accelerated pace of share repurchases. We are committed to protecting and growing our underlying free cash flow while making prudent capital allocation decisions that support the long-term health of our business and brands and returning even more cash to shareholders." For the Six Months Ended ($ in millions, except per share data) (Unaudited) June 30, 2025 June 30, 2024 Reported Increase (Decrease) Foreign Exchange Impact Constant Currency Increase (Decrease) (1) Net sales $ 5,504.9 $ 5,848.7 (5.9 )% $ 11.7 (6.1 )% U.S. GAAP income (loss) before income taxes $ 711.2 $ 825.3 (13.8 )% $ 4.1 (14.3 )% Underlying income (loss) before income taxes (1) $ 662.6 $ 790.0 (16.1 )% $ 4.8 (16.7 )% U.S. GAAP net income (loss) (2) $ 549.7 $ 634.8 (13.4 )% Per diluted share (4) $ 2.71 $ 2.99 (9.4 )% Underlying net income (loss) (1) $ 514.0 $ 607.0 (15.3 )% Per diluted share $ 2.54 $ 2.86 (11.2 )% Financial volume (3) 36.279 40.404 (10.2 )% Brand volume (3) 36.159 38.614 (6.4 )% The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. Expand (1) Represents income (loss) before income taxes and net income (loss) attributable to MCBC adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. (2) Net income (loss) attributable to MCBC. (3) See Worldwide and Segment Brand and Financial Volume in the Appendix for definitions of financial volume and brand volume as well as the reconciliation from financial volume to brand volume. Expand QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS SECOND QUARTER 2024 RESULTS) Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2025, compared to June 30, 2024 (in percentages): Net sales decreased 1.6%, driven by lower financial volumes, partially offset by favorable price and sales mix and favorable foreign currency impacts. Net sales decreased 2.6% in constant currency. Financial volumes decreased 7.0%, primarily due to lower shipments in both the Americas and EMEA&APAC segments. Brand volumes decreased 5.1%, including a 4.0% decrease in the Americas as well as a 7.8% decrease in EMEA&APAC. Price and sales mix favorably impacted net sales by 4.4%, primarily due to favorable sales mix and increased net pricing in both segments. Americas favorable sales mix was primarily driven by lower contract brewing volume. Net sales per hectoliter increased 5.8% reported and 4.7% on a constant currency basis. Cost of goods sold ("COGS"): decreased 0.2% on a reported basis, primarily due to lower financial volumes, partially offset by higher cost of goods sold per hectoliter and unfavorable foreign currency impacts of $21.3 million. COGS per hectoliter: increased 7.3% on a reported basis, primarily due to unfavorable mix driven by lower contract brewing volumes in the Americas segment and premiumization, volume deleverage, cost inflation related to materials and manufacturing expenses as well as unfavorable changes in our unrealized mark-to-market commodity derivative positions, partially offset by cost savings initiatives. Underlying (Non-GAAP) COGS per hectoliter: increased 4.9% in constant currency, primarily due to unfavorable mix driven by lower contract brewing volumes in the Americas segment and premiumization, volume deleverage as well as cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives. Marketing, general & administrative ("MG&A"): decreased 4.9% on a reported basis, primarily due to timing of marketing investment and lower general and administrative expenses as a result of lower incentive compensation expense, partially offset by unfavorable foreign currency impacts of $7.3 million. Underlying (Non-GAAP) MG&A: decreased 5.8% in constant currency. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes declined 0.9% on a reported basis, primarily due to lower financial volumes, cost inflation related to materials and manufacturing expenses as well as the unfavorable changes in our unrealized mark-to-market commodity derivative positions, partially offset by increased net pricing, favorable mix, lower MG&A expense, the favorable fair value adjustment of our investment in Fevertree Drinks plc and cost savings initiatives. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 0.8% in constant currency, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses, partially offset by increased net pricing, favorable mix, lower MG&A expense and cost savings initiatives. (1) See Appendix for definitions and reconciliations of non-GAAP financial measures. Expand The second quarter U.S. GAAP effective tax rate and Underlying (Non-GAAP) effective tax rate were relatively flat compared to the prior year. Net income (loss) attributable to MCBC per diluted share: Net income attributable to MCBC per diluted share increased 4.9%, primarily due to a decrease in the weighted average diluted shares outstanding driven by share repurchases. Underlying (Non-GAAP) net income (loss) attributable to MCBC per diluted share: Underlying net income attributable to MCBC per diluted share increased 6.8%, primarily due to a decrease in the weighted average diluted shares outstanding driven by share repurchases. QUARTERLY SEGMENT HIGHLIGHTS (VERSUS SECOND QUARTER 2024 RESULTS) Americas Segment Overview The following tables highlight the Americas segment results for the three and six months ended June 30, 2025, compared to June 30, 2024: For the Six Months Ended ($ in millions) (Unaudited) June 30, 2025 June 30, 2024 Reported % Change FX Impact Constant Currency % Change (2) Net sales (1) $ 4,386.6 $ 4,721.3 (7.1 ) $ (19.4 ) (6.7 ) Income (loss) before income taxes (1) $ 747.5 $ 807.7 (7.5 ) $ 0.3 (7.5 ) Underlying income (loss) before income taxes (1)(2) $ 717.0 $ 808.5 (11.3 ) $ 0.3 (11.4 ) The reported percent change and the constant currency percent change in the above tables are presented as (unfavorable) favorable. Expand (1) Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. (2) Represents income (loss) before income taxes adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. Expand Americas Segment Highlights (Versus Second Quarter 2024 Results) Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2025, compared to June 30, 2024 (in percentages): Net sales decreased 2.8%, driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix. Net sales decreased 2.6% in constant currency. Financial volumes decreased 6.6%, primarily due to lower U.S. brand volume and an approximate 3% impact from lower contract brewing volume related to the exit of contract brewing arrangements in both the U.S. and Canada at the end of 2024, partially offset by favorable timing of U.S. shipments. Americas brand volumes decreased 4.0%, including a 5.3% decrease in the U.S., impacted by the macroeconomic environment resulting in industry softness as well as lower share performance. Price and sales mix favorably impacted net sales by 4.0%, primarily due to favorable sales mix as a result of lower contract brewing volumes and positive brand mix as well as increased net pricing. Net sales per hectoliter increased 4.2% reported and 4.3% on a constant currency basis. