Molson Coors Beverage Company Reports 2025 Fourth Quarter and Full Year 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 fourth quarter and full year.

2025 FOURTH QUARTER FINANCIAL HIGHLIGHTS 1

2025 FULL YEAR FINANCIAL HIGHLIGHTS 1

See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.

CEO AND CFO PERSPECTIVES

Rahul Goyal, President and Chief Executive Officer Statement:

“Despite a number of macroeconomic issues impacting our industry and our category, we navigated a tough year to protect and deliver on our revised bottom-line expectations while narrowly missing our top-line guidance. We have a solid platform with our brands, infrastructure and people, and a strong balance sheet to weather this macro volatility. We made the necessary difficult decisions in our business to course correct and set ourselves up for the future. Our iconic brands resonate with consumers, and we are excited about our plans to unite people around our portfolio."

Tracey Joubert, Chief Financial Officer Statement:

“We are proud of our resilience and the financial discipline we delivered amidst a tough 2025 macro environment, with challenging industry dynamics and rising commodity input costs pressuring our bottom-line results. While we expect our top-line trends to improve in 2026, we expect commodity inflation in particular to be a meaningful headwind in 2026, which we do not believe is reflective of longer-term performance. Our balance sheet remains strong, with our net debt to underlying EBITDA ratio below our target of 2.5 times. Our solid cash generation has allowed us to return cash to shareholders via a growing dividend and share repurchase program, while investing in our brands and capabilities to position us well for future growth."

CONSOLIDATED PERFORMANCE - FOURTH QUARTER AND FULL YEAR 2025

For the three months ended

($ in millions, except per share data)

(Unaudited)

December 31, 2025

December 31, 2024

Reported Increase (Decrease)

Foreign Exchange Impact

Constant Currency Increase (Decrease) (1)

Net sales

2,662.4

2,735.6

(2.7

35.4

(4.0

U.S. GAAP income (loss) before income taxes

266.3

346.3

(23.1

2.4

(23.8

Underlying income (loss) before income taxes (1)

296.8

341.0

(13.0

2.8

(13.8

U.S. GAAP net income (loss) (2)

238.3

287.8

(17.2

Per diluted share

1.22

1.39

(12.2

Underlying net income (loss) (1)

237.2

268.6

(11.7

Per diluted share

1.21

1.30

(6.9

Financial volume (3)

17.146

18.585

(7.7

Brand volume (3)

18.028

18.870

(4.5

For the years ended

($ in millions, except per share data)

(Unaudited)

December 31, 2025

December 31, 2024

Reported Increase (Decrease)

Foreign Exchange Impact

Constant Currency Increase (Decrease) (1)

Net sales

11,140.8

11,627.0

(4.2

77.6

(4.8

U.S. GAAP income (loss) before income taxes

(2,518.0

)

1,503.0

N/M

(2.5

)

N/M

Underlying income (loss) before income taxes (1)

1,385.4

1,610.5

(14.0

11.4

(14.7

U.S. GAAP net income (loss) (2)

(2,139.6

)

1,122.4

N/M

Per diluted share

(10.75

)

5.35

N/M

Underlying net income (loss) (1)

1,082.0

1,250.0

(13.4

Per diluted share (4)

5.42

5.96

(9.1

Financial volume (3)

72.810

79.618

(8.6

Brand volume (3)

74.553

78.816

(5.4

N/M = Not meaningful

(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. Volume presented in millions of hectoliters.

(4)

Underlying net income (loss) attributable to MCBC per diluted share for the year ended December 31, 2025, was based on diluted shares of 199.8 million. The underlying diluted share count includes incremental dilutive shares, using the treasury stock method, which are added to average shares outstanding.

QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FOURTH QUARTER 2024 RESULTS)

Net Sales Drivers (unaudited)

Financial volume

(7.7

Price and sales mix

3.7

Currency

1.3

Total consolidated net sales

(2.7

Net sales decreased 2.7%, driven by lower financial volume, partially offset by favorable price and sales mix and favorable foreign currency impacts. Net sales decreased 4.0% in constant currency.

Financial volumes decreased 7.7%, due to lower shipments in both the Americas and EMEA&APAC segments. Brand volumes decreased 4.5%, including a 4.3% decrease in the Americas segment as well as a 5.0% decrease in the EMEA&APAC segment.

Price and sales mix favorably impacted net sales by 3.7%, primarily due to favorable sales mix and increased net pricing. Net sales per hectoliter increased 5.5% reported and 4.1% on a constant currency basis.

QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FOURTH QUARTER 2024 RESULTS)

Americas Segment Overview

The following table highlights the Americas segment results for the three months and year ended December 31, 2025 compared to December 31, 2024.

For the three months ended

($ in millions) (Unaudited)

December 31,

2025

December 31, 2024

Reported % Change

FX Impact

Constant Currency % Change (2)

Net sales (1)

2,066.2

2,173.9

(5.0

1.0

(5.0

Income (loss) before income taxes (1)

254.3

361.8

(29.7

0.2

(29.8

Underlying income (loss) before income taxes (1)(2)

293.2

362.0

(19.0

0.4

(19.1

For the years ended

($ in millions) (Unaudited)

December 31,

2025

December 31, 2024

Reported % Change

FX Impact

Constant Currency % Change (2)

Net sales (1)

8,712.8

9,240.2

(5.7

(21.4

)

(5.5

Income (loss) before income taxes (1)

(2,343.6

)

1,523.3

N/M

—

N/M

Underlying income (loss) before income taxes (1)(2)

1,398.0

1,590.3

(12.1

(1.6

)

(12.0

N/M = Not meaningful

The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable.

