01—Abstract
Summary
Summary of the 8-K filed October 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Keurig Dr Pepper Inc. (Nasdaq: KDP) furnished an 8-K on October 27, 2025 announcing its third-quarter 2025 results via Exhibit 99.1, a press release titled "Keurig Dr Pepper Reports Q3 2025 Results and Raises Full Year Net Sales Outlook and Reaffirms EPS Guidance for 2025." Third-quarter net sales rose 10.7% to $4.31 billiona (constant currency up 10.6%), with volume/mix growth of 6.4% and net price realization of 4.2%.
GAAP diluted EPS was $0.49b, up 8.9%, while Adjusted diluted EPS was $0.54, up 5.9%. Adjusted operating income rose 3.8% to $1,091 million, or 25.3% of net sales. Operating cash flow was $639 million and free cash flow was $528 million for the quarter.
By segment, U.S. Refreshment Beverages net sales grew 14.4% to $2.7 billionc, helped by the GHOST acquisition, which contributed 7.2 percentage points to volume/mix growth. U.S. Coffee net sales increased 1.5% to $991 million, with a volume/mix decline of 4.0% offset by favorable net price realization of 5.5%. International net sales increased 10.5% to $580 million, and its Adjusted operating income fell 4.3% to $155 million.
For 2025, the company now expects constant currency net sales growth in a high-single-digit range, up from a mid-single-digit outlook previously. Its Adjusted diluted EPS growth outlook in a high-single-digit range is unchanged. The filing also discusses the pending acquisition of JDE Peet's and the subsequent separation into two pure-play companies, with related acquisition, integration and financing costs and bridge loan financing noted in the reconciliations.
02—Key points
Key Highlights
- Q3 2025 net sales rose 10.7% to $4.31 billion; constant currency growth was 10.6%, driven by volume/mix growth of 6.4% and net price realization of 4.2%.
- GAAP diluted EPS was $0.49 (up 8.9%); Adjusted diluted EPS was $0.54 (up 5.9%).
- Full-year 2025 constant currency net sales growth outlook was raised to high-single-digit from mid-single-digit; Adjusted EPS growth outlook of high-single-digit was reaffirmed.
- U.S. Refreshment Beverages net sales rose 14.4% to $2.7 billion, with market share gains in carbonated soft drinks, energy and sports hydration; GHOST contributed 7.2 percentage points to volume/mix.
- U.S. Coffee net sales rose 1.5% to $991 million; volume/mix declined 4.0%, offset by 5.5% net price realization from K-Cup pricing actions.
- Q3 operating cash flow was $639 million and free cash flow was $528 million; first nine months free cash flow was $955 million.
- Management leverage ratio was 3.2 as of September 30, 2025, with total principal debt of $15,955 million and cash of $516 million.
03—Questions
Frequently Asked Questions
How did Keurig Dr Pepper perform in the third quarter of 2025?
Net sales increased 10.7% to $4.31 billion, GAAP operating income rose 10.3% to $995 million, and GAAP net income rose 7.5% to $662 million. Adjusted operating income increased 3.8% to $1,091 million, and Adjusted diluted EPS increased 5.9% to $0.54.
Did the company change its 2025 guidance?
Yes, in part. Constant currency net sales growth is now expected in a high-single-digit range, revised up from a mid-single-digit outlook. The Adjusted diluted EPS growth outlook in a high-single-digit range was unchanged. Foreign currency translation is forecast to be about a one-half percentage point headwind to full-year top- and bottom-line growth.
Which segment drove growth in the quarter?
U.S. Refreshment Beverages led, with net sales up 14.4% to $2.7 billion on volume/mix growth of 11.2% and net price realization of 3.2%. The GHOST acquisition contributed 7.2 percentage points to that volume/mix growth. U.S. Coffee grew 1.5% to $991 million, while International grew 10.5% to $580 million but its Adjusted operating income declined 4.3%.
What does the filing say about the JDE Peet's acquisition and separation?
The press release says the company is preparing to first acquire and integrate JDE Peet's and subsequently separate into two advantaged pure-play companies. Related acquisition, integration and financing costs were excluded from Adjusted results, including a $5 million amortization of bridge loan deferred financing costs in Q3 and an unrealized mark-to-market gain of $28 million on €10 billion of FX forward contracts.
How strong was cash generation?
Third-quarter operating cash flow was $639 million and free cash flow was $528 million. For the first nine months, operating cash flow was $1,279 million and free cash flow was $955 million, compared with $973 million a year earlier.
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