Business
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
About this update from Keurig Dr Pepper Inc.
[{"type":"text","content":"Strong Q2 Results Fueled by Healthy Top-Line Growth and Cost Discipline\nMomentum in U.S. Refreshment Beverages and International, with Improving U.S. Coffee Trends\nCompany Reaffirms 2025 Constant Currency Net Sales and Adjusted EPS Outlook\nBURLINGTON, 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.\nReported GAAP Basis\nAdjusted Basis1\nQ2\nYTD\nQ2\nYTD\nNet Sales\n$4.16 bn\n$7.80 bn\n$4.16 bn\n$7.80 bn\n% vs prior year\n6.1 %\n5.5 %\n7.2 %\n6.8 %\nDiluted EPS\n$0.40\n$0.78\n$0.49\n$0.91\n% vs prior year\n5.3 %\n11.4 %\n11.1 %\n9.5 %\nCommenting on the quarter, CEO Tim Cofer stated, \"Our Q2 results cemented a strong first half of the year, as we drove robust performance in U.S. Refreshment Beverages, good growth in International, and sequential progress in U.S. Coffee. Today's dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda. Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead.\"\nSecond Quarter Consolidated Results\nNet sales for the second quarter increased 6.1% to $4.2 billion. On a constant currency basis, net sales advanced 7.2%, driven by volume/mix growth of 5.0% and favorable net price realization of 2.2%. The acquisition of GHOST contributed 4.0 percentage points to volume/mix growth.\nGAAP operating income increased 4.3% to $898 million, including an unfavorable year-over-year impact of items affecting comparability. Adjusted operating income increased 7.0% to $1,028 million and totaled 24.7% of net sales. GAAP and Adjusted operating income growth were driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures.\nGAAP 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. Adjusted diluted EPS growth was driven by the Adjusted operating income growth. \nOperating cash flow for the second quarter was $431 million and free cash flow totaled $325 mill...