Core Insights - Keurig Dr Pepper Inc. (KDP) reported second-quarter 2025 results with both revenue and earnings showing year-over-year improvement, exceeding the Zacks Consensus Estimate [1][6] - Adjusted earnings per share (EPS) reached 49 cents, reflecting an 8.9% increase year over year, aligning with expectations [1][6] - The growth in adjusted operating income was a key driver for the bottom-line improvement [1] Financial Performance - Net sales for the quarter were $4.16 billion, a 6.1% increase year over year, surpassing the Zacks Consensus Estimate of $4.14 billion [6][9] - On a constant-currency basis, net sales improved by 7.2%, supported by a 5% increase in volume/mix and a favorable net price realization of 2.2% [6] - Adjusted gross profit rose 4.0% year over year to $2.29 billion, while the adjusted gross margin decreased by 110 basis points to 55% [6] - Adjusted operating income increased by 5.9% year over year to $1.028 billion, driven by higher sales and productivity savings [7] Segment Performance - U.S. Refreshment Beverages segment sales increased by 10.5% year over year to $2.7 billion, supported by market share gains and the acquisition of GHOST [10][9] - U.S. Coffee segment sales slightly declined by 0.2% to $948 million, with pricing actions indicating early recovery signs despite a volume/mix decline [11][9] - International segment sales fell by 1.8% year over year to $555 million, but increased by 5.7% on a constant-currency basis [12] Financial Health - As of June 30, 2025, KDP had cash and cash equivalents of $509 million, long-term obligations of $13.9 billion, and total stockholders' equity of $24.9 billion [13] - Net cash provided by operating activities was $640 million, with free cash flow amounting to $427 million [13] 2025 Outlook - KDP reaffirmed its guidance for 2025, projecting mid-single-digit net sales growth and high-single-digit adjusted EPS growth on a constant currency basis [14] - Foreign currency translation is expected to be a nearly one percentage point headwind on growth for both top and bottom lines [14]