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes increased 10.5% on a reported basis, primarily due to favorable mix, increased net pricing, lower MG&A expense, favorable unrealized fair value adjustment of the investment in Fevertree Drinks plc and cost savings initiatives, partially offset by lower financial volumes and cost inflation related to materials and manufacturing expenses. Lower MG&A spend was primarily due to timing of marketing investment and lower incentive compensation. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes increased 5.4% in constant currency, primarily due to favorable mix, increased net pricing, lower MG&A expense and cost savings initiatives, partially offset by lower financial volumes and cost inflation related to materials and manufacturing expenses. EMEA&APAC Segment Overview The following tables highlight the EMEA&APAC segment results for the three and six months ended June 30, 2025, compared to June 30, 2024: For the Six Months Ended ($ in millions) (Unaudited) June 30, 2025 June 30, 2024 Reported % Change FX Impact Constant Currency % Change (2) Net sales (1) $ 1,131.2 $ 1,138.0 (0.6 ) $ 31.1 (3.3 ) Income (loss) before income taxes (1) $ 45.6 $ 70.2 (35.0 ) $ 7.4 (45.6 ) Underlying income (loss) before income taxes (1)(2) $ 53.2 $ 63.7 (16.5 ) $ 7.9 (28.9 ) The reported percent change and the constant currency percent change in the above tables are presented as (unfavorable) favorable. Expand (1) Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. (2) Represents income (loss) before income taxes adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. Expand EMEA&APAC Segment Highlights (Versus Second Quarter 2024 Results) Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2025, compared to June 30, 2024 (in percentages): Net sales increased 3.0%, driven by favorable price and sales mix and favorable foreign currency impacts, partially offset by lower financial volumes. Net sales decreased 2.3% in constant currency. Financial and brand volumes decreased 7.8%, primarily due to lower volumes across all regions driven by soft market demand and a heightened competitive landscape. Price and sales mix favorably impacted net sales by 5.5%, primarily due to geographic mix, premiumization and higher factored brand volumes, as well as increased net pricing. Net sales per hectoliter increased 11.8% reported and 6.0% on a constant currency basis. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 20.2% on a reported basis primarily due to lower financial volumes and higher U.K. waste management fees as a result of the change in the extended producer responsibility regulations, partially offset by lower MG&A expense driven by lower incentive compensation and cost savings, increased net pricing and favorable mix, as well as favorable foreign currency impacts of $5.4 million. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 17.9% in constant currency, primarily due to lower financial volumes and higher U.K. waste management fees as a result of the change in the extended producer responsibility regulations, partially offset by lower MG&A expense driven by lower incentive compensation and cost savings, increased net pricing and favorable mix. CASH FLOW AND LIQUIDITY HIGHLIGHTS U.S. GAAP cash from operations: Net cash provided by operating activities of $627.6 million for the six months ended June 30, 2025, decreased $267.0 million compared to $894.6 million for the six months ended June 30, 2024. The decrease in net cash provided by operating activities was primarily due to lower net income adjusted for non-cash items, the unfavorable movement of working capital and higher interest paid, partially offset by lower income taxes paid. The unfavorable movement of working capital was primarily driven by the $60.6 million payment as final resolution of the Keystone litigation case and the timing of payables and inventories, partially offset by lower payments for prior year annual incentive compensation and the timing of receivables. Underlying (Non-GAAP) free cash flow: Cash provided of $293.5 million for the six months ended June 30, 2025, represents a decrease in cash provided of $211.5 million from the prior year, which was primarily due to a decline in operating cash flows, partially offset by cash impact of non-GAAP adjustment of $60.6 million payment as final resolution of the Keystone litigation case. Debt: Total debt as of June 30, 2025, was $6,319.3 million and cash and cash equivalents totaled $613.8 million, resulting in net debt of $5,705.5 million and a net debt to underlying EBITDA ratio of 2.41x. As of June 30, 2024, our net debt to underlying EBITDA ratio was 2.13x. Dividends: We paid cash dividends of $192.7 million and $188.4 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Share Repurchase Program: We paid $306.8 million and $375.3 million, including brokerage commissions, for share repurchases during the six months ended June 30, 2025 and June 30, 2024, respectively. 