Midwest Premium Pricing Headwind
Midwest Premium pricing had an approximate $40 million unfavorable impact on cost of goods sold in Q2, and the company anticipates a $130 million impact for full-year 2026.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Molson Coors Beverage Company's Q2 FY2026 results were defined by a sharp profit decline as elevated aluminum costs and lower volumes hit the bottom line. A $40 million unfavorable impact from Midwest Premium pricing and a 5.4% drop in financial volume pressured margins, particularly in the Americas where core and value brands lost momentum. The company completed its $275 million acquisition of Atomic Brands (Monaco Cocktails) to bolster its RTD portfolio. While net pricing and premiumization provided a partial offset, the gross margin contracted dramatically, highlighting the ongoing tension between cost inflation and competitive dynamics.
Revenue
$3.6B
-3.63% YoY
EPS (Diluted)
$1.23
-42.25% YoY
Gross Margin
29.5%
-4.8 pts YoY
Operating Income
$331.9M
-43.13% YoY
Source: SEC XBRL
Molson Coors Beverage (TAP) reported Q2 FY2026 revenue of $3.6B, down 3.6% year over year. Operating margin was 9.2%, down 6.4 points from 15.6% a year earlier. TAP's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.58 | 1.52 | Beat +3.7% |
| Mar 2026 | 0.62 | 0.37 | Beat +67.2% |
| Dec 2025 | 1.21 | 1.17 | Beat +3.6% |
| Sep 2025 | 1.67 | 1.72 | Miss -2.8% |
Adjusted (non-GAAP) EPS of $1.58 versus the $1.52 analyst consensus — a +3.7% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.23.
Compiled by AI from 10-Q Item 2 of this filing
Midwest Premium pricing had an approximate $40 million unfavorable impact on cost of goods sold in Q2, and the company anticipates a $130 million impact for full-year 2026.
Source: 10-Q Item 2 MD&A
On April 1, 2026, Molson Coors acquired Atomic Brands, Inc., the maker of Monaco Cocktails, for $275 million, expanding into the ready-to-drink cocktail segment.
Source: 10-Q Item 2 MD&A
Consolidated financial volume decreased 5.4% in Q2, driven by lower shipments in the U.S. (core and value brands) and soft market demand in the U.K.
Source: 10-Q Item 2 MD&A
Unrealized mark-to-market losses on commodity derivatives were $98.0 million in Q2, contributing to a 12.1% increase in cost of goods sold per hectoliter.
Source: 10-Q Item 2 MD&A
Net cash provided by operating activities rose 30.7% to $820.4 million in the first half, aided by favorable working capital changes and cash settlement of interest rate swaps.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
The company is exposed to significant fluctuations in aluminum and fuel prices; the $40 million Q2 impact from Midwest Premium alone demonstrates the materiality of this risk, with management projecting $130 million full-year headwind.
Source: 10-Q Financial Statements (XBRL)
A 5.4% volume decline reflects weakening demand for core and value brands, heightened competition, and potential market share losses in key markets like the U.S. and U.K.
Source: 10-Q Financial Statements (XBRL)
Total debt increased substantially as the company issued new senior notes and increased long-term borrowings, pushing debt-to-equity to 1.38; the need to refinance or service higher debt could strain cash flows if earnings decline further.
Source: 10-Q Financial Statements (XBRL)
The $275 million acquisition of Atomic Brands and ongoing ERP system modernization entail execution risks that could disrupt operations or fail to deliver expected returns.
Source: 10-Q Financial Statements (XBRL)
With significant operations outside the U.S., the company is vulnerable to unfavorable currency movements, especially a stronger USD, which eroded pre-tax income by $0.4 million in Q2.
Source: 10-Q Financial Statements (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.60 $B | 3.74 $B | -3.63% |
Cost of Revenue $B | 2.03 $B | 1.92 $B | +5.96% |
Gross Profit $B | 1.06 $B | 1.28 $B | -17.05% |
Operating Income $M | 331.90 $M | 583.60 $M | -43.13% |
Net Income $M | 231.70 $M | 428.70 $M | -45.95% |
EPS (Basic) $ | 1.24 $ | 2.14 $ | -42.06% |
EPS (Diluted) $ | 1.23 $ | 2.13 $ | -42.25% |
SG&A Expense $M | 718.50 $M | 693.10 $M | +3.66% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Insufficient filing data is available to provide a meaningful one-sentence summary for TAP's 2026-Q1 10-Q filing.
Molson Coors (TAP) reported a sharp swing to a net loss of $2.14B in FY2025, driven by a massive $4.09B non-cash impairment charge that overwhelmed otherwise stable operating fundamentals, while revenue declined 5.1% to $13.04B.