Core Insights - Keurig Dr Pepper, Inc (KDP) reported quarterly earnings of $0.49 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.45 per share a year ago [1] - The company achieved revenues of $4.16 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.65% and up from $3.92 billion year-over-year [2] - The stock has gained approximately 4.3% since the beginning of the year, underperforming compared to the S&P 500's gain of 8.1% [3] Earnings Performance - KDP's earnings for the previous quarter were initially expected to be $0.38 per share, but the actual earnings were $0.42, resulting in a surprise of +10.53% [1] - Over the last four quarters, KDP has surpassed consensus EPS estimates two times [1] Revenue Performance - The company has topped consensus revenue estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.54, with expected revenues of $4.13 billion, and for the current fiscal year, the estimate is $2.04 on revenues of $16.22 billion [7] Market Outlook - The sustainability of KDP's stock price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Industry Rank places Beverages - Soft drinks in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] Estimate Revisions - The estimate revisions trend for KDP was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2025 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Reports a 6.1% increase in Q2 net sales to $4.2 billion and a 9.8% rise in H1 net income to $1.1 billion Condensed Consolidated Statements of Income (Q2 & First Six Months) | (in millions, except per share data) | Q2 2025 | Q2 2024 | YoY Change | First Six Months 2025 | First Six Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $4,163 | $3,922 | 6.1% | $7,798 | $7,390 | 5.5% | | **Gross profit** | $2,255 | $2,172 | 3.8% | $4,240 | $4,112 | 3.1% | | **Income from operations** | $898 | $861 | 4.3% | $1,699 | $1,626 | 4.5% | | **Net income** | $547 | $515 | 6.2% | $1,064 | $969 | 9.8% | | **Diluted EPS** | $0.40 | $0.38 | 5.3% | $0.78 | $0.70 | 11.4% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $54.4 billion, with stockholders' equity increasing to $25.0 billion as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights | (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $4,606 | $3,997 | | **Goodwill** | $20,228 | $20,053 | | **Other intangible assets, net** | $23,841 | $23,634 | | **Total assets** | $54,368 | $53,430 | | **Total current liabilities** | $7,221 | $8,087 | | **Long-term obligations** | $13,920 | $12,912 | | **Total liabilities** | $29,383 | $29,187 | | **Total stockholders' equity** | $24,985 | $24,243 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for the first six months decreased to $640 million from $742 million year-over-year Cash Flow Summary (First Six Months) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $640 | $742 | | **Net cash used in investing activities** | $(278) | $(329) | | **Net cash used in financing activities** | $(409) | $(222) | | **Net change in cash, cash equivalents, etc.** | $(47) | $191 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details significant events including a $2 billion debt issuance, the Dyla acquisition, and ongoing litigation - On May 5, 2025, the company issued an aggregate principal amount of **$2 billion in new senior unsecured notes** to repay outstanding commercial paper[31](index=31&type=chunk) - On June 2, 2025, KDP completed the acquisition of Dyla, a powdered drink mix company, for aggregate consideration of **$98 million**[41](index=41&type=chunk) - The company is involved in a multidistrict antitrust litigation where plaintiffs claim over **$5 billion in damages**, for which no loss contingency has been accrued[97](index=97&type=chunk)[98](index=98&type=chunk) - A restructuring program for network optimization is expected to incur pre-tax charges of **$150 million to $170 million** through 2026[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial results, highlighting a 6.1% Q2 net sales growth driven by the GHOST acquisition [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 consolidated net sales rose 6.1% to $4.2 billion, driven by the U.S. Refreshment Beverages segment Consolidated Operations Summary (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $4,163 | $3,922 | 6.1% | | **Gross profit** | $2,255 | $2,172 | 3.8% | | **Income from operations** | $898 | $861 | 4.3% | | **Net income** | $547 | $515 | 6.2% | - The acquisition of GHOST was a significant driver of growth, contributing **4.0 percentage points** to consolidated volume/mix growth in Q2 2025[116](index=116&type=chunk)[128](index=128&type=chunk) Consolidated Operations Summary (First Six Months 2025 vs 2024) | ($ in millions) | First Six Months 2025 | First Six Months 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $7,798 | $7,390 | 5.5% | | **Gross profit** | $4,240 | $4,112 | 3.1% | | **Income from operations** | $1,699 | $1,626 | 4.5% | | **Net income** | $1,064 | $969 | 9.8% | [Results of Operations by Segment](index=35&type=section&id=Results%20of%20Operations%20by%20Segment) U.S. Refreshment Beverages sales grew 10.5%, while U.S. Coffee sales were flat and International sales declined Net Sales by Segment (Q2 2025 vs Q2 2024) | (in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **U.S. Refreshment Beverages** | $2,660 | $2,407 | 10.5% | | **U.S. Coffee** | $948 | $950 | (0.2)% | | **International** | $555 | $565 | (1.8)% | - U.S. Coffee segment performance was impacted by a **22.6% decrease in appliance volume** and a **3.7% decrease in K-Cup pod volume** in Q2 2025[127](index=127&type=chunk)[131](index=131&type=chunk) - International segment net sales were significantly impacted by unfavorable foreign exchange, which had a **negative 7.5% effect** in Q2 2025[128](index=128&type=chunk)[149](index=149&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Details a strong liquidity position supported by cash from operations and a $4 billion credit facility - Principal sources of liquidity are cash from operations and a **$4 billion revolving credit agreement**[159](index=159&type=chunk) - Net cash provided by operating activities **decreased by $102 million** in the first six months of 2025 compared to the prior year[160](index=160&type=chunk) - No common stock was repurchased during the first six months of 2025, with **$1,810 million remaining available** under the program[167](index=167&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to market risk disclosures from the most recent Annual Report on Form 10-K - There have been **no material changes** to the disclosures on market risk from the company's most recent Annual Report[179](index=179&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures are **effective**[181](index=181&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended June 30, 2025[182](index=182&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 15 for details on commitments, contingencies, and ongoing antitrust litigation - Information regarding legal proceedings is detailed in **Note 15** of the Notes to the Unaudited Consolidated Financial Statements[185](index=185&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) States no material changes from the risk factors disclosed in the company's Annual Report on Form 10-K - There have been **no material changes** from the risk factors set forth in the company's Annual Report[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no share repurchases in Q2 2025, with $1.81 billion remaining under the current authorization - The company **did not repurchase any shares** during the second quarter of 2025 under its authorized share repurchase program[188](index=188&type=chunk) - As of June 30, 2025, **$1,810 million remained available** for repurchase under the current $4 billion authorization[188](index=188&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Confirms no directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans in Q2 - **No directors or executive officers** adopted, modified, or terminated any Rule 10b5-1 trading plans during the second quarter of 2025[190](index=190&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and corporate governance documents

