Anheuser-Busch InBev SA/NV (BUD) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary highlights strong financial performance, including a 6% EPS increase and significant debt management. The $6 billion share buyback and dividend increase are positive shareholder return signals. The Q&A session revealed optimism for 2026 with strategic growth drivers and market expansion plans. Despite some unclear guidance, the positive momentum in non-alcohol beer, BEES marketplace, and Beyond Beer segment supports a positive outlook. Considering these factors, the stock price is likely to experience a positive movement in the near term.
Key Financial Performance
Revenue Revenue per hectoliter increased by 4.4% this year, resulting in top-line growth of 2%. This was driven by disciplined revenue management and a portfolio of mega brands commanding premium prices.
EBITDA EBITDA increased by 4.9% with margin expansion of 101 basis points. Productivity initiatives offset transactional FX headwinds.
Free Cash Flow Solid free cash flow generation enabled an increase in the share buyback program, payment of an interim dividend, and a proposed final dividend representing a 15% increase versus last year.
Beyond Beer Revenue Revenue increased by 23% in 2025, led by Cutwater in the U.S., which grew revenue in the triple digits.
Non-Alcohol Beer Revenue Revenue increased by 34% in 2025, led by Corona Cero globally and Michelob ULTRA Zero in the U.S.
BEES Marketplace GMV GMV increased by 61% to reach $3.5 billion in 2025, driven by the growth of the BEES Marketplace.
Underlying EPS Underlying EPS was $3.73 per share, a 6% increase versus last year in dollars and a 9.4% increase in constant currency. This was supported by EBITDA growth and lower net interest expense from active debt management.
Debt Management $2.7 billion of debt was repurchased, and despite a $2.8 billion FX headwind, the leverage ratio reached 2.87x.
Dividend The Board proposed a final dividend of EUR 1 per share, representing a total dividend increase of 15% year-over-year.
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Operating Highlights
Beyond Beer and non-alcohol beer portfolios: Revenue increased by 23% and 34%, respectively. BEES Marketplace GMV increased by 61% to $3.5 billion.
Premium beer brands: Premium and super premium beer brands delivered high teens volume growth in 2025 and gained share to lead the premium segment.
Innovations: Innovations across packaging, brands, and liquids contributed 11% of total revenue. Examples include Michelob ULTRA Zero and Busch Light Apple in the U.S., and new packaging formats in China and South Korea.
Geographic footprint: Revenue increased in 65% of markets, with EBITDA growth in 4 of 5 operating regions. Emerging and developing markets generate 70% of EBITDA and are projected to account for over 80% of beer category volume growth through 2029.
Regional performance: North America gained share in beer and spirits, with strong growth in Michelob Ultra and Busch Light. Middle Americas saw growth in Mexico, Colombia, and Brazil. Europe experienced market share gains and premiumization. South Africa and APAC regions showed mixed results, with South Africa gaining market share and China focusing on rebuilding momentum.
Revenue management and productivity: Revenue per hectoliter increased by 4.4%, driving top-line growth of 2%. EBITDA increased by 4.9% with margin expansion of 101 basis points.
Digital platforms: BEES captured $53 billion in GMV, a 12% increase, and served 12.3 million consumers, an 11% increase.
Capital allocation: Increased share buyback program and proposed a 15% higher dividend. Strengthened balance sheet with a leverage ratio of 2.87x.
Sustainability: Achieved water and agriculture goals, with progress in climate and packaging objectives.
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Risk or Challenges
Constrained Consumer Environment: Near-term demand across many CPG categories was impacted by a constrained consumer environment, which could limit revenue growth and affect overall financial performance.
Unseasonal Weather: Unseasonal weather conditions negatively impacted demand and volumes in certain markets, posing a challenge to achieving potential sales.
Transactional FX Headwinds: Foreign exchange headwinds posed challenges to profitability, although productivity initiatives helped offset some of the impact.
Volume Performance: Overall volumes for the year were below potential, which could hinder revenue growth and market share expansion.