(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.

Americas Segment Highlights (Versus Fourth Quarter 2024 Results)

Net Sales Drivers (unaudited)

Financial volume

(8.5

Price and sales mix

3.5

Currency

—

Total Americas net sales

(5.0

Net sales decreased 5.0%, driven by lower financial volume, partially offset by favorable price and sales mix.

Financial volumes decreased 8.5%, primarily due to lower brand volume, an approximate 2% impact from lower contract brewing volume resulting from the exit of contract brewing arrangements in the U.S. and Canada as well as an approximate 2% impact in lower shipments resulting in lower U.S. distributor inventories. Americas brand volumes decreased 4.3%, including a 5.1% decrease in U.S. brand volumes driven by the macroeconomic environment resulting in industry softness as well as lower share performance, mainly in the above premium and premium segments.

Price and sales mix favorably impacted net sales by 3.5%, primarily due to increased net pricing, sales mix as a result of lower contract brewing volume and positive brand mix.

EMEA&APAC Segment Overview

The following table highlights the EMEA&APAC segment results for the three months and year ended December 31, 2025 compared to December 31, 2024.

For the three months ended

($ in millions) (Unaudited)

December 31, 2025

December 31, 2024

Reported % Change

FX Impact

Constant Currency % Change (2)

Net sales (1)

603.5

568.7

6.1

34.4

0.1

Income (loss) before income taxes (1)

51.7

23.5

120.0

2.6

108.9

Underlying income (loss) before income taxes (1)(2)

54.8

24.2

126.4

2.9

114.5

For the years ended

($ in millions) (Unaudited)

December 31, 2025

December 31, 2024

Reported % Change

FX Impact

Constant Currency % Change (2)

Net sales (1)

2,455.7

2,411.1

1.8

99.0

(2.3

Income (loss) before income taxes (1)

(13.1

)

145.3

N/M

1.3

N/M

Underlying income (loss) before income taxes (1)(2)

197.2

185.9

6.1

16.8

(3.0

N/M = Not meaningful

The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable.

(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.

EMEA&APAC Segment Highlights (Versus Fourth Quarter 2024 Results)

Net Sales Drivers (unaudited)

Financial volume

(5.4

Price and sales mix

5.5

Currency

6.0

Total EMEA&APAC net sales

6.1

Net sales increased 6.1% driven by favorable foreign currency impacts as well as favorable price and sales mix, partially offset by lower financial volume. Net sales increased 0.1% in constant currency.

Financial and brand volume decreased 5.4% and 5.0%, respectively, primarily due to lower volume 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 higher factored brand volume, premiumization and increased net pricing. Net sales per hectoliter increased 12.2% reported and 5.8% on a constant currency basis.

Foreign currency favorably impacted net sales by 6.0%, primarily due to weakening of the USD compared to the Great British Pound ("GBP"), Euro ("EUR") and Czech Koruna ("CZK").

FULL YEAR CONSOLIDATED HIGHLIGHTS (VERSUS 2024 RESULTS)

Net Sales Drivers (unaudited)

Financial volume

(8.6

Price and sales mix

3.8

Currency

0.6

Total net sales

(4.2

Net sales decreased 4.2% driven by lower financial volume, partially offset by favorable price and sales mix and favorable foreign currency impacts. Net sales decreased 4.8% in constant currency.

Financial volume decreased 8.6%, primarily due to lower shipments in the Americas segment attributable to the macroeconomic environment resulting in industry softness and lower U.S. share performance as well as lower shipments in the EMEA&APAC segment. Brand volume decreased 5.4%, including a 4.9% decrease in the Americas segment as well as a 6.7% decrease in the EMEA&APAC segment.

Price and sales mix favorably impacted net sales by 3.8%, 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 and positive brand mix.

(Unaudited)

For the years ended

December 31, 2025

December 31, 2024

U.S. GAAP Effective Tax Rate

13.4

23.0

Underlying (Non-GAAP) Effective Tax Rate (1)

22.5

(1)

See Appendix for definitions and reconciliations of non-GAAP financial measures.

Our U.S. GAAP effective tax rate decreased for the year ended December 31, 2025, compared to the prior year, primarily due to the impact of the $3,645.7 million partial goodwill impairment, a portion of which was not deductible for tax purposes. The decrease was also driven by the cycling of a $45.8 million increase in the mandatorily redeemable NCI liability of CBPL to its final redemption value, which was recorded to interest expense in the third quarter of 2024 and was nondeductible for tax purposes. These decreases were offset in part by the cycling of a $77.9 million nontaxable gain recognized upon the consolidation of ZOA in the fourth quarter of 2024.

CASH FLOW AND LIQUIDITY HIGHLIGHTS

2026 OUTLOOK

We expect to achieve the following targets for full year 2026 despite the inherent uncertainties that exist with inflationary commodity cost pressures and a softer beer industry.