2025 OUTLOOK We have adjusted our 2025 guidance for certain key financial metrics due to the impacts of the global macroeconomic environment on the beer industry and consumer trends along with lower-than-expected U.S. share performance. While we have included in our guidance our best estimate of some of these factors, including the indirect tariff impacts on the pricing of aluminum, in particular the Midwest Premium, the impacts of these trends are difficult to predict and include inherent uncertainties that could impact our financial performance beyond what is contemplated in our guidance. Net sales: 3% to 4% decline on a constant currency basis, compared to low single-digit decline, previously Underlying (Non-GAAP) income (loss) before income taxes: 12%-15% decline on a constant currency basis, compared to a low-single digit decline, previously Underlying (Non-GAAP) diluted earnings per share: 7%-10% decline compared to a low single-digit growth, previously Underlying (Non-GAAP) net interest expense: $225 million, plus or minus 5%, compared to $215 million, plus or minus 5%, previously Capital expenditures: $650 million incurred, plus or minus 5% remained unchanged from the first quarter of 2025 Underlying (Non-GAAP) free cash flow: $1.3 billion, plus or minus 10% Underlying (Non-GAAP) depreciation and amortization: $675 million, plus or minus 5% Underlying (Non-GAAP) effective tax rate: in the range of 22% to 24% SUBSEQUENT EVENTS On July 16, 2025, our Board declared a dividend of $0.47 per share, to be paid on September 19, 2025, to shareholders of Class A and Class B common stock of record on September 5, 2025. Shareholders of exchangeable shares will receive the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.64 per share. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law in the U.S. The OBBBA permanently extends certain expiring provisions from the Tax Cuts and Jobs Act of 2017, including accelerated tax recovery for certain capital investments and research and development expenditures and the business interest expense limitation. Additionally, the OBBBA includes changes to the taxation of foreign income for U.S.-domiciled businesses. While we are currently evaluating the impact of the OBBBA to the Company, we do anticipate a decrease in our current year cash tax liability as a result of the OBBBA. NOTES Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all quarterly comparative results are for the Company's second quarter ended June 30, 2025, compared to the second quarter ended June 30, 2024. Some numbers may not sum due to rounding. 2025 SECOND QUARTER INVESTOR CONFERENCE CALL Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 8:30 a.m. Eastern Time today to discuss the Company's 2025 second quarter results. The live webcast will be accessible via our website, An online replay of the webcast is expected to be posted within two hours following the live webcast. The Company will post this release and related financial statements on its website today. OVERVIEW OF MOLSON COORS BEVERAGE COMPANY For more than two centuries, we have brewed beverages that unite people to celebrate all life's moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko to our above premium brands including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel's Summer Shandy, to our economy and value brands like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While our Company's history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer, spirits like Five Trail whiskey and non-alcoholic beverages. We also have partner brands, such as Simply Spiked, ZOA Energy, Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions. To learn more about Molson Coors Beverage Company, visit ABOUT MOLSON COORS CANADA INC. Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson Coors Beverage Company. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC's annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively. FORWARD-LOOKING STATEMENTS This press release includes 'forward-looking statements' within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "confidence," "view," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," "implies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the headings "CEO and CFO Perspectives" and "2025 Outlook," with respect to, among others, expectations and impacts of cost inflation and tariffs, limited consumer disposable income, consumer preferences, overall volume and market share trends, our competitive position, pricing trends, macroeconomic forces, beverage industry trends, cost reduction strategies, execution of our Acceleration Plan, shipment levels and profitability, the sufficiency of capital resources, anticipated results, expectations for funding future capital expenditures and operations, effective tax rate, debt service capabilities, timing and amounts of debt and leverage levels, Preserving the Planet and related initiatives, expectations regarding the impact of the OBBBA on our current year cash tax liability and expectations regarding future dividends and share repurchases. In addition, statements that we make in this press release that are not statements of historical fact may also be forward-looking statements. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's historical experience, and present projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission ('SEC'), including the risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. MARKET AND INDUSTRY DATA The market and industry data used, if any, in this press release are based on independent industry publications, customer specific data, trade or business organizations, reports by market research firms and other published statistical information from third parties, including Circana (formerly Information Resources, Inc.) for U.S. market data and Beer Canada for Canadian market data (collectively, the 'Third Party Information'), as well as information based on management's good faith estimates, which we derive from our review of internal information and independent sources. Such Third Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable. APPENDIX BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In millions, except par value) (Unaudited) As of June 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 613.8 $ 969.3 Trade receivables, net 1,021.7 693.1 Other receivables, net 133.7 149.8 Inventories, net 902.0 727.8 Other current assets, net 404.9 308.4 Total current assets 3,076.1 2,848.4 Property, plant and equipment, net 4,633.4 4,460.4 Goodwill 5,592.0 5,582.3 Other intangibles, net 12,394.4 12,195.2 Other assets 1,130.8 978.0 Total assets $ 26,826.7 $ 26,064.3 Liabilities and equity Current liabilities Accounts payable and other current liabilities $ 3,178.3 $ 3,013.0 Current portion of long-term debt and short-term borrowings 62.3 32.2 Total current liabilities 3,240.6 3,045.2 Long-term debt 6,257.0 6,113.9 Pension and postretirement benefits 415.1 416.7 Deferred tax liabilities 2,794.2 2,733.4 Other liabilities 323.1 302.4 Total liabilities 13,030.0 12,611.6 