Core Insights - Anheuser-Busch InBev SA/NV (AB InBev) reported fourth-quarter 2025 results with earnings per share (EPS) exceeding estimates while revenues fell short, although both metrics improved year over year, driven by strong consumer demand and a diversified portfolio [1][2][3] Financial Performance - The underlying EPS for Q4 2025 was 95 cents, reflecting a 7.5% year-over-year increase and surpassing the Zacks Consensus Estimate of 92 cents [2][6] - Revenues reached $15.55 billion, missing the Zacks Consensus Estimate of $15.58 billion but showing a 4.8% year-over-year growth, with organic revenues increasing by 2.5% [3][6] - Revenue per hectoliter (hl) improved by 4% year over year, supported by premiumization and disciplined revenue management [4][6] Volume and Market Dynamics - Organic volume declined by 1.5%, with a 1.9% drop in beer volume attributed to weak demand and adverse weather conditions, partially offset by a 0.6% increase in non-beer volume [4][7] - The performance of premium and super premium beer brands contributed significantly to revenue growth, with megabrands seeing a 4.1% increase in revenues year over year [8] Strategic Initiatives - AB InBev has focused on expanding its Beyond Beer portfolio, which recorded a 23% revenue rise in 2025, driven by significant growth in the Cutwater brand [10] - The company has invested in digital platforms, with B2B digital initiatives contributing approximately 72% to its revenues in 2025, generating $1.3 billion [9] Cost and Margin Analysis - The cost of sales increased by 4.5% to $6.9 billion, while SG&A expenses rose by 4% to $4.8 billion [10] - Normalized EBITDA was $5.47 billion, reflecting a 4.3% year-over-year improvement, with a slight contraction in the EBITDA margin to 35.2% [12] Future Outlook - For 2026, AB InBev anticipates EBITDA growth of 4-8%, supported by strong execution and market momentum [14][15] - The company expects net capital expenditure to be between $3.5 billion and $4 billion in 2026, with a normalized effective tax rate projected at 26-28% [16]

Financial Data and Key Metrics Changes - In 2025, the company achieved dollar-based EPS growth of 6% to $3.73 per share, with a 9.4% increase in constant currency [22][26] - EBITDA increased by 4.9%, with margin expansion of 101 basis points, resulting in a revenue per hectoliter increase of 4.4% [7][21] - Free cash flow was maintained at $11.3 billion, allowing for increased share buybacks and a 15% increase in total dividends compared to the previous year [7][24] Business Line Data and Key Metrics Changes - The Mega Brands and premium portfolio outperformed the overall business, with the Beyond Beer and non-alcohol beer portfolios growing revenues by 23% and 34%, respectively [6][15] - The BEES Marketplace GMV increased by 61% to $3.5 billion, indicating strong growth in the digital marketplace segment [6][17] Market Data and Key Metrics Changes - Revenue increased in 65% of the company's markets, with EBITDA growth in four of five operating regions [8] - In the U.S., market share gains were noted in both beer and spirits, with significant growth from brands like Michelob ULTRA and Cutwater [9][10] - In China, revenue declined by low teens, but market share trends improved towards the end of the year [11][45] Company Strategy and Development Direction - The company continues to focus on premiumization, innovation, and expanding its digital ecosystem through the BEES Marketplace [12][18] - The strategy emphasizes long-term growth drivers such as balanced choices, premiumization, and the Beyond Beer segment [33][60] - The company aims to leverage its diversified geographic footprint to capture future industry growth, particularly in emerging markets [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2026 outlook, citing improved momentum as the company exited 2025 and the upcoming FIFA World Cup as a significant opportunity [26][33] - The operating environment in 2025 was described as dynamic, with challenges in consumer demand and weather impacting performance [26][32] Other Important Information - The company invested $7.4 billion in sales and marketing in 2025, maintaining an average of over $7 billion per year since 2021 [12] - The company has a strong focus on sustainability, achieving goals in water and agriculture while making progress in climate and packaging objectives [24][25] Q&A Session Summary Question: Insights on beer as a passion point for consumers - Management emphasized the role of beer in bringing people together and creating moments of celebration, highlighting the importance of moderate consumption [30][31] Question: Key elements of the U.S. market turnaround - Management noted the importance of consistency and long-term investment strategies in the U.S. market turnaround, with a focus on portfolio rebalancing and brand innovation [37][39] Question: Update on China’s commercial execution - Management reported progress in penetrating the off-trade channel and noted stabilization in the on-trade channel, with cautious optimism for 2026 [43][45] Question: Competitive dynamics in Brazil - Management indicated that improved weather conditions and closing price gaps contributed to positive momentum in Brazil, with strong brand demand continuing into the new year [46][47] Question: Thoughts on phasing in 2026 - Management acknowledged the unique dynamics of 2026, particularly with the World Cup, and indicated a concentration of marketing investments in the second and third quarters [64][67] Question: CapEx sustainability - Management expressed confidence in maintaining low CapEx levels through efficiency and technology, ensuring support for business needs [68][69] Question: Potential of BEES Marketplace - Management highlighted the growth opportunity in the BEES Marketplace, particularly in the third-party segment, which is becoming increasingly profitable [72][75] Question: Growth in non-alcohol beer and RTDs - Management attributed high growth in non-alcohol beer to superior product quality and technology investments, with plans for further expansion in the U.S. [79][80]