SUBSEQUENT EVENTS

On February 18, 2026, our Company's Board of Directors declared a quarterly dividend of $0.48 per share, to be paid on March 20, 2026, to shareholders of Class A and Class B common stock of record on March 6, 2026. Shareholders of exchangeable shares will receive the CAD equivalent of dividends earned on Class A and Class B common stock.

On February 18, 2026, our Company announced a three-year cost savings program targeting up to $450 million with savings beginning in 2026. The cost savings program, inclusive of the Americas Restructuring Plan announced in the fourth quarter of 2025, is intended to mitigate inflation impacts and enable continued investment at levels necessary to fuel our business. The savings will be driven by many areas of the business and will impact both the Americas and EMEA&APAC segments.

NOTES

Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all comparative results are for the Company’s fourth quarter or full year ended December 31, 2025, compared to the fourth quarter or full year ended December 31, 2024. Some numbers may not sum due to rounding.

2025 FOURTH QUARTER MATERIALS

The earnings presentation for Molson Coors Beverage Company's 2025 fourth quarter and full year results will be accessible via our website, ir.molsoncoors.com. 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 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 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 molsoncoors.com.

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," "intends," "goals," "plans," "believes," "confidence," "views," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies" 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 "2026 Outlook," with respect to, among others, expectations and impacts of macroeconomic forces, beverage industry trends, cost inflation and tariffs, consumer preferences and limited consumer disposable income, overall volume and market share trends, our competitive position, execution of our strategic priorities, anticipated results, pricing trends, cost reduction strategies, including the Americas Restructuring Plan announced in October of 2025 and the expected charges and benefits of the restructuring, shipment levels and profitability, the sufficiency of capital resources, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, Preserving the Planet and related environmental initiatives, effective tax rate, 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

STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In millions, except per share data) (Unaudited)

For the three months ended

For the years ended

December 31, 2025

December 31,

2024

December 31,

2025

December 31,

2024

Sales

3,125.8

3,243.6

13,040.3

13,734.3

Excise taxes

(463.4

)

(508.0

)

(1,899.5

)

(2,107.3

)

Net sales

2,662.4

2,735.6

11,140.8

11,627.0

Cost of goods sold

(1,694.1

)

(1,698.1

)

(6,866.2

)

(7,093.6

)

Gross profit

968.3

1,037.5

4,274.6

4,533.4

Marketing, general and administrative expenses

(610.9

)

(649.7

)

(2,643.9

)

(2,717.5

)

Goodwill impairment

—

(3,645.7

)

—

Other operating income (expense), net

(35.0

)

(6.0

)

(335.3

)

(65.4

)

Equity income (loss)

1.9

6.3

13.4

2.7

Operating income (loss)

324.3

388.1

(2,336.9

)

1,753.2

Interest income (expense), net

(56.2

)

(54.6

)

(227.3

)

(247.3

)

Other pension and postretirement benefit (cost), net

3.6

6.9

14.4

(5.0

)

Other non-operating income (expense), net

(5.4

)

5.9

31.8

2.1

Income (loss) before income taxes

266.3

346.3

(2,518.0

)

1,503.0

Income tax benefit (expense)

(57.0

)

(52.6

)

337.8

(345.3

)

Net income (loss)

209.3

293.7

(2,180.2

)

1,157.7

Net (income) loss attributable to noncontrolling interests

29.0

(5.9

)

40.6

(35.3

)

Net income (loss) attributable to MCBC

238.3

287.8

(2,139.6

)

1,122.4

Basic net income (loss) attributable to MCBC per share

1.22

1.40

(10.75

)

5.38

Diluted net income (loss) attributable to MCBC per share

1.22

1.39

(10.75

)

5.35

Weighted-average shares - basic

195.1

205.3

199.1

208.8

Weighted-average shares - diluted

195.7

206.5

199.1

209.9

Dividends per share

0.47

0.44

1.88

1.76

BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions, except par value) (Unaudited)

As of

December 31, 2025

December 31, 2024

Assets

Current assets

Cash and cash equivalents

896.5

969.3

Trade receivables, net

703.0

693.1

Other receivables, net

187.3

149.8

Inventories, net

715.9

727.8

Other current assets, net

432.8

308.4

Total current assets

2,935.5

2,848.4

Property, plant and equipment, net

4,768.7

4,460.4

Goodwill

1,944.7

5,582.3

Other intangibles, net

11,991.1

12,195.2

Other assets

1,098.4

978.0

Total assets

22,738.4

26,064.3

Liabilities and equity

Current liabilities

Accounts payable and other current liabilities

2,876.7

3,013.0

Current portion of long-term debt and short-term borrowings

2,434.1

32.2

Total current liabilities

5,310.8

3,045.2

Long-term debt

3,865.4

6,113.9

Pension and postretirement benefits

427.1

416.7

Deferred tax liabilities

2,284.7

2,733.4

Other liabilities

307.7

302.4

Total liabilities

12,195.7

12,611.6

Redeemable noncontrolling interest

115.6

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: 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: 2.7 shares and 2.7 shares, respectively)

100.8

Class B exchangeable shares, no par value (issued: 7.1 shares and 7.2 shares, respectively)

266.9

271.1

Paid-in capital

7,247.2

7,223.6

Retained earnings

5,723.7

8,238.0

Accumulated other comprehensive income (loss)

(1,071.6

)

(1,362.4

)

