Anheuser-Busch Inbev SA Sponsored ADR (Belgium)
BUD · NYSE
Next quarter
Expected to report Oct 29, 2026 — estimated from last year’s reporting date.
Consensus is $1.15 EPS for Sep 2026 across 5 estimates, ranging $1.13 to $1.19.
BUD Jun 2026
- 11.01%
- +0.39%
- $1.09
- $1.21
- —
- —
Highlights
- EPS beat: Reported quarterly EPS was $1.21, ahead of the $1.09 consensus by 11.01%; the interim filing reported first-half basic EPS of $3.20 versus $1.92 a year earlier.
- Underlying earnings: First-half underlying EPS rose 21.8% to $2.18 from $1.79, while underlying profit attributable to AB InBev shareholders increased to $4.314 billion from $3.556 billion.
- Operating growth: First-half revenue increased 11.5% to $31.927 billion and normalized EBITDA rose 12.0% to $11.375 billion; excluding currency, hyperinflation and portfolio changes, EBITDA grew 5.6%.
- Limited volume contribution: Total volumes increased only 0.3% to 280.4 million hectoliters, but revenue per hectoliter rose 4.3% on an organic basis, supported by pricing, premiumization and Beyond Beer.
- Regional mix: Middle Americas and South America led operating profit growth, up 21.3% to $4.076 billion and 27.0% to $1.555 billion, respectively; Asia Pacific declined 6.5% to $691 million.
- North America execution: North American volume fell 1.6%, with U.S. sales to retailers down 0.9% and sales to wholesalers down 1.8%, although management cited share gains led by Michelob Ultra, Busch Light and Cutwater.
- Exceptional finance gain: Net finance expense fell to $74 million from $1.678 billion because of a $2.033 billion mark-to-market gain on equity derivatives, versus a $339 million gain in the prior-year period.
- Cash generation and leverage: Operating cash flow rose to $5.241 billion from $2.704 billion and adjusted free cash flow to $3.881 billion from $1.355 billion, but net debt increased to $64.2 billion from $60.9 billion after acquisitions, buybacks, dividends and the metal-plants transaction.
- Digital and portfolio expansion: BEES GMV reached $29.6 billion versus $23.8 billion, while the company acquired 85% of BeatBox for $493 million and reacquired the remaining 49.9% minority stake in its U.S. metal-container plants for $2.9 billion.
Analysis
AB InBev delivered a quarterly EPS beat, with reported EPS of $1.21 versus the $1.09 consensus, an 11.01% upside. The supplied filing is for the six months ended June 30 rather than the standalone quarter and does not provide a prior-quarter comparison. On the first-half basis available, the print was stronger than a modest volume performance suggests: revenue rose 11.5% year over year to $31.927 billion, normalized EBITDA increased 12.0% to $11.375 billion and underlying EPS advanced 21.8% to $2.18 from $1.79.
The central operating story was pricing and mix. Volumes grew just 0.3% to 280.4 million hectoliters, while organic revenue increased 5.7% and revenue per hectoliter rose 4.3%, reflecting revenue management, premiumization and Beyond Beer. Middle Americas and South America were the main profit engines, while China pressured Asia Pacific. Reported net income also benefited materially from a $2.033 billion mark-to-market finance gain, making the $3.20 first-half basic EPS less representative of underlying trading than the $2.18 underlying measure. Cash conversion improved sharply, with adjusted free cash flow rising to $3.881 billion, although net debt increased $3.3 billion to $64.2 billion after shareholder distributions and strategic investments.
Revenue and margins
AB InBev produced double-digit reported growth despite almost flat volumes. First-half revenue rose $3.296 billion, or 11.5%, to $31.927 billion, while gross profit increased 13.7% to $18.225 billion. Normalized EBITDA grew 12.0% to $11.375 billion. Excluding currency translation, Argentine hyperinflation and acquisitions or disposals, revenue grew 5.7%, or 4.3% per hectoliter, and EBITDA increased 5.6%.
- Pricing and mix: Organic revenue growth was driven by revenue management, premiumization and Beyond Beer rather than shipment growth; total volumes rose 0.3% to 280.4 million hectoliters.