Financial Data and Key Metrics Changes - In 2025, the company achieved dollar-based EPS growth of 6% and a 9.4% increase in constant currency, with underlying EPS reaching $3.73 per share [22][26] - EBITDA increased by 4.9%, with margin expansion of 101 basis points, resulting in a revenue per hectoliter increase of 4.4% and top-line growth of 2% [7][21] - Free cash flow was maintained at $11.3 billion, allowing for increased share buybacks and a proposed final dividend representing a 15% increase year-over-year [23][24] Business Line Data and Key Metrics Changes - The Mega Brands and premium portfolio grew ahead of the overall business, with Beyond Beer and non-alcohol beer portfolios increasing revenue by 23% and 34%, respectively [6][15] - The BEES Marketplace GMV increased by 61% to reach $3.5 billion, indicating strong growth in the digital marketplace segment [6][17] Market Data and Key Metrics Changes - Revenue increased in 65% of the company's markets, with notable performance in the U.S., Mexico, and Colombia, while China experienced a low teens revenue decline [8][9][11] - In the U.S., the company gained market share in both beer and spirits, with significant growth from brands like Michelob ULTRA and Cutwater [9][10] Company Strategy and Development Direction - The company continues to focus on premiumization, innovation, and expanding its digital ecosystem, with a strong emphasis on the growth of Beyond Beer and non-alcohol segments [12][15][19] - The company aims to leverage its diversified geographic footprint to capture future industry growth, particularly in emerging markets where 70% of EBITDA is generated [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for 2026, citing improved momentum in key markets and the upcoming FIFA World Cup as significant opportunities for growth [26][33] - The company remains committed to its long-term strategy, focusing on disciplined revenue management and brand investment despite challenges faced in 2025 [5][26] Other Important Information - The company invested $7.4 billion in sales and marketing in 2025, with a focus on enhancing brand power and market presence [12][13] - The company has a strong innovation pipeline, with new product launches and expansions planned for both the Beyond Beer and non-alcohol segments [15][16] Q&A Session Questions and Answers Question: Insights on the role of beer in consumer culture - Management emphasized that beer brings people together and creates moments of celebration, highlighting the importance of moderate consumption [30][31] Question: Optimism for 2026 and strategy execution - Management noted that the positive outlook for 2026 is due to consistent application of strategy and early signs of market recovery [32][33] Question: Turnaround strategies in the U.S. market - Management discussed the importance of consistency and long-term investment in the U.S. market, with a focus on portfolio rebalancing and brand innovation [38][39] Question: Progress in China and market dynamics - Management acknowledged challenges in China but noted improvements in market share and execution, particularly in the off-trade channel [43][46] Question: Competitive dynamics in Brazil - Management highlighted the return to growth in Brazil, attributing it to improved weather conditions and effective brand execution [47][48] Question: Margin outlook for 2026 - Management indicated that there are opportunities for further margin expansion, driven by premium brands and operational efficiency [52][56] Question: Beyond Beer business potential - Management expressed confidence in the growth potential of the Beyond Beer segment, with significant headroom for expansion in the U.S. market [60][61] Question: CapEx sustainability and efficiency - Management reassured that the current level of CapEx is sustainable, supported by technology and efficiency improvements [68][69]

FY & 4Q25 Results February 12, 2026 Legal disclaimer Certain statements contained in this report that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of the Company with the competent securities regulators or other authorities, in press releases, and in oral and written statements made by or with the approval of the Company that are not sta ...

