Keurig Dr Pepper Q2 2025 Results Show Solid Growth

Keurig Dr Pepper has reported strong second-quarter results for 2025, driven by growth in U.S. Refreshment Beverages and improving trends in U.S. Coffee and International markets. The company reaffirmed its full-year outlook, citing solid momentum and disciplined cost management.

Q2 Performance

Net sales for the second quarter reached $4.16 billion, up 6.1% from the prior year. On a constant currency basis, net sales rose 7.2%, supported by a 5.0% increase in volume/mix and a 2.2% improvement in pricing. Adjusted diluted earnings per share grew 11.1% to $0.49.

GAAP operating income rose 4.3% to $898 million. Adjusted operating income increased 7.0% to $1.03 billion, equal to 24.7% of net sales. GAAP net income was $547 million, or $0.40 per diluted share. Adjusted net income totaled $673 million.

The company delivered operating cash flow of $431 million and free cash flow of $325 million during the quarter.

Segment Results

U.S. Refreshment Beverages led the quarter with net sales of $2.7 billion, up 10.5%. Volume/mix rose 9.5%, with growth supported by market share gains and the impact of the GHOST acquisition. Adjusted operating income increased to $781 million.

U.S. Coffee net sales were $948 million, down 0.2% year-over-year. A 3.6% increase in pricing was offset by a 3.8% decline in volume. Adjusted operating income rose 2.0% to $299 million.

International sales declined 1.8% to $555 million. On a constant currency basis, the segment grew 5.7%, led by category gains in Mexico and Canada. Adjusted operating income rose 2.6% to $145 million.

First-Half Overview

For the first six months of 2025, net sales reached $7.80 billion, up 5.5% reported and 6.8% constant currency. Adjusted diluted EPS grew 9.5% to $0.91. Adjusted operating income was $1.88 billion, with a 24.0% margin.

U.S. Refreshment Beverages increased 10.7% to nearly $5.0 billion. U.S. Coffee declined 1.9% to $1.83 billion, while International fell 3.8% to $990 million, or rose 5.5% constant currency.

Balance Sheet and Cash Flow

Keurig Dr Pepper ended the quarter with $509 million in cash and cash equivalents. Total assets reached $54.37 billion. Adjusted EBITDA for the trailing twelve months totaled $4.70 billion. The company’s management leverage ratio was 3.3x.

Free cash flow for the first half of 2025 was $427 million, compared to $470 million in the prior-year period.

Full-Year 2025 Guidance

The company reaffirmed its fiscal 2025 guidance for constant currency net sales growth in the mid-single-digit range and adjusted diluted EPS growth in the high-single-digit range. Foreign exchange is expected to be a modest headwind.