China Market Challenges: Revenue in China declined by low teens due to underperformance in volumes and adjustments in inventory levels, reflecting challenges in adapting to channel and geographic shifts.
Debt and FX Headwinds: Despite deleveraging efforts, a $2.8 billion FX headwind from a stronger euro impacted net debt, which could affect financial flexibility.
Sustainability Goals: While progress was made, achieving climate and packaging objectives remains a challenge, which could impact long-term operational efficiency and brand reputation.
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Guidance & Outlook
Revenue Growth: The company expects EBITDA to grow between 4% and 8% on an organic basis in 2026, in line with its medium-term outlook.
Capital Expenditures: Net CapEx is projected to be between $3.5 billion and $4 billion in 2026.
Tax Rate: The normalized effective tax rate is expected to be between 26% and 28% in 2026.
Market Growth: Emerging and developing markets, which generate 70% of the company's EBITDA, are projected to account for more than 80% of beer category volume growth through 2029.
Premium Beer Segment: Premium beer is forecast to grow volumes across all geographic clusters at more than double the rate of the overall beer category.
Beyond Beer Segment: The Beyond Beer category is projected to grow volumes at double the rate of the overall beer category.
Digital Platforms: The BEES Marketplace, which captured $3.5 billion in GMV in 2025, is expected to continue its growth momentum.
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Shareholder Return Plan
Interim Dividend: Paid an interim dividend in 2025.
Final Dividend Proposal: Proposed a final dividend of EUR 1 per share for 2025, representing a total dividend increase of 15% year-over-year.
Dividend Growth: Raised the dividend every year since 2021, with the ambition to continue a progressive dividend over time.
Share Buyback Program: Completed $3.2 billion of share buybacks and are currently executing a further $6 billion program.
Shareholder Return Plan: Solid free cash flow generation enabled an increase in the size of the share buyback program.
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Key Q&A
Q:What is the company's perspective on beer's role in society and its strategy for promoting moderate consumption?
A:The company views beer as a passion point for consumers and a means of bringing people together for moments of celebration and enjoyment. They emphasize the positive attributes of moderate consumption and invest in platforms and innovations to push the category forward.
Q:What is the company's outlook for 2026 and the factors contributing to it?
A:The company is optimistic about 2026 due to consistent application of its strategy, momentum reacceleration in late 2025, and opportunities like the World Cup. Growth drivers such as premiumization, non-alcohol beer, and the BEES marketplace are performing as planned, supporting the unchanged midterm outlook.
Q:What are the key elements of the U.S. market turnaround and how can these strategies be applied globally?
A:The U.S. market turnaround involved rebalancing the portfolio for growth, consistent investment, and hard work. The company plans to apply these strategies to other markets, particularly China, by focusing on execution, channel investment, and team urgency to reignite growth.
Q:What progress has been made in China's off-trade channel and what is the outlook for the on-trade channel?
A:The company is accelerating share gains in the off-trade channel, particularly in the O2O segment, and improving distribution and pricing in large off-premise channels. The on-trade channel has stabilized but has not shown improvement. The company sees opportunities for growth in 2026.
Q:What is the company's perspective on Brazil's market dynamics and recent performance?
A:Brazil faced challenges in 2025 due to high inflation, abnormal weather, and price gaps. However, improved weather and closing price gaps led to strong brand demand and positive momentum at the end of the year, which has continued into early 2026.
Q:What is the company's outlook for margins in 2026 and the factors influencing it?
A:The company sees opportunities for margin expansion driven by efficiency, premium brands, and a strong operating model. Cost pressures are expected to ease in the second half of 2026, and marketing investments will be concentrated around the World Cup.
Q:What is the company's strategy and outlook for the Beyond Beer segment in the U.S.?
A:The Beyond Beer segment represents less than 3% of the U.S. business but is growing rapidly. The company is building brands like Cutwater and leveraging its route-to-market advantages. The segment is margin incremental and has significant growth potential.
Q:What is the company's approach to phasing in 2026 and its CapEx strategy?