Financial Data and Key Metrics Changes - In Q3 2025, the company reported top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [8][21] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][22] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [8][22] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][8] - In the U.S., the portfolio saw a revenue increase in the mid-40s, led by Cutwater, which grew revenue in the triple digits [9] - Michelob ULTRA became the number one brand in the industry by volume year-to-date, gaining market share in all 50 states [5][9] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [7][8] - In China, revenue declined by 15.2%, with volumes underperforming the industry due to a soft consumer environment [13] - In Brazil, revenue declined by 1.9% due to unseasonable weather and a softer consumer environment, but market share gains were achieved [11][12] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including investments in brands and innovations to drive market share gains [4][5] - A $6 billion share buyback program was approved, alongside an interim dividend of EUR 0.15 per share, reflecting confidence in long-term growth [7][22] - The company aims to enhance its execution in China and strengthen its route to market, particularly in the in-home channels [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][40] - The company anticipates that the FIFA World Cup in North America in 2026 will provide significant opportunities for growth [25][40] Other Important Information - The company reported strong free cash flow generation, which has increased capital allocation flexibility [6][22] - The partnership with Netflix was announced, aiming to create co-marketing campaigns and enhance consumer experiences [16] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [27][29] Question: Outlook for global beer volume growth - Management noted that the potential for category growth remains around 1% under normal conditions, with opportunities for expansion in developing markets [30][31] Question: Volume growth outlook for 2026 - Management expressed optimism for volume growth in 2026, particularly with the FIFA World Cup and improving consumer sentiment [40][41] Question: Impact of input costs in 2026 - Management stated that they do not provide specific guidance on cost of goods sold but highlighted that hedging policies are in place to manage FX impacts [43][45] Question: Performance in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [52][76] Question: Beyond beer category growth - Management indicated that beyond beer now represents around 2% of total volume and is growing rapidly, with higher profitability compared to traditional beer SKUs [81][82] Question: Gross margin performance - Management attributed gross margin performance to a strong brand portfolio and operational efficiencies, with ongoing opportunities for improvement [84][85]

Financial Data and Key Metrics Changes - In Q3 2025, the company experienced top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [8][21] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][22] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of premium brands [8][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][8] - In the U.S., the portfolio saw a revenue increase in the mid-40s, led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2%, with volumes underperforming the industry due to a soft consumer environment [13] - In Brazil, revenue declined by 1.9% due to unseasonable weather and a softer consumer environment, but market share gains were achieved [11][12] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including investments in brands and innovations to drive market share gains [4][5] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [7][22] - The partnership with Netflix aims to create co-marketing campaigns and enhance consumer experiences, integrating beer with entertainment [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][40] - The company anticipates a significant opportunity in 2026 with the FIFA World Cup in North America, which is expected to enhance brand visibility and consumer engagement [25][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [7][22] - The growth of the non-alcohol beer segment is seen as a key opportunity, with the portfolio growing by 27% [15][81] Q&A Session Summary Question: Thoughts on the $6 billion buyback program and its implications for capital allocation - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [27][29] Question: Outlook for global beer volume growth - Management noted that the medium-term outlook for global beer is around 1% growth, with potential for further growth through beyond beer propositions [28][30] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, particularly with the FIFA World Cup and improving consumer sentiment [40][41] Question: Impact of input costs and FX on 2026 - Management stated that while they do not provide specific guidance on costs, they hedge 12 months ahead and expect a more normalized environment in 2026 [43][45] Question: Performance in Latin America, particularly Brazil and Colombia - Management highlighted that while Brazil faced challenges due to weather, Colombia continued to show strong performance and volume growth [52][53] Question: Insights on the Champions League sponsorship and ROI - Management emphasized the importance of integrating brands with major events and cultural moments to enhance long-term brand positioning [62][63] Question: Success of Cutwater and its sustainability - Management noted that Cutwater has become a top 10 spirits brand in the U.S., driven by consistent brand building and strategic investments [66][67]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [7][21][25] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][25] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [7][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][6] - In the U.S., revenue growth in the mid-40s was led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2% due to a soft consumer environment, with the company focusing on enhancing execution and route to market [13][14] - In Brazil, revenue declined by 1.9% driven by unseasonable weather, but market share gains and disciplined management offset the decline [11][12] Company Strategy and Development Direction - The company is focused on consistent execution of its strategy, investing in brand power and innovation to drive market share gains [5][6] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [6][24] - The company aims to leverage partnerships, such as with Netflix, to enhance brand visibility and consumer engagement [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][41] - The company anticipates a strong performance in 2026, driven by events like the FIFA World Cup in North America [27][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [6][24] - The non-alcohol beer segment is seen as a key growth opportunity, with net revenue growing by 27% [16][86] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [30][32] Question: Outlook for global beer volume growth - Management noted that the long-term potential for the beer category is around 1% growth, with opportunities for further growth through beyond beer propositions [34][35] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, citing reduced consumer pressure from lower inflation and the impact of the FIFA World Cup [41][42] Question: Impact of input costs in 2026 - Management did not provide specific guidance on input costs but indicated that hedging policies are in place to manage FX risks [45][47] Question: Consumer improvement in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [56][57] Question: Performance of Cutwater brand - Management highlighted Cutwater's significant growth, becoming one of the top 10 spirits brands in the U.S., and emphasized the brand's potential for further expansion [70][71]