Class B common stock held in treasury at cost (37.7 shares and 24.8 shares, respectively)

(2,038.9

)

(1,380.8

)

Total Molson Coors Beverage Company stockholders' equity

10,230.3

13,092.4

Noncontrolling interests

196.8

191.8

Total equity

10,427.1

13,284.2

Total liabilities and equity

22,738.4

26,064.3

CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions) (Unaudited)

For the years ended

December 31, 2025

December 31, 2024

Cash flows from operating activities

Net income (loss) including noncontrolling interests

(2,180.2

)

1,157.7

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities

Depreciation and amortization

711.3

759.4

Amortization of cloud computing arrangements

14.4

11.3

Amortization of debt issuance costs and discounts

5.1

5.3

Interest expense related to mandatorily redeemable noncontrolling interest

—

46.5

Share-based compensation

35.0

43.1

Goodwill impairment

3,645.7

—

(Gain) loss on sale or impairment of property, plant, equipment and other assets, net

262.6

51.8

Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net

(81.7

)

(28.7

)

Equity (income) loss

(13.4

)

(2.7

)

Income tax (benefit) expense

(337.8

)

345.3

Income tax (paid) received

(131.4

)

(227.1

)

Interest expense, excluding amortization of debt issuance costs and discounts and mandatorily redeemable noncontrolling interest

242.8

230.9

Interest paid

(240.7

)

(216.0

)

Other non-cash items, net

(0.6

)

(77.1

)

Change in current assets and liabilities (net of impact of business combinations) and other

(146.7

)

(189.4

)

Net cash provided by (used in) operating activities

1,784.4

1,910.3

Cash flows from investing activities

Additions to property, plant and equipment

(716.6

)

(674.1

)

Proceeds from sales of property, plant, equipment and other assets

15.8

24.5

Acquisition of business, net of cash acquired

(22.3

)

(8.6

)

Other, net

(99.0

)

10.2

Net cash provided by (used in) investing activities

(822.1

)

(648.0

)

Cash flows from financing activities

Dividends paid

(376.3

)

(369.2

)

Payments for purchases of treasury stock

(647.9

)

(643.4

)

Payments on debt and borrowings

(12.8

)

(883.8

)

Proceeds on debt and borrowings

—

863.7

Other, net

(19.8

)

(105.7

)

Net cash provided by (used in) financing activities

(1,056.8

)

(1,138.4

)

Effect of foreign exchange rate changes on cash and cash equivalents

21.7

(23.5

)

Net increase (decrease) in cash and cash equivalents

(72.8

)

100.4

Balance at beginning of year

969.3

868.9

Balance at end of year

896.5

969.3

SUMMARIZED SEGMENT RESULTS ($ in millions and volume in millions of hectoliters) (Unaudited)

Americas

Q4 2025

Q4 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Full year 2025

Full year 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Net sales (1)

2,066.2

2,173.9

(5.0

)

1.0

(5.0

)

8,712.8

9,240.2

(5.7

)

(21.4

)

(5.5

)

COGS (1)(2)

(1,296.9

)

(1,317.5

)

1.6

(0.7

)

1.6

(5,285.8

)

(5,561.8

)

5.0

13.5

4.7

MG&A

(478.7

)

(500.5

)

4.4

(0.9

)

4.5

(2,041.7

)

(2,089.6

)

2.3

7.2

1.9

Income (loss) before income taxes

254.3

361.8

(29.7

)

0.2

(29.8

)

(2,343.6

)

1,523.3

N/M

—

N/M

Underlying income (loss) before income taxes (3)

293.2

362.0

(19.0

)

0.4

(19.1

)

1,398.0

1,590.3

(12.1

)

(1.6

)

(12.0

)

Financial volume (1)(4)

12.720

13.904

(8.5

)

53.507

58.905

(9.2

)

Brand volume

13.606

14.215

(4.3

)

55.273

58.143

(4.9

)

EMEA&APAC

Q4 2025

Q4 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Full year 2025

Full year 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Net sales (1)

603.5

568.7

6.1

34.4

0.1

2,455.7

2,411.1

1.8

99.0

(2.3

)

COGS (1)(2)

(415.9

)

(393.5

)

(5.7

)

(22.9

)

0.1

(1,656.5

)

(1,588.9

)

(4.3

)

(63.6

)

(0.3

)

MG&A

(132.2

)

(149.2

)

11.4

(9.1

)

17.5

(602.2

)

(627.9

)

4.1

(22.5

)

7.7

Income (loss) before income taxes

51.7

23.5

120.0

2.6

108.9

(13.1

)

145.3

N/M

1.3

N/M

Underlying income (loss) before income taxes (3)

54.8

24.2

126.4

2.9

114.5

197.2

185.9

6.1

16.8

(3.0

)

Financial volume (1)(4)

4.428

4.683

(5.4

)

19.310

20.722

(6.8

)

Brand volume

4.422

4.655

(5.0

)

19.280

20.673

(6.7

)

Unallocated & Eliminations

Q4 2025

Q4 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Full year 2025

Full year 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Net sales

(7.3

)

(7.0

)

(4.3

)

—

(4.3

)

(27.7

)

(24.3

)

(14.0

)

—

(14.0

)

COGS (2)

