01—Abstract
Summary
Summary of the 8-K filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Keurig Dr Pepper Inc. (NASDAQ: KDP) reported second-quarter 2025 results on July 24, 2025 in a Form 8-K furnishing Exhibit 99.1, a press release titled "Keurig Dr Pepper Reports Q2 2025 Results and Reaffirms Guidance for 2025." Q2 net sales rose 6.1% on a reported basis to $4.16 billiona (7.2% on a constant currency basis), driven by volume/mix growth of 5.0% and net price realization of 2.2%.
GAAP diluted EPS was $0.40b, up 5.3%, while Adjusted diluted EPS rose 11.1% to $0.49. GAAP operating income increased 4.3% to $898 million, and Adjusted operating income increased 7.0% to $1,028 million, or 24.7% of net sales. By segment, U.S. Refreshment Beverages net sales grew 10.5% to $2.7 billion, with volume/mix up 9.5%, reflecting share gains in carbonated soft drinks, energy and sports hydration, and the GHOST acquisition.
U.S. Coffee net sales were roughly flat, down 0.2% to $0.9 billionc, as favorable net price realization of 3.6% was offset by a 3.8% volume/mix decline. International net sales fell 1.8% to $0.6 billion, but rose 5.7% on a constant currency basis. For the first six months, net sales increased 5.5% to $7.80 billion and Adjusted diluted EPS rose 9.5% to $0.91.
Management reaffirmed its 2025 outlook for mid-single-digit constant currency net sales growth and high-single-digit Adjusted diluted EPS growth, with foreign currency expected to be about a one-half percentage point headwind. Q2 operating cash flow was $431 milliond and free cash flow was $325 million.
02—Key points
Key Highlights
- Q2 2025 net sales increased 6.1% to $4.16 billion; constant currency growth was 7.2%, including 4.0 percentage points from the GHOST acquisition in volume/mix.
- GAAP diluted EPS was $0.40 (up 5.3%); Adjusted diluted EPS rose 11.1% to $0.49, driven by Adjusted operating income growth.
- U.S. Refreshment Beverages net sales grew 10.5% to $2.7 billion, with Adjusted operating margin of 29.4%.
- U.S. Coffee net sales were roughly flat (down 0.2%) as 3.6% net price realization offset a 3.8% volume/mix decline; Adjusted operating margin was 31.5%.
- International constant currency net sales increased 5.7%, led by mineral water in Mexico and single serve coffee in Canada, though reported net sales fell 1.8%.
- Management reaffirmed 2025 guidance for mid-single-digit constant currency net sales growth and high-single-digit Adjusted diluted EPS growth, noting the back half will present new challenges.
- Q2 operating cash flow was $431 million and free cash flow was $325 million; the management leverage ratio at June 30, 2025 was 3.3.
03—Questions
Frequently Asked Questions
How did Keurig Dr Pepper perform in the second quarter of 2025?
Net sales rose 6.1% to $4.16 billion, or 7.2% on a constant currency basis. GAAP net income increased 6.2% to $547 million, and Adjusted net income rose 10.5% to $673 million.
What drove growth in the quarter?
Growth was driven by volume/mix of 5.0% and net price realization of 2.2% on a constant currency basis. The GHOST acquisition contributed 4.0 percentage points to volume/mix growth, and U.S. Refreshment Beverages was the strongest segment.
Did KDP change its 2025 outlook?
No. KDP reaffirmed its fiscal 2025 guidance for constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range. Foreign currency is forecast to be about a one-half percentage point headwind to full-year growth.
What is the status of the U.S. Coffee business?
U.S. Coffee net sales were approximately flat, down 0.2%, as K-Cup pricing actions offset pod and brewer shipment declines. Management cited sequential progress in the segment, and Adjusted operating income rose 2.0%.
How is the balance sheet and cash generation?
Operating cash flow for Q2 was $431 million and free cash flow was $325 million. The management leverage ratio was 3.3 as of June 30, 2025, based on total principal debt of $16.04 billion less cash.
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