- Cost pressure: On an organic basis, cost of sales increased 3.6%, or 1.7% per hectoliter, while SG&A rose 6.5% as AB InBev invested behind megabrands, digital platforms and major sporting events.
- Currency: Reported revenue included a positive $1.783 billion currency translation impact, while profit from operations benefited by $597 million from currency translation.
Regional performance
Growth was concentrated in Middle Americas and South America, with both regions combining volume momentum and favorable pricing or mix. Asia Pacific remained the main weak spot, while North America delivered earnings growth despite declining shipments.
- Middle Americas: Volumes increased 2.8% to 76.0 million hectoliters, revenue rose 18.1% to $9.595 billion and profit from operations grew 21.3% to $4.076 billion. Mexico benefited from above-core brands and no-alcohol beer, while Colombia, Peru and Ecuador posted strong volume growth.
- South America: Volumes rose 0.5%, revenue increased 16.2% to $6.402 billion and operating profit grew 27.0% to $1.555 billion. Brazil beer volumes increased 2.9%, with premium and super-premium beer up in the low twenties.
- North America: Volumes declined 1.6% and revenue grew 3.0% to $7.424 billion, but operating profit rose 8.5% to $2.285 billion. U.S. STRs fell 0.9% and STWs 1.8%, although management cited share gains across beer, spirits and no-alcohol beer.
- EMEA and Asia Pacific: EMEA revenue grew 11.2% and operating profit 7.2% to $972 million. Asia Pacific revenue was broadly flat at $3.122 billion and operating profit fell 6.5% to $691 million, with China volumes down 6.0%.
Reported versus underlying earnings
The earnings comparison was heavily influenced by mark-to-market accounting. Profit attributable to AB InBev equity holders increased 65.1% to $6.314 billion, and basic first-half EPS rose to $3.20 from $1.92. However, the $2.033 billion exceptional finance gain, largely linked to equity derivatives, was excluded from underlying earnings.
- Underlying result: Underlying profit increased 21.3% to $4.314 billion and underlying EPS rose to $2.18 from $1.79.
- Finance line: Net finance expense was $74 million versus $1.678 billion a year earlier, but finance expense before exceptional items increased to $2.107 billion from $2.046 billion.
- Tax: The effective tax rate declined to 19.8% from 24.1%, with both periods benefiting from non-taxable derivative gains.
Cash flow and leverage
Cash generation improved substantially, but capital allocation and corporate transactions absorbed the benefit. Operating cash flow nearly doubled to $5.241 billion from $2.704 billion, and adjusted free cash flow rose to $3.881 billion from $1.355 billion. Net debt nevertheless increased to $64.2 billion at June 30 from $60.9 billion at year-end.
- Capital spending: Net capex was $1.360 billion, broadly unchanged from $1.350 billion, with 60% directed to logistics and commercial investments.
- Shareholder returns: The company paid $2.596 billion of dividends and spent $1.301 billion on share buybacks during the first half.
- Strategic spending: AB InBev paid $2.9 billion to reacquire the 49.9% minority stake in its U.S. metal-container plants and $493 million for an 85% stake in BeatBox, including $390 million of net cash outflow.
- Liquidity: Total liquidity stood at $18.1 billion, comprising $8.0 billion of cash and short-term investments and $10.1 billion of available committed long-term credit facilities.
Digital and new occasions
The company continued to use digital distribution and adjacent alcohol categories to extend its addressable market. BEES was live in 30 markets, with 72% of revenue captured through B2B digital platforms. Its marketplace and direct-to-consumer businesses both expanded, while BeatBox added a U.S. ready-to-drink platform.
- BEES: Gross merchandise value increased to $29.6 billion from $23.8 billion, and third-party marketplace GMV rose to $2.3 billion from $1.4 billion.
- Direct-to-consumer: Zé Delivery, TaDa Delivery and PerfectDraft served 13 million active consumers and generated $304 million of revenue, up from $251 million.
- BeatBox: The acquisition added $342 million of provisional goodwill and included a put option on the remaining 15% stake valued at $202 million at June 30.