Financial Performance - The company's EBITDA increased by 3.3% in 3Q25[12] - The company's revenue per hl grew by 4.8% in 3Q25[13] - The company announced a share buyback program of $6 billion[12] - The company announced a debt redemption of $2 billion[12] - The company announced an interim dividend of €0.15 per share[12] - The company's underlying EPS (USD) increased by 1.0%[13] Regional Performance - North America's revenue decreased by 0.7%[17] - Middle Americas' revenue increased by 4.2%[17] - South America's revenue increased by 2.0%[17] - EMEA's revenue increased by 3.0%[17] - APAC's revenue decreased by 9.0%[17] Brand Performance - No-alcohol beer revenue increased by 27%[12] - Beyond Beer revenue increased by 27%[12] - BEES Marketplace quarterly GMV increased by 66%, approaching $1 billion[12]

Core Insights - Anheuser-Busch is investing over $300 million in U.S. facilities in 2025, with a specific $9 million investment in its Baldwinsville, NY brewery [1][2][5] - The investments are part of the Brewing Futures initiative aimed at creating and sustaining American manufacturing jobs [2][3] - Over the past five years, Anheuser-Busch has invested more than $2 billion in its manufacturing facilities across the U.S. [1][5] Investment Details - The $9 million investment in Baldwinsville will enhance operations and expand production capacity for both traditional beer and fast-growing Beyond Beer products [3][4] - The investment includes maintenance of brewery equipment and updates to refrigeration units [3] - Anheuser-Busch has made nearly $90 million in investments in the Baldwinsville brewery over the past five years [4] Economic Impact - Anheuser-Busch operates over 100 facilities nationwide and employs approximately 65,000 individuals [5] - The company has made over $1.6 billion in capital investments in New York State since 1983 [4] - The company sources over $700 million in high-quality ingredients from American farmers and has purchased more than $7 billion in goods and services from U.S. suppliers [7] Strategic Focus - The Brewing Futures initiative focuses on three key pillars: creating and sustaining manufacturing jobs, advancing technical skills training, and strengthening career opportunities for veterans [8] - Anheuser-Busch emphasizes its commitment to supporting the communities where its employees live and work [4][9]

Core Insights - Anheuser-Busch InBev SA/NV (AB InBev) reported second-quarter 2025 results with earnings per share (EPS) exceeding estimates and showing year-over-year improvement, while revenues declined and missed consensus estimates [1][2][3] Financial Performance - Underlying EPS was 98 cents, an increase of 8.7% year over year, driven by 10.2% EBIT growth and optimized net finance costs, surpassing the Zacks Consensus Estimate of 94 cents [2][6] - Revenues totaled $15 billion, missing the Zacks Consensus Estimate of $15.33 billion and reflecting a 2.1% year-over-year decline, although organic revenue grew by 3% across 70% of markets [3][4] - Revenue per hectoliter improved by 4.9% year over year, supported by revenue-management initiatives [4][6] Volume and Market Performance - Total organic volume decreased by 1.9%, with a 2.2% decline in own-beer volume, partially offset by a 0.3% increase in non-beer volume, primarily affected by soft market conditions in China and Brazil [4][6] - Excluding China and Brazil, volume increased by 0.7%, indicating strong momentum in other markets [7] Brand Performance - Megabrands, particularly Corona, contributed to a 5.6% revenue increase, with Corona seeing a 7.7% revenue rise outside of Mexico [6][7] - The Beyond Beer portfolio recorded a 6.4% revenue rise, driven by significant growth in brands like Cutwater and Nütrl in the U.S. [9] Cost Management - Cost of sales decreased by 3.1% to $6.6 billion, while SG&A expenses fell by 3.9% year over year to $4.6 billion [9][11] - Normalized EBITDA was $5.3 billion, nearly flat year over year, with an organic growth of 6.5% and an expanded EBITDA margin of 35.3% [11] Future Outlook - For 2025, AB InBev anticipates EBITDA growth of 4-8%, with projected net capital expenditure between $3.5 billion and $4 billion [13]