Financial Data and Key Metrics Changes - The company reported a 7.2% increase in net sales in constant currency for Q2 2025, driven by both price and volume mix [30][31] - Gross margin contracted by 110 basis points due to inflationary pressures, despite pricing and productivity savings [32] - Operating income grew by 7% with operating margins remaining steady compared to the prior year [32] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages segment saw net sales grow by 10.5%, primarily driven by volume mix and the Ghost acquisition contributing 6.6 percentage points [33] - The U.S. Coffee segment experienced a slight decline of 0.2% in net sales, although there was notable sequential improvement from the first quarter [35] - International segment net sales increased by 5.7%, supported by net price realization and a slight volume mix increase [37][28] Market Data and Key Metrics Changes - The energy portfolio achieved a market share of 7%, up from below 1% just a few years ago, with a 30% retail sales growth in Q2 [19][20] - Electrolite, a sports hydration brand, registered over 30% retail sales growth and gained market share in its category [10] - The carbonated soft drink category remains strong, with Doctor Pepper and 7UP contributing to market share gains [50] Company Strategy and Development Direction - The company is focused on five strategic pillars aimed at long-term value creation, including brand building and portfolio reshaping [6] - The acquisition of Diala brands aims to expand KDP's presence in the powdered drink mixes and liquid water enhancers category [10] - The company is investing in its direct store delivery (DSD) network to enhance distribution efficiency and market presence [75][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising cost pressures and consumer caution but remains confident in achieving the full-year outlook [5][30] - The company expects some margin pressure in the second half of 2025 due to inflation and tariffs, but plans to manage these dynamics effectively [41][62] - There is optimism regarding the U.S. Coffee segment's long-term growth potential despite short-term challenges [62] Other Important Information - The company generated $325 million in free cash flow in Q2, with expectations for further acceleration in the second half [38] - The capital allocation strategy remains balanced, focusing on organic and inorganic investments, strengthening the balance sheet, and returning cash to shareholders [39] Q&A Session Summary Question: Evolution of U.S. Refreshment Portfolio - Management highlighted strong contributions from both the base business and new partner additions, with expectations for continued robust growth in the U.S. Refreshment Beverages segment [49][51] Question: Outlook for Coffee Segment - Management expressed satisfaction with sequential improvement in U.S. Coffee but noted challenges ahead due to commodity inflation and tariffs [56][60] Question: Top Line Growth Without Acquisitions - Management reaffirmed confidence in achieving mid-single-digit growth through existing business strategies and operational efficiencies [67][70] Question: Infrastructure for Doctor Pepper Brand - Management emphasized the importance of DSD and ongoing investments to enhance capabilities and support the addition of Doctor Pepper in new regions [75][78] Question: Pricing Dynamics in U.S. Liquid Refreshment Beverages - Management indicated positive net price realization driven by carbonated soft drinks and ongoing pricing strategies to address consumer affordability [84][88] Question: Marketing Changes and ROI - Management discussed a marketing transformation focused on data and digital strategies to enhance consumer engagement and drive demand [92][94] Question: Protein Beverage Space and Diala Acquisition - Management acknowledged the growing consumer interest in health and wellness, including protein beverages, and highlighted the strategic fit of the Diala acquisition in this context [99][102]

Financial Data and Key Metrics Changes - The company reported a strong enterprise growth with net sales increasing by 7% in Q2, driven by both price and volume mix [12][30] - Gross margin contracted by 110 basis points due to inflationary pressures, despite pricing and productivity savings [32] - EPS grew double digits in Q2, contributing to nearly 10% growth in the first half of the year [32] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages saw net sales grow almost 11%, with strong performance in carbonated soft drinks led by Doctor Pepper, 7UP, and Canada Dry [14][30] - The energy segment, including brands like Ghost and C4, contributed significantly, with Ghost adding four percentage points to the top line [33][19] - U.S. Coffee segment net sales declined modestly by 0.2%, but showed sequential improvement with a strengthening pod category [35][21] Market Data and Key Metrics Changes - International segment net sales increased by 6%, driven by pricing and market share gains in key categories [28][30] - The company gained market share in the U.S. liquid refreshment beverages, with Doctor Pepper on track for its ninth consecutive year of market share growth [51][30] - The energy portfolio achieved a 7% market share, up from below 1% just a few years ago [19][30] Company Strategy and Development Direction - The company is focused on long-term value creation through five strategic pillars, including brand building and portfolio reshaping [6][5] - The acquisition of Diala brands aims to expand presence in the powdered drink mixes and liquid water enhancers category [9][100] - The company is investing in its direct store delivery (DSD) network to enhance distribution efficiency and support growth [75][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising cost pressures and consumer caution but remains on track to achieve full-year outlook [5][30] - The company expects some margin pressure in the back half of the year due to inflation and tariffs, but anticipates continued top-line momentum [42][30] - Management expressed confidence in returning the U.S. Coffee segment to consistent long-term growth despite facing challenges [62][21] Other Important Information - The company generated $325 million in free cash flow in Q2, with expectations for further acceleration in the second half [39][30] - The capital allocation strategy remains balanced, focusing on organic and inorganic investments, strengthening the balance sheet, and returning cash to shareholders [40][30] Q&A Session Summary Question: Evolution of U.S. Refreshment Portfolio - Management highlighted strong contributions from both the base business and new partner additions, with expectations for continued robust growth [50][52] Question: Outlook for U.S. Coffee Segment - Management noted sequential improvement in U.S. Coffee but anticipated challenges in the back half due to commodity inflation and tariffs [56][62] Question: Pricing Dynamics in U.S. Liquid Refreshment Beverages - Management confirmed positive contributions from net price realization and emphasized the importance of monitoring consumer behavior in an inflationary environment [79][82] Question: Marketing Changes and ROI - Management discussed a marketing transformation focused on data and digital strategies to enhance consumer engagement and drive demand [90][92] Question: Protein Beverage Space and Diala Acquisition - Management acknowledged the growing consumer interest in health and wellness, including protein beverages, and expressed excitement about the Diala acquisition to penetrate this market [99][100]