Redeemable noncontrolling interest 160.4 168.5 Molson Coors Beverage Company stockholders' equity Capital stock Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued) — — Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively) — — Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 216.1 shares and 215.5 shares, respectively) 2.2 2.1 Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) 100.8 100.8 Class B exchangeable shares, no par value (issued and outstanding: 7.1 shares and 7.2 shares, respectively) 266.9 271.1 Paid-in capital 7,230.6 7,223.6 Retained earnings 8,597.5 8,238.0 Accumulated other comprehensive income (loss) (1,066.9 ) (1,362.4 ) Class B common stock held in treasury at cost (30.3 shares and 24.8 shares, respectively) (1,690.4 ) (1,380.8 ) Total Molson Coors Beverage Company stockholders' equity 13,440.7 13,092.4 Noncontrolling interests 195.6 191.8 Total equity 13,636.3 13,284.2 Total liabilities and equity $ 26,826.7 $ 26,064.3 Expand CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) For the Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities Net income (loss) including noncontrolling interests $ 547.4 $ 635.2 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization 350.4 336.7 Amortization of debt issuance costs and discounts 2.6 2.7 Share-based compensation 18.9 24.2 (Gain) loss on sale or impairment of property, plant, equipment and other assets, net (6.1 ) (6.4 ) Unrealized (gain) loss on foreign currency fluctuations, fair value investments and derivative instruments, net (77.4 ) (28.0 ) Equity (income) loss (8.5 ) 2.8 Income tax (benefit) expense 163.8 190.1 Income tax (paid) received (58.0 ) (105.2 ) Interest expense, excluding amortization of debt issuance costs and discounts 120.3 110.5 Interest paid (137.2 ) (102.5 ) Other non-cash items, net (2.1 ) — Change in current assets and liabilities (net of impact of business combinations) and other (286.5 ) (165.5 ) Net cash provided by (used in) operating activities 627.6 894.6 Cash flows from investing activities Additions to property, plant and equipment (400.6 ) (392.2 ) Proceeds from sales of property, plant, equipment and other assets 4.4 10.3 Acquisition of business, net of cash acquired (20.8 ) — Other (82.7 ) 0.5 Net cash provided by (used in) investing activities (499.7 ) (381.4 ) Cash flows from financing activities Dividends paid (192.7 ) (188.4 ) Payments for purchases of treasury stock (306.8 ) (375.3 ) Payments on debt and borrowings (5.8 ) (3.4 ) Proceeds on debt and borrowings — 863.7 Other (0.9 ) (11.0 ) Net cash provided by (used in) financing activities (506.2 ) 285.6 Effect of foreign exchange rate changes on cash and cash equivalents 22.8 (20.4 ) Net increase (decrease) in cash and cash equivalents (355.5 ) 778.4 Balance at beginning of year 969.3 868.9 Balance at end of period $ 613.8 $ 1,647.3 Expand SUMMARIZED SEGMENT RESULTS (hectoliter volume and $ in millions) (Unaudited) Americas Q2 2025 Q2 2024 Reported % Change FX Impact Constant Currency % Change (3) YTD 2025 YTD 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales (1) $ 2,504.8 $ 2,575.9 (2.8 ) $ (3.5 ) (2.6 ) $ 4,386.6 $ 4,721.3 (7.1 ) $ (19.4 ) (6.7 ) COGS (1)(2) $ (1,468.4 ) $ (1,525.7 ) 3.8 $ 2.4 3.6 $ (2,638.3 ) $ (2,841.2 ) 7.1 $ 12.5 6.7 MG&A $ (526.4 ) $ (560.7 ) 6.1 $ 1.0 5.9 $ (1,040.7 ) $ (1,067.4 ) 2.5 $ 7.1 1.8 Income (loss) before income taxes $ 538.2 $ 487.1 10.5 $ 0.5 10.4 $ 747.5 $ 807.7 (7.5 ) $ 0.3 (7.5 ) Underlying income (loss) before income taxes (3) $ 514.2 $ 487.4 5.5 $ 0.5 5.4 $ 717.0 $ 808.5 (11.3 ) $ 0.3 (11.4 ) Financial volume (1)(4) 15.307 16.396 (6.6 ) 27.049 30.306 (10.7 ) Brand volume 15.038 15.670 (4.0 ) 26.969 28.561 (5.6 ) EMEA&APAC Q2 2025 Q2 2024 Reported % Change FX Impact Constant Currency % Change (3) YTD 2025 YTD 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales (1) $ 703.9 $ 683.3 3.0 $ 36.3 (2.3 ) $ 1,131.2 $ 1,138.0 (0.6 ) $ 31.1 (3.3 ) COGS (1)(2) $ (465.4 ) $ (431.9 ) (7.8 ) $ (23.7 ) (2.3 ) $ (772.4 ) $ (753.5 ) (2.5 ) $ (19.5 ) 0.1 MG&A $ (166.7 ) $ (167.8 ) 0.7 $ (8.3 ) 5.6 $ (305.6 ) $ (315.7 ) 3.2 $ (5.7 ) 5.0 Income (loss) before income taxes $ 64.8 $ 81.2 (20.2 ) $ 5.4 (26.8 ) $ 45.6 $ 70.2 (35.0 ) $ 7.4 (45.6 ) Underlying income (loss) before income taxes (3) $ 72.4 $ 81.0 (10.6 ) $ 5.9 (17.9 ) $ 53.2 $ 63.7 (16.5 ) $ 7.9 (28.9 ) Financial volume (1)(4) 5.564 6.037 (7.8 ) 9.233 10.101 (8.6 ) Brand volume 5.574 6.045 (7.8 ) 9.190 10.053 (8.6 ) Unallocated & Eliminations Q2 2025 Q2 2024 Reported % Change FX Impact Constant Currency % Change (3) YTD 2025 YTD 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales $ (7.9 ) $ (6.9 ) (14.5 ) $ — (14.5 ) $ (12.9 ) $ (10.6 ) (21.7 ) — (21.7 ) COGS (2) $ 14.9 $ 35.2 (57.7 ) $ — (57.7 ) $ 38.6 $ 39.4 (2.0 ) $ (0.2 ) (1.5 ) Income (loss) before income taxes $ (48.1 ) $ (8.4 ) (472.6 ) $ (2.0 ) (448.8 ) $ (81.9 ) $ (52.6 ) (55.7 ) $ (3.6 ) (48.9 ) Underlying income (loss) before income taxes (3) $ (55.1 ) $ (37.2 ) (48.1 ) $ (2.0 ) (42.7 ) $ (107.6 ) $ (82.2 ) (30.9 ) $ (3.4 ) (26.8 ) Financial volume (0.001 ) (0.003 ) N/M (0.003 ) (0.003 ) N/M Consolidated Q2 2025 Q2 2024 Reported % Change FX Impact Constant Currency % Change (3) YTD 2025 YTD 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales $ 3,200.8 $ 3,252.3 (1.6 ) $ 32.8 (2.6 ) $ 5,504.9 $ 5,848.7 (5.9 ) $ 11.7 (6.1 ) COGS $ (1,918.9 ) $ (1,922.4 ) 0.2 $ (21.3 ) 1.3 $ (3,372.1 ) $ (3,555.3 ) 5.2 $ (7.2 ) 5.4 MG&A $ (693.1 ) $ (728.5 ) 4.9 $ (7.3 ) 5.9 $ (1,346.3 ) $ (1,383.1 ) 2.7 $ 1.4 2.6 Income (loss) before income taxes $ 554.9 $ 559.9 (0.9 ) $ 3.9 (1.6 ) $ 711.2 $ 825.3 (13.8 ) $ 4.1 (14.3 ) Underlying income (loss) before income taxes (3) $ 531.5 $ 531.2 0.1 $ 4.4 (0.8 ) $ 662.6 $ 790.0 (16.1 ) $ 4.8 (16.7 ) Financial volume (4) 20.870 22.430 (7.0 ) 36.279 40.404 (10.2 ) Brand volume 20.612 21.715 (5.1 ) 36.159 38.614 (6.4 ) N/M = not meaningful The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. Expand (1) Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. (2) The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. (3) Represents income (loss) before taxes adjusted for non-GAAP items. See the Non-GAAP Measures and Reconciliations section for definitions and reconciliations of non-GAAP financial measures including constant currency. (4) Financial volume in hectoliters for the Americas and EMEA&APAC segments excludes