18.7

12.9

45.0

0.1

44.2

76.1

57.1

33.3

—

33.3

Income (loss) before income taxes

(39.7

)

(39.0

)

(1.8

)

(0.4

)

(0.8

)

(161.3

)

(165.6

)

2.6

(3.8

)

4.9

Underlying income (loss) before income taxes (3)

(51.2

)

(45.2

)

(13.3

)

(0.5

)

(12.2

)

(209.8

)

(165.7

)

(26.6

)

(3.8

)

(24.3

)

Financial volume

(0.002

)

(0.002

)

—

(0.007

)

(0.009

)

22.2

Consolidated

Q4 2025

Q4 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Full year 2025

Full year 2024

Reported % Change

FX Impact

Constant Currency % Change (3)

Net sales

2,662.4

2,735.6

(2.7

)

35.4

(4.0

)

11,140.8

11,627.0

(4.2

)

77.6

(4.8

)

COGS

(1,694.1

)

(1,698.1

)

0.2

(23.5

)

1.6

(6,866.2

)

(7,093.6

)

3.2

(50.1

)

3.9

MG&A

(610.9

)

(649.7

)

6.0

(10.0

)

7.5

(2,643.9

)

(2,717.5

)

2.7

(15.3

)

3.3

Income (loss) before income taxes

266.3

346.3

(23.1

)

2.4

(23.8

)

(2,518.0

)

1,503.0

N/M

(2.5

)

N/M

Underlying income (loss) before income taxes (3)

296.8

341.0

(13.0

)

2.8

(13.8

)

1,385.4

1,610.5

(14.0

)

11.4

(14.7

)

Financial volume (4)

17.146

18.585

(7.7

)

72.810

79.618

(8.6

)

Brand volume

18.028

18.870

(4.5

)

74.553

78.816

(5.4

)

N/M = Not meaningful

The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable.

(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 income 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 0.785 million hectoliters and 0.321 million hectoliters for the three months ended December 31, 2025, respectively, and excludes royalty volume of 0.755 million hectoliters and 0.286 million hectoliters for three months ended December 31, 2024, respectively. Financial volume in hectoliters for the Americas and EMEA&APAC excludes royalty volume of 2.852 million hectoliters and 1.224 million hectoliters for the year ended December 31, 2025, respectively, and excludes royalty volume of 2.550 million hectoliters and 1.185 million hectoliters for the year ended December 31, 2024, respectively.

WORLDWIDE AND SEGMENT BRAND AND FINANCIAL VOLUME

(In millions of hectoliters) (Unaudited)

For the three months ended

Americas

December 31, 2025

December 31, 2024

Change

Financial Volume

12.720

13.904

(8.5

Contract brewing and wholesale/factored volume

(0.350

)

(0.589

)

40.6

Royalty volume

0.785

0.755

4.0

Sales-To-Wholesaler to Sales-To-Retail adjustment and other (1)

0.451

0.145

211.0

Total Americas Brand Volume

13.606

14.215

(4.3

EMEA&APAC

December 31, 2025

December 31, 2024

Change

Financial Volume

4.428

4.683

(5.4

Contract brewing and wholesale/factored volume

(0.327

)

(0.314

)

(4.1

Royalty volume

0.321

0.286

12.2

Total EMEA&APAC Brand Volume

4.422

4.655

(5.0

Consolidated

December 31, 2025

December 31, 2024

Change

Financial Volume

17.146

18.585

(7.7

Contract brewing and wholesale/factored volume

(0.677

)

(0.903

)

25.0

Royalty volume

1.106

1.041

6.2

Sales-To-Wholesaler to Sales-To-Retail adjustment and other

0.453

0.147

208.2

Total Worldwide Brand Volume

18.028

18.870

(4.5

(In millions of hectoliters) (Unaudited)

For the years ended

Americas

December 31, 2025

December 31, 2024

Change

Financial Volume

53.507

58.905

(9.2

Contract brewing and wholesale/factored volume

(1.551

)

(3.193

)

51.4

Royalty volume

2.852

2.550

11.8

Sales-To-Wholesaler to Sales-To-Retail adjustment and other (1)

0.465

(0.119

)

N/M

Total Americas Brand Volume

55.273

58.143

(4.9

EMEA&APAC

December 31, 2025

December 31, 2024

Change

Financial Volume

19.310

20.722

(6.8

Contract brewing and wholesale/factored volume

(1.254

)

(1.234

)

(1.6

Royalty volume

1.224

1.185

3.3

Total EMEA&APAC Brand Volume

19.280

20.673

(6.7

Consolidated

December 31, 2025

December 31, 2024

Change

Financial Volume

72.810

79.618

(8.6

Contract brewing and wholesale/factored volume

(2.805

)

(4.427

)

36.6

Royalty volume

4.076

3.735

9.1

Sales-To-Wholesaler to Sales-To-Retail adjustment

0.472

(0.110

)

N/M

Total Worldwide Brand Volume

74.553

78.816

(5.4

N/M = Not meaningful

(1)

Includes gross inter-segment volumes which are eliminated in the consolidated totals.

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 geographic 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 this metric, as a key metric for analyzing our results. These metrics are calculated as net sales and COGS per our 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 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 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.

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.