Second Quarter 2025 Earnings Conference Call July 24, 2025 Safe Harbor and Non-GAAP Financial Measures Note Regarding Forward-Looking Statements: SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc. All Rights Reserved Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding: our forecast; our outlook; market conditions, s ...

EXHIBIT 99.1 Keurig Dr Pepper Reports Q2 2025 Results and Reaffirms Guidance for 2025 Strong Q2 Results Fueled by Healthy Top-Line Growth and Cost Discipline Momentum in U.S. Refreshment Beverages and International, with Improving U.S. Coffee Trends GAAP net income increased 6.2% to $547 million, or $0.40 per diluted share, including an unfavorable year-over-year impact of items affecting comparability. Adjusted net income increased 10.5% to $673 million and Adjusted diluted EPS increased 11.1% to $0.49. Ad ...

Strong Q2 Results Fueled by Healthy Top-Line Growth and Cost Discipline Momentum in U.S. Refreshment Beverages and International, with Improving U.S. Coffee Trends Company Reaffirms 2025 Constant Currency Net Sales and Adjusted EPS Outlook BURLINGTON, Mass. and FRISCO, Texas, July 24, 2025 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2025 and reaffirmed its full year guidance. | | Reported GAAP Basis Adjusted Basis1 | | | | | --- | --- | --- | --- | -- ...

Core Insights - Keurig Dr Pepper (KDP) is scheduled to release its earnings on July 24, 2025, with historical trends indicating a tendency for negative one-day returns post-announcement [2][3] - Analysts project earnings of $0.49 per share and sales of $4.14 billion for the upcoming quarter, reflecting growth from last year's earnings of $0.45 per share and sales of $3.92 billion [3] - The company has a market capitalization of $45 billion, with $16 billion in revenue over the last twelve months, resulting in operating profits of $3.3 billion and a net income of $1.5 billion, showcasing strong operational profitability [4] Historical Performance - Over the past five years, KDP has recorded 15 earnings data points, with 7 positive and 8 negative one-day returns, resulting in positive returns approximately 47% of the time [7] - The median of the 7 positive returns is 2.4%, while the median of the 8 negative returns is -1.9% [7] - The percentage of positive one-day returns increases to 67% when analyzing data from the last 3 years [7] Trading Strategies - Traders may consider establishing positions prior to the earnings announcement based on historical probabilities [6] - Post-earnings analysis can help traders evaluate the relationship between immediate and medium-term returns to inform their positioning [6] - A strategy involving the correlation between short-term and medium-term returns can be employed, particularly if a strong correlation exists between 1D and 5D returns [8]

Key Takeaways SJM raised coffee prices to counter green coffee inflation and tariff-driven import cost increases. U.S. Retail Coffee sales rose 11% in Q4 FY25 on stronger net pricing, though volume/mix stayed flat. FY26 outlook expects 20% pricing but a 10% volume drop as consumers react to higher coffee prices.The J.M. Smucker Company’s ((SJM) coffee prices are influenced by several factors like raw ingredient costs, tariffs, evolving consumer patterns and broader market volatility. The company has been ...