royalty volume of 0.693 million hectoliters and 0.336 million hectoliters, respectively, for the three months ended June 30, 2025 and excludes royalty volume of 0.578 million hectoliters and 0.325 million hectoliters, respectively, for the three months ended June 30, 2024. Financial volume in hectoliters for the Americas and EMEA&APAC segments excludes royalty volume of 1.366 million hectoliters and 0.556 million hectoliters, respectively, for the six months ended June 30, 2025 and excludes royalty volume of 1.169 million hectoliters and 0.543 million hectoliters respectively, for the six months ended June 30, 2024. Expand For the Six Months Ended Americas June 30, 2025 June 30, 2024 Change Financial Volume 27.049 30.306 (10.7 )% Contract brewing and wholesale/factored volume (0.800 ) (1.800 ) (55.6 )% Royalty volume 1.366 1.169 16.9 % Sales-To-Wholesaler to Sales-To-Retail adjustment and other (1) (0.646 ) (1.114 ) (42.0 )% Total Americas Brand Volume 26.969 28.561 (5.6 )% EMEA&APAC June 30, 2025 June 30, 2024 Change Financial Volume 9.233 10.101 (8.6 )% Contract brewing and wholesale/factored volume (0.599 ) (0.591 ) 1.4 % Royalty volume 0.556 0.543 2.4 % Total EMEA&APAC Brand Volume 9.190 10.053 (8.6 )% Consolidated June 30, 2025 June 30, 2024 Change Financial Volume 36.279 40.404 (10.2 )% Contract brewing and wholesale/factored volume (1.399 ) (2.391 ) (41.5 )% Royalty volume 1.922 1.712 12.3 % Sales-To-Wholesaler to Sales-To-Retail adjustment and other (0.643 ) (1.111 ) (42.1 )% Total Worldwide Brand Volume 36.159 38.614 (6.4 )% Expand (1) Includes gross inter-segment volumes which are eliminated in the consolidated totals. Expand Worldwide brand volume (or "brand volume" when discussed by segment) reflects owned or actively managed brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Financial volume represents owned or actively managed brands sold to unrelated external customers within our geographical markets, net of returns and allowances as well as contract brewing, wholesale non-owned brand volume and company-owned distribution volume. Contract brewing and wholesale/factored volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Factored volume in our EMEA&APAC segment represents the distribution of beer, wine, spirits and other products owned and produced by other companies to the on-premise channel such as bars and restaurants, which is a common arrangement in the U.K. Royalty volume consists of our brands produced and sold by third parties under various license and contract brewing agreements and, because this is owned volume, it is included in worldwide brand volume. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler ("STW") volume to Sales-to-Retailer ("STR") volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends. We also utilize net sales per hectoliter and COGS per hectoliter, as well as the year over year changes in these metrics, as key metrics for analyzing our results. These metrics are calculated as net sales and COGS per our unaudited condensed consolidated statements of operations divided by financial volume for the respective period. We believe these metrics are important and useful for investors and management because it provides an indication of the trends of price and sales mix on our net sales and the trends of sales mix and other cost impacts on our COGS. NON-GAAP MEASURES AND RECONCILIATIONS Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. ('U.S. GAAP'), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segment business performance. These non-GAAP measures should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We have provided reconciliations of all historical non-GAAP measures to their nearest U.S. GAAP measure and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. Our management uses these metrics to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the Board of Directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe these measures are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance. Underlying Income (Loss) before Income Taxes (Closest GAAP Metric: Income (Loss) Before Income Taxes) – Measure of the Company's or segment's income (loss) before income taxes excluding the impact of certain non-GAAP adjustment items from our U.S. GAAP financial statements. Non-GAAP adjustment items include goodwill and other intangible and tangible asset impairments, certain restructuring and integration related costs, unrealized mark-to-market gains and losses, adjustments to the redemption value of mandatorily redeemable noncontrolling interests, potential or incurred losses related to certain litigation accruals and settlements, impacts of settlement charges related to annuity purchases and gains and losses on sales of non-operating assets, among other items included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective, involve significant management judgment and can vary substantially from company to company. Underlying COGS (Closest GAAP Metric: COGS) – Measure of the Company's COGS adjusted to exclude non-GAAP adjustment items (as defined above). Non-GAAP adjustment items include, among other items, unrealized mark-to-market gains and losses on our commodity derivative instruments, which are economic hedges, and are recorded through COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivatives without the resulting unrealized mark-to-market volatility. We also use underlying COGS per hectoliter, as well as the year over year change in such metric, as a key metric for analyzing our results. This metric is calculated as underlying COGS divided by financial volume for the respective period. Underlying MG&A (Closest GAAP Metric: MG&A) – Measure of the Company's MG&A expense excluding the impact of certain non-GAAP adjustment items (as defined above). Underlying net interest income (expense), net (Closest GAAP Metric: Interest income (expense), net) – Measure of the Company's net interest expense adjusted to exclude adjustments to the redemption value of mandatorily redeemable noncontrolling interests. Underlying net income (loss) attributable to MCBC (Closest GAAP Metric: Net income (loss) attributable to MCBC) – Measure of net income (loss) attributable to MCBC excluding the impact of income (loss) before income tax non-GAAP adjustment items (as defined above), adjustments to the carrying value of redeemable