RECONCILIATION TO NEAREST U.S. GAAP MEASURES

Reconciliation by Line Item

(In millions, except per share data) (Unaudited)

For the three months ended December 31, 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

Reported (U.S. GAAP)

(1,694.1

)

(610.9

)

266.3

238.3

1.22

Non-GAAP adjustments (pre-tax)

Restructuring (1)

—

35.0

34.9

0.18

Unrealized mark-to-market (gains) losses

(11.4

)

—

(11.4

)

(11.4

)

(0.06

)

Other items (2)

—

0.3

6.9

6.0

0.03

Tax effect of non-GAAP adjustments and other discrete tax items

—

(7.8

)

(0.04

)

Redeemable noncontrolling interest adjustments (3)

—

(22.8

)

(0.12

)

Underlying (Non-GAAP)

(1,705.5

)

(610.6

)

296.8

237.2

1.21

(1)

On October 20, 2025, we announced an Americas Restructuring Plan designed to create a leaner, more agile Americas segment while advancing our ability to reinvest in the business and position our Company for future growth. The plan resulted in charges of $28.7 million, primarily related to severance payments and post-employment benefits, recorded to other operating income (expense), net in our consolidated statements of operations during the year ended December 31, 2025. The remaining charges, predominantly employee-related charges for the Americas Restructuring Plan are expected to be recorded during the year ended December 31, 2026 and total restructuring charges are expected to be at the low end of the previously communicated range of $35 million to $50 million at approximately $35 million.

(2)

During the first quarter of 2025, we made an investment in Fevertree Drinks plc and hold a minority interest. During the three months ended December 31, 2025, we recorded an unrealized loss of $7.6 million resulting from the change in the fair value of the investment.

(3)

During the fourth quarter of 2025, we recorded $22.8 million of loss attributable to NCI related to the changes in redemption value of certain of our redeemable NCI.

(In millions, except per share data) (Unaudited)

For the three months ended December 31, 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)

(1,698.1

)

(649.7

)

346.3

287.8

1.39

Non-GAAP adjustments (pre-tax)

Restructuring (1)

—

83.8

0.41

(Gains) and losses on disposals

—

0.1

—

Unrealized mark-to-market (gains) losses

(6.2

)

—

(6.2

)

(6.2

)

(0.03

)

Other items (2)

(6.3

)

0.5

(83.0

)

(83.0

)

(0.40

)

Tax effect of non-GAAP adjustments and other discrete tax items

—

(13.9

)

(0.07

)

Underlying (Non-GAAP)

(1,710.6

)

(649.2

)

341.0

268.6

1.30

(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 $83.7 million for the three months ended December 31, 2024.

(2)

During the three months ended December 31, 2024, we further increased our investment in ZOA resulting in consolidation and recognized a gain of $77.9 million in other operating (expense), net, within the Americas segment representing the difference between the fair value and the carrying value of our previously held equity interest on the acquisition date.

(In millions, except per share data) (Unaudited)

For the year ended December 31, 2025

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 (5)

Reported (U.S. GAAP)

(6,866.2

)

(2,643.9

)

(2,518.0

)

(2,139.6

)

(10.75

)

Non-GAAP adjustments (pre-tax)

Goodwill impairment (1)

—

3,645.7

3,568.2

17.86

Intangible and tangible asset impairments, excluding goodwill (2)

—

273.9

255.0

1.28

Restructuring (3)

—

64.3

64.2

0.32

(Gains) and losses on disposals

—

0.6

—

Unrealized mark-to-market (gains) losses

(48.4

)

—

(48.4

)

(48.4

)

(0.24

)

Other items (4)

—

0.1

(32.7

)

(33.6

)

(0.17

)

Tax effect of non-GAAP adjustments and other discrete tax items

—

(645.1

)

(3.23

)

Redeemable noncontrolling interest adjustments (6)

—

60.7

0.30

Underlying (Non-GAAP)

(6,914.6

)

(2,643.8

)

1,385.4

1,082.0

5.42

(1)

During the third quarter of 2025, we identified a triggering event that indicated it was more likely than not that the carrying value of the Americas reporting unit exceeded its fair value. As a result, we recorded a partial goodwill impairment loss of $3,645.7 million, of which $77.5 million was attributable to NCI.

(2)

During the third quarter 2025, we identified a triggering event for the Blue Run Spirits asset group in the Americas segment and the Staropramen family of brands in the EMEA&APAC segment. As a result, we recorded intangible impairment losses totaling $273.9 million, of which $18.9 million was attributable to a NCI.

(3)

On October 20, 2025, we announced an Americas Restructuring Plan designed to create a leaner, more agile Americas segment while advancing our ability to reinvest in the business and position our Company for future growth. The plan resulted in charges of $28.7 million, primarily related to severance payments and post-employment benefits, recorded to other operating income (expense), net in our consolidated statements of operations during the year ended December 31, 2025. The remaining charges, predominantly employee-related charges, for the Americas Restructuring Plan are expected to be recorded during the year ended December 31, 2026 and total restructuring charges are expected to be at the low end of the previously communicated range of $35 million to $50 million at approximately $35 million.

During the third quarter of 2024, we made the decision to wind down or sell certain of our U.S. craft businesses and related facilities and recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation. As a result, during the first quarter of 2025, we incurred incremental accelerated depreciation in excess of normal depreciation of $17.9 million.