A:The company expects cost pressures to ease in the second half of 2026 and plans to concentrate marketing investments in Q2 and Q3 around the World Cup. CapEx remains below depreciation due to efficiency improvements and technology use, which the company believes is sustainable.
Q:What is the potential for scaling the BEES marketplace and its impact on profitability?
A:The BEES marketplace is scaling rapidly, particularly the higher-margin 3P segment. It addresses a larger addressable market by serving underserved customers and enabling CPGs to reach more retailers. The company sees significant growth and profitability potential in this area.
Q:What is driving the company's strong growth in the non-alcohol beer segment?
A:The company attributes its growth to investments in superior product technology, aligning non-alcohol versions with strong brands, and significant marketing efforts. This strategy has led to accelerated share gains and category expansion.
Q:What is the company's strategy for the RTD segment globally?
A:The RTD segment is larger outside the U.S. than within. The company is expanding brands like Flying Fish and Cutwater to multiple countries and sees significant growth potential in this segment globally.
Q:Review of Unclear Management Responses
A:Management avoided providing specific guidance on margins for 2026, instead offering a high-level view of structural opportunities for margin expansion. Additionally, they did not provide detailed updates on the progress of certain initiatives, such as the exact scale of the BEES marketplace or specific actions planned for the RTD segment globally.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BEES Marketplace
Beer category
Budweiser
Cutwater digit
Marketplace GMV
Michelob ULTRA
Mr Doukeris
ULTRA Zero
Zero beer
alcohol beverage
area
balance sheet
base
beer Beer
beer volume
brand premium
climate packaging
deleveraging
digit top
dividend increase
effectiveness
goal
market beer
maturity
momentum market
partner
portfolio Cutwater
portfolio beer
program dividend
resource allocation
segment
start
sustainability
teen volume
top line
trend
water agriculture
BUD Transcript
Anheuser-Busch InBev SA/NV (BUD) Q4 2025 Earnings Call Transcript
Positive2-12
The earnings call summary highlights strong financial performance, including a 6% EPS increase and significant debt management. The $6 billion share buyback and dividend increase are positive shareholder return signals. The Q&A session revealed optimism for 2026 with strategic growth drivers and market expansion plans. Despite some unclear guidance, the positive momentum in non-alcohol beer, BEES marketplace, and Beyond Beer segment supports a positive outlook. Considering these factors, the stock price is likely to experience a positive movement in the near term.
Anheuser-Busch InBev SA/NV (BUD) Q3 2025 Earnings Call Transcript
Positive10-30
The earnings call summary highlights strong financial performance, strategic investments in brand growth, and positive market strategies, particularly in the U.S. and China. The Q&A section reveals optimism for future growth, especially in developing markets and Beyond Beer categories. While management was vague on some cost specifics, the overall sentiment remains positive due to strong brand performance and strategic initiatives. Therefore, a 'Positive' rating is appropriate.
Anheuser-Busch InBev SA/NV (BUD) Q2 2025 Earnings Call Transcript
Positive7-31
The earnings call summary highlights strong financial performance, product innovation, and strategic growth plans. Despite some concerns in markets like Brazil and China, management's confidence in medium-term growth, margin improvements, and strategic event activations indicates a positive outlook. The Q&A session reinforced this sentiment with plans for leveraging major events and focusing on high-growth brands. Given the overall positive tone, strong financial metrics, and optimistic guidance, the stock is likely to experience a positive movement in the coming weeks.
Anheuser-Busch InBev SA/NV (BUD) Q1 2025 Earnings Call Transcript
Positive5-8
The earnings call highlights strong financial performance with record revenue, improved EBITDA margins, and increased shareholder returns via a $1 billion buyback. Despite challenges in China and competitive pressures, the company is optimistic about future volume growth and market strategies, particularly in the U.S. and Mexico. The Q&A session reinforces confidence in long-term growth and strategic investments, with positive analyst sentiment. The positive financial metrics and optimistic guidance suggest a positive stock price movement in the short term.
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