noncontrolling interests resulting from subsequent changes in the redemption value of such interests, the related tax effects of non-GAAP adjustment items and certain other discrete tax items. Underlying net income (loss) attributable to MCBC per diluted share (also referred to as Underlying Diluted Earnings per Share) (Closest GAAP Metric: Net income (loss) attributable to MCBC per diluted share) – Measure of underlying net income (loss) attributable to MCBC (as defined above) per diluted share. If applicable, a reported net loss attributable to MCBC per diluted share is calculated using the basic share count due to dilutive shares being antidilutive. If underlying net income (loss) attributable to MCBC becomes income excluding the impact of our non-GAAP adjustment items, we include the incremental dilutive shares, using the treasury stock method, into the dilutive shares outstanding. Underlying effective tax rate (Closest GAAP Metric: Effective Tax Rate) – Measure of the Company's effective tax rate excluding the related tax impact of pre-tax non-GAAP adjustment items (as defined above) and certain other discrete tax items. Discrete tax items include certain significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. Underlying free cash flow (Closest GAAP Metric: Net Cash Provided by (Used in) Operating Activities) – Measure of the Company's operating cash flow calculated as Net Cash Provided by (Used In) Operating Activities less Additions to property, plant and equipment and excluding the pre-tax cash flow impact of certain non-GAAP adjustment items (as defined above). We consider underlying free cash flow an important measure of our ability to generate cash, grow our business and enhance shareholder value, driven by core operations and after adjusting for non-GAAP adjustment items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. Underlying depreciation and amortization (Closest GAAP Metric: Depreciation & Amortization) – Measure of the Company's depreciation and amortization excluding the impact of non-GAAP adjustment items (as defined above). These adjustments primarily consist of accelerated depreciation or amortization taken related to the Company's strategic exit or restructuring activities. Net debt and net debt to underlying earnings before interest, taxes, depreciation, and amortization ("underlying EBITDA") (Closest GAAP Metrics: Cash, Debt, & Net Income (Loss)) – Measure of the Company's leverage calculated as net debt (defined as current portion of long-term debt and short-term borrowings plus long-term debt less cash and cash equivalents) divided by the trailing twelve month underlying EBITDA. Underlying EBITDA is calculated as Net income (loss) excluding Interest expense (income), net, Income tax expense (benefit), depreciation and amortization and the impact of non-GAAP adjustment items (as defined above). Effective January 1, 2025, on a prospective basis, Underlying EBITDA excludes amortization of cloud-based software implementation costs. This measure is not the same as the Company's maximum leverage ratio as defined under its revolving credit facility, which allows for other adjustments in the calculation of net debt to EBITDA. Constant currency - Constant currency is a non-GAAP measure utilized to measure performance, excluding the impact of translational and certain transactional foreign currency movements, and is intended to be indicative of results in local currency. As we operate in various foreign countries where the local currency may strengthen or weaken significantly versus the U.S. dollar or other currencies used in operations, we utilize a constant currency measure as an additional metric to evaluate the underlying performance of each business without consideration of foreign currency movements. We present all percentage changes for net sales, underlying COGS, underlying MG&A and underlying income (loss) before income taxes in constant currency and calculate the impact of foreign exchange by translating our current period local currency results (that also include the impact of the comparable prior period currency hedging activities) at the average exchange rates during the respective period throughout the year used to translate the financial statements in the comparable prior year period. The result is the current period results in U.S. dollars, as if foreign exchange rates had not changed from the prior year period. Additionally, we exclude any transactional foreign currency impacts, reported within the other non-operating income (expense), net line item, from our current period results. Our guidance or long-term targets for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide guidance for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. (In millions, except per share data) (Unaudited) For the Three Months Ended June 30, 2024 Cost of goods sold Marketing, general and administrative expenses Income (loss) before income taxes Net income (loss) attributable to MCBC Net income (loss) attributable to MCBC per diluted share Reported (U.S. GAAP) $ (1,922.4 ) $ (728.5 ) $ 559.9 $ 427.0 $ 2.03 Non-GAAP Adjustments (pre-tax) Restructuring — — (0.2 ) (0.2 ) — (Gains) losses on disposals and other — — 0.1 0.1 — Unrealized mark-to-market (gains) losses (28.8 ) — (28.8 ) (28.8 ) (0.14 ) Other items — 0.4 0.2 0.2 — Tax effects of income before income tax non-GAAP adjustments and discrete tax items — — — 5.9 0.03 Underlying (Non-GAAP) $ (1,951.2 ) $ (728.1 ) $ 531.2 $ 404.2 $ 1.92 Expand (In millions, except per share data) (Unaudited) For the Six Months Ended June 30, 2025 Cost of goods sold Marketing, general and administrative expenses Income (loss) before income taxes Net income (loss) attributable to MCBC Diluted earnings per share Non-GAAP adjustments (pre-tax) Restructuring (2) — — 28.0 28.0 0.14 (Gains) losses on disposals and other — — 0.6 0.6 — Unrealized mark-to-market (gains) losses (25.7 ) — (25.7 ) (25.7 ) (0.13 ) Other items (1) — (0.2 ) (51.5 ) (51.5 ) (0.25 ) Tax effects of income before income tax non-GAAP adjustments and discrete tax items — — — 11.9 0.06 Adjustment for redeemable noncontrolling interest recorded to the redemption value — — — 1.0 — Underlying (Non-GAAP) $ (3,397.8 ) $ (1,346.5 ) $ 662.6 $ 514.0 $ 2.54 Expand (In millions, except per share data) (Unaudited) For the Six Months Ended June 30, 2024 Cost of goods sold