(4)

During the first quarter of 2025, we made an investment in Fevertree Drinks plc and hold a minority interest. During the year ended December 31, 2025, we recorded an unrealized gain of $31.7 million resulting from the change in the fair value of the investment.

(5)

Due to the reported net loss attributable to MCBC, the reported diluted per shares calculated for the year ended December 31, 2025, used a share count of 199.1 million shares. Due to underlying net income attributable to MCBC, the adjustments to arrive at underlying per diluted share as well as underlying income per diluted share for the year ended December 31, 2025, used a share count of 199.8 million shares. Due to the differing share counts used to calculate the earnings per share impact, the earnings per share totals in the tables are not expected to sum.

(6)

During the year ended 2025, we recorded $60.7 million of income attributable to NCI related to the changes in redemption value of certain of our redeemable NCI.

(In millions, except per share data) (Unaudited)

For the year ended December 31, 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)

(7,093.6

)

(2,717.5

)

1,503.0

1,122.4

5.35

Non-GAAP adjustments (pre-tax)

Restructuring (1)

—

106.8

0.51

(Gains) and losses on disposals (2)

—

36.5

0.17

Unrealized mark-to-market (gains) losses

(34.1

)

—

(34.1

)

(34.1

)

(0.16

)

Other items (3)

(6.3

)

2.2

(1.7

)

(1.7

)

(0.01

)

Tax effect of non-GAAP adjustments and other discrete tax items

—

(16.4

)

(0.08

)

Adjustment for redeemable noncontrolling interest recorded to the redemption value (4)

—

36.6

0.17

Underlying (Non-GAAP)

(7,134.0

)

(2,715.3

)

1,610.5

1,250.1

5.96

(1)

During the third quarter of 2024, we made the decision to wind down or sell certain of our 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 $93.6 million for the year ended December 31, 2024.

(2)

We recognized a loss of $41.2 million on the disposal of certain U.S. craft businesses for the year ended December 31, 2024.

(3)

During the fourth quarter of 2024, we further increased our investment in ZOA, resulting in consolidation and recognized a gain of $77.9 million in other operating (expense), net within the Americas segment representing the difference between the fair value and the carrying value of our previously held equity interest on the acquisition date.

During the third quarter of 2024, we recorded a non-cash pension settlement loss of $34.0 million within other pension and postretirement benefits (costs), net in Unallocated as a result of annuity purchases for two of our Canadian pension plans.

During the third quarter of 2024, we increased our mandatorily redeemable NCI liability to the final redemption value related to the buyout of the remaining ownership interest in CBPL. As a result, we recorded an increase in interest expense in interest expense within our EMEA&APAC segment of $45.8 million.

(4)

We recorded a $36.6 million adjustment to net (income) loss attributable to NCI related to the change in redemption value of CBPL.

Reconciliation to Underlying (Non-GAAP) Income (Loss) Before Income Taxes by Segment

(In millions) (Unaudited)

For the three months ended December 31, 2025

Americas

EMEA&APAC

Unallocated

Consolidated

U.S. GAAP Income (loss) before income taxes

254.3

51.7

(39.7

)

266.3

Cost of goods sold (1)

—

(11.4

)

(11.4

)

Marketing, general & administrative

0.3

—

0.3

Other non-GAAP adjustment items (2)

38.6

3.1

(0.1

)

41.6

Total non-GAAP adjustment items

38.9

3.1

(11.5

)

30.5

Underlying (Non-GAAP) income (loss) before income taxes

293.2

54.8

(51.2

)

296.8

(In millions) (Unaudited)

For the three months ended December 31, 2024

Americas

EMEA&APAC

Unallocated

Consolidated

U.S. GAAP Income (loss) before income taxes

361.8

23.5

(39.0

)

346.3

Cost of goods sold (1)

(6.3

)

—

(6.2

)

(12.5

)

Marketing, general & administrative

0.5

—

0.5

Other non-GAAP adjustment items (2)

6.0

0.7

—

6.7

Total non-GAAP adjustment items

0.2

0.7

(6.2

)

(5.3

)

Underlying (Non-GAAP) income (loss) before income taxes

362.0

24.2

(45.2

)

341.0

(In millions) (Unaudited)

For the year ended December 31, 2025

Americas

EMEA&APAC

Unallocated

Consolidated

U.S. GAAP Income (loss) before income taxes

(2,343.6

)

(13.1

)

(161.3

)

(2,518.0

)

Cost of goods sold (1)

—

(48.4

)

(48.4

)

Marketing, general & administrative

0.1

—

0.1

Goodwill impairment

3,645.7

—

3,645.7

Other non-GAAP adjustment items (2)

95.8

210.3

(0.1

)

306.0

Total non-GAAP adjustment items

3,741.6

210.3

(48.5

)

3,903.4

Underlying (Non-GAAP) income (loss) before income taxes

1,398.0

197.2

(209.8

)

1,385.4

(In millions) (Unaudited)

For the year ended December 31, 2024

Americas

EMEA&APAC

Unallocated

Consolidated

U.S. GAAP Income (loss) before income taxes

1,523.3

145.3

(165.6

)

1,503.0

Cost of goods sold (1)

(6.3

)

—

(34.1

)

(40.4

)

Marketing, general & administrative

2.2

—

2.2

Other non-GAAP adjustment items (2)

71.1

40.6

34.0

145.7

Total non-GAAP adjustment items

67.0

40.6

(0.1

)

107.5

Underlying (Non-GAAP) income (loss) before income taxes

1,590.3

185.9

(165.7

)

1,610.5

(1)

Primarily 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.