Marketing, general and administrative expenses Income (loss) before income taxes Net income (loss) attributable to MCBC Diluted earnings per share Reported (U.S. GAAP) $ (3,555.3 ) $ (1,383.1 ) $ 825.3 $ 634.8 $ 2.99 Non-GAAP adjustments (pre-tax) Restructuring — — (1.1 ) (1.1 ) (0.01 ) (Gains) losses on disposals and other — — (5.3 ) (5.3 ) (0.02 ) Unrealized mark-to-market (gains) losses (29.6 ) — (29.6 ) (29.6 ) (0.14 ) Other items — 0.9 0.7 0.7 — Tax effects of income before income tax non-GAAP adjustments and discrete tax items — — — 7.5 0.04 Underlying (Non-GAAP) $ (3,584.9 ) $ (1,382.2 ) $ 790.0 $ 607.0 $ 2.86 Expand (1) During the first quarter of 2025, we made an investment in Fevertree Drinks plc and hold a minority interest. As a result, for the three and six months ended June 30, 2025, we recorded an unrealized fair value adjustment of $25.5 million and $51.2 million, respectively. (2) During the third quarter of 2024, we made the decision to wind down or sell certain U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation of $17.9 million for the six months ended June 30, 2025. Expand Reconciliation to Underlying (Non-GAAP) Income (Loss) Before Income Taxes by Segment (In millions) (Unaudited) For the Three Months Ended June 30, 2025 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 538.2 $ 64.8 $ (48.1 ) $ 554.9 Cost of goods sold (1) — — (7.0 ) (7.0 ) Marketing, general & administrative (0.1 ) — — (0.1 ) Other non-GAAP adjustment items (2) (23.9 ) 7.6 — (16.3 ) Total non-GAAP adjustment items $ (24.0 ) $ 7.6 $ (7.0 ) $ (23.4 ) Underlying (Non-GAAP) income (loss) before income taxes $ 514.2 $ 72.4 $ (55.1 ) $ 531.5 Expand (In millions) (Unaudited) For the Three Months Ended June 30, 2024 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 487.1 $ 81.2 $ (8.4 ) $ 559.9 Cost of goods sold (1) — — (28.8 ) (28.8 ) Marketing, general & administrative 0.5 0 (0.1 ) — 0.4 Other non-GAAP adjustment items (2) (0.2 ) (0.1 ) — (0.3 ) Total non-GAAP adjustment items $ 0.3 $ (0.2 ) $ (28.8 ) $ (28.7 ) Underlying (Non-GAAP) income (loss) before income taxes $ 487.4 $ 81.0 $ (37.2 ) $ 531.2 Expand (In millions) (Unaudited) For the Six Months Ended June 30, 2025 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 747.5 $ 45.6 $ (81.9 ) $ 711.2 Cost of goods sold (1) — — (25.7 ) (25.7 ) Marketing, general & administrative (0.2 ) — — (0.2 ) Other non-GAAP adjustment items (2) (30.3 ) 7.6 — (22.7 ) Total non-GAAP adjustment items $ (30.5 ) $ 7.6 $ (25.7 ) $ (48.6 ) Underlying (Non-GAAP) income (loss) before income taxes $ 717.0 $ 53.2 $ (107.6 ) $ 662.6 Expand (In millions) (Unaudited) For the Six Months Ended June 30, 2024 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 807.7 $ 70.2 $ (52.6 ) $ 825.3 Cost of goods sold (1) — — (29.6 ) (29.6 ) Marketing, general & administrative 1.0 (0.1 ) — 0.9 Other non-GAAP adjustment items (2) (0.2 ) (6.4 ) — (6.6 ) Total non-GAAP adjustment items $ 0.8 $ (6.5 ) $ (29.6 ) $ (35.3 ) Underlying (Non-GAAP) income (loss) before income taxes $ 808.5 $ 63.7 $ (82.2 ) $ 790.0 Expand (1) Reflects changes in our mark-to-market positions on our derivative hedges recorded as COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. (2) See the Reconciliations by Line Item table for further information on our non-GAAP adjustments. Expand Underlying (Non-GAAP) Depreciation and Amortization Reconciliation June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 U.S. GAAP depreciation and amortization $ 170.1 $ 167.7 $ 350.4 $ 336.7 Accelerated depreciation (1) — — (17.9 ) — Underlying (Non-GAAP) depreciation and amortization $ 170.1 $ 167.7 $ 332.5 $ 336.7 Expand (1) During the third quarter of 2024, we made the decision to wind down or sell certain U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation of $17.9 million for the six months ended June 30, 2025. Expand Effective Tax Rate Reconciliation (Unaudited) For the Three Months Ended June 30, 2025 June 30, 2024 U.S. GAAP Effective Tax Rate 24 % 24 % Tax effect of non-GAAP adjustment items and discrete tax items (1) (1 %) — % Underlying (Non-GAAP) Effective Tax Rate 23 % 24 % Expand (1) Adjustments related to the tax effect of non-GAAP adjustment items, as well as certain discrete tax items excluded from our underlying effective tax rate. Discrete tax items include certain significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. Expand Underlying (Non-GAAP) Free Cash Flow (In millions) (Unaudited) For the Six Months Ended June 30, 2025 June 30, 2024 U.S. GAAP Net Cash Provided by (Used In) Operating Activities $ 627.6 $ 894.6 Additions to property, plant and equipment, net (1) (400.6 ) (392.2 ) Cash impact of non-GAAP adjustment items (2) 66.5 2.6 Underlying (Non-GAAP) Free Cash Flow $ 293.5 $ 505.0 Expand (1) Included in net cash provided by (used in) investing activities. (2) Included in net cash provided by (used in) operating activities and reflects the $60.6 million payment as final resolution of the Keystone litigation case paid during the three months ended March 31, 2025. Additionally, includes costs paid for restructuring activities for the six months ended June 30, 2025 and June 30, 2024. Expand Net Debt and Net Debt to Underlying (Non-GAAP) EBITDA Ratio (In millions except net debt to underlying EBITDA ratio) (Unaudited) As of June 30, 2025 June 30, 2024 U.S. GAAP Current portion of long-term debt and short-term borrowings $ 62.3 $ 894.2 Add: Long-term debt 6,257.0 6,161.5 Less: Cash and cash equivalents 613.8 1,647.3 Net debt $ 5,705.5 $ 5,408.4 Q2 Underlying EBITDA $ 763.9 750.1 Q1 Underlying EBITDA 353.3 476.2 Q4 Underlying EBITDA 558.5 566.1 Q3 Underlying EBITDA 692.3 742.9 Non-GAAP Underlying EBITDA (1) $ 2,368.0 $ 2,535.3 Net debt to underlying (Non-GAAP) EBITDA ratio 2.41 2.13 Expand (1) Represents underlying EBITDA on a trailing twelve month basis. Expand Underlying (Non-GAAP) EBITDA Reconciliation (In millions) (Unaudited) For the Three Months Ended June 30, 2025 June 30, 2024 U.S. GAAP Net income (loss) 424.3 425.3 Interest expense (income), net 58.5 51.2 Income tax expense (benefit) 130.6 134.6 Depreciation and amortization 173.9 167.7 Non-GAAP adjustments to arrive at underlying EBITDA (1) (23.4 ) (28.7 ) Underlying (Non-GAAP) EBITDA $ 763.9 $ 750.1 Expand (1) Includes pre-tax non-GAAP adjustments to Net income (loss) as described in other non-GAAP reconciliation tables above excluding non-GAAP adjustments to interest expense (income), net and depreciation and amortization (including amortization of cloud-based software implementation costs). See the (i) Reconciliations to Nearest U.S. GAAP Measures by Line Item, (ii) Underlying Depreciation and Amortization Reconciliation and (iii) Underlying Net Interest Income (Expense), net Reconciliation tables for further information on our non-GAAP adjustments. Expand