Underlying (Non-GAAP) Depreciation and Amortization Reconciliation

(In millions) (Unaudited)

For the three months ended

For the years ended

December 31, 2025

December 31, 2024

December 31,

2025

December 31,

2024

U.S. GAAP depreciation and amortization

(181.1

)

(247.3

)

(711.3

)

(759.4

)

Accelerated depreciation (1)

5.2

83.7

23.1

93.6

Underlying (Non-GAAP) depreciation and amortization

(175.9

)

(163.6

)

(688.2

)

(665.8

)

(1)

Primarily a result of a third quarter of 2024 decision to wind down or sell certain of our U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded accelerated depreciation in excess of normal depreciation of $17.9 million for the year ended December 31, 2025, and $83.7 million and $93.6 million for the three months and year ended December 31, 2024, respectively.

Underlying (Non-GAAP) Net Interest Income (Expense) Reconciliation

(In millions) (Unaudited)

For the three months ended

For the years ended

December 31, 2025

December 31, 2024

December 31,

2025

December 31,

2024

U.S. GAAP Interest income (expense), net

(56.2

)

(54.6

)

(227.3

)

(247.3

)

Adjustment to the redemption value of mandatorily redeemable noncontrolling interest (1)

—

0.7

—

46.5

Underlying (Non-GAAP) net interest income (expense)

(56.2

)

(53.9

)

(227.3

)

(200.8

)

(1)

During the three months and year ended December 31, 2024, we recorded an increase in interest expense driven by an adjustment to increase our mandatorily redeemable NCI liability related to CBPL to its final redemption value.

Underlying (Non-GAAP) Effective Tax Rate Reconciliation

(Unaudited)

For the years ended

December 31, 2025

December 31, 2024

U.S. GAAP Effective Tax Rate

13.4

23.0

Tax effect of non-GAAP adjustments and other discrete tax items (1)

9.1

(0.5

Underlying (Non-GAAP) Effective Tax Rate

22.5

(1)

The change in tax effect of non-GAAP adjustment items for the year ended December 31, 2025 included the impact of the $3,645.7 million partial goodwill impairment which a portion of the goodwill was not deductible for tax purposes. Adjustments related to the tax effect of non-GAAP adjustments for the year ended December 31, 2024 included a non-deductible $45.8 million adjustment recorded to interest expense to increase the mandatorily redeemable NCI liability related to CBPL to the final redemption value in the third quarter of 2024 as well as a valuation allowance on deferred tax assets recorded in the third quarter of 2024 from the decision to sell certain of our U.S. craft businesses. The tax effect of these adjustments was partially offset by the non-taxable gain of $77.9 million recognized in the fourth quarter of 2024 upon the consolidation of ZOA.

Underlying (Non-GAAP) Free Cash Flow

(In millions) (Unaudited)

For the years ended

December 31,

2025

December 31,

2024

U.S. GAAP Net Cash Provided by (Used In) Operating Activities

1,784.4

1,910.3

Additions to property, plant and equipment, net (1)

(716.6

)

(674.1

)

Cash impact of non-GAAP adjustment items (2)

73.6

4.4

Underlying (Non-GAAP) Free Cash Flow

1,141.4

1,240.6

(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 in the first quarter of 2025. Additionally, this includes costs paid for restructuring activities for the years ended December 31, 2025 and December 31, 2024.

Net Debt (Non-GAAP) and Net Debt (Non-GAAP) to Underlying (Non-GAAP) EBITDA Ratio

(In millions except net debt (Non-GAAP) to underlying (Non-GAAP) EBITDA ratio) (Unaudited)

As of

December 31, 2025

December 31, 2024

U.S. GAAP Current portion of long-term debt and short-term borrowings

2,434.1

32.2

Add: Long-term debt

3,865.4

6,113.9

Less: Cash and cash equivalents

896.5

969.3

Net debt (Non-GAAP)

5,403.0

5,176.8

Q4 Underlying EBITDA

532.7

558.5

Q3 Underlying EBITDA

665.4

692.3

Q2 Underlying EBITDA

763.9

750.1

Q1 Underlying EBITDA

353.3

476.2

Underlying (Non-GAAP) EBITDA (1)

2,315.3

2,477.1

Net debt (Non-GAAP) to underlying (Non-GAAP) EBITDA ratio

2.33

2.09

Represents underlying EBITDA on a trailing twelve month basis.

Underlying (Non-GAAP) EBITDA Reconciliation

($ in millions) (Unaudited)

For the three months ended

December 31, 2025

December 31, 2024

U.S. GAAP Net income (loss)

209.3

293.7

Interest expense (income), net

56.2

54.6

Income tax expense (benefit)

57.0

52.6

Depreciation and amortization

181.1

247.3

Amortization of cloud computing arrangements

3.8

—

Non-GAAP adjustments to arrive at underlying (non-GAAP) EBITDA (1)

25.3

(89.7

)

Underlying (Non-GAAP) EBITDA

532.7

558.5

(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. 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) Reconciliation tables for further information on our non-GAAP adjustments.