Business Wire
13 minutes ago
- Business Wire
Ferguson closes the fiscal year with nine acquisitions
NEWPORT NEWS, Va.--(BUSINESS WIRE)-- Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) announces the closing of four acquisitions during its fourth quarter: HPS Specialties, LLC, Ritchie Environmental Solutions, LLC, Manufactured Duct & Supply Company and Water Resources, Inc. The company closed on nine acquisitions last fiscal year, which ended July 31, 2025, with aggregate annualized revenues of approximately $300 million. HPS Specialties, LLC HPS Specialties is a manufacturer's representative of HVAC, plumbing and hydronic supplies serving commercial mechanical and industrial engineering professionals. The acquisition closed on June 16 and gives Ferguson entry into the mechanical room design and specification business in the Northeast and Mid-Atlantic. Ritchie Environmental Solutions, LLC Ritchie Environmental is a process equipment manufacturer's representative serving the water and wastewater treatment market in Virginia. The acquisition of Ritchie Environmental, which closed on June 24, is expected to strengthen Ferguson's expertise in water and wastewater system design and enhance its ability to collaborate on process equipment solutions. Manufactured Duct & Supply Company MDS is an HVAC supplies and parts distributor with duct board fabrication capabilities serving residential and light commercial contractors throughout metro Atlanta and the Southeast. The acquisition closed on July 21 and will strengthen Ferguson's HVAC footprint and customer relationships in the Atlanta market, further driving our ability to serve the dual-trade professional. Water Resources, Inc. Water Resources is the exclusive distributor of Neptune Technology Group products and water meters in the greater Chicago metro area. The acquisition, which closed on July 28, expands Ferguson's Neptune distribution rights and will enhance our ability to drive product specification in a key municipal market. 'We invest in acquisitions with talented associates, unique product offerings, and established customer and manufacturer relationships that strengthen our ability to serve the water and air specialized professional,' said Ferguson CEO Kevin Murphy. 'Our acquisitions this fiscal year spanned across six customer groups, strategically supporting our balanced business mix, and the pipeline remains healthy as we move into the next fiscal year.' Ferguson maintains a strong record of successful geographic and capability bolt-on acquisitions, completing approximately 50 in the last five years. The large, fragmented markets in which Ferguson operates comprise 10,000+ small to medium ($10-300 million revenue) independent companies across the company's $340B residential and non-residential North American construction market. About Ferguson Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) is the largest value-added distributor serving the specialized professional in our $340B residential and non-residential North American construction market. We help make our customers' complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more. Headquartered in Newport News, Va., Ferguson has sales of $29.6 billion (FY'24) and approximately 35,000 associates in nearly 1,800 locations. For more information, please visit Cautionary Note on Forward-Looking Statements Certain information in this announcement is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and speak only as of the date on which they are made. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believe,' 'expect' or other variations or comparable terminology and include, without limitation, statements regarding the anticipated benefits of the acquisitions. Forward-looking statements are subject to substantial risks and uncertainties, including, but not limited to, the following: risks related to the ability to realize the anticipated benefits of acquisitions, including the possibility that the anticipated benefits will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate and the macroeconomic impact of factors beyond our control (including, among others, inflation/deflation, recession, labor and wage pressures, trade restrictions such as tariffs, sanctions and retaliatory countermeasures, interest rates, and geopolitical conditions); failure to rapidly identify or effectively respond to direct and/or end customers' wants, expectations or trends, including costs and potential problems associated with new or upgraded information technology systems or our ability to timely deploy new omni-channel capabilities; decreased demand for our products as a result of operating in highly competitive industries and the impact of declines in the residential and non-residential markets and our ability to effectively manage inventory as a result; changes in competition, including as a result of market consolidation, new entrants, vertical integration or competitors responding more quickly to emerging technologies (such as generative artificial intelligence); unsuccessful execution of our operational strategies; fluctuations in product prices in product prices/costs (e.g., including as a result of the use of commodity-priced materials, inflation/deflation and/or trade restrictions) and foreign currency; and other risks and uncertainties set forth under the heading 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the Securities and Exchange Commission ('SEC') on September 25, 2024 and in other filings we make with the SEC in the future. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with our legal or regulatory obligations, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Investor Inquiries Brian Lantz Vice President, IR and Communications +1 224 285 2410 Pete Kennedy Director, Investor Relations +1 757 603 0111 Media Inquiries Christine Dwyer Senior Director, Communications and Public Relations +1 757 469 5813
