Keurig Dr Pepper Inc. (NASDAQ: KDP) reported fourth‑quarter 2025 results that exceeded expectations, with net sales of $4.50 billion—up 10.5% year‑over‑year—and an adjusted earnings per share of $0.60, beating the consensus estimate of $0.59. GAAP net income swung to $353 million, reversing the $144 million loss recorded in the same quarter a year earlier. The earnings beat was driven by robust demand in the U.S. Refreshment Beverages segment, the volume and mix gains from the recently completed GHOST acquisition, and disciplined cost management that kept inflationary headwinds from eroding margins.
Full‑year 2025 figures also outpaced analysts, with net sales of $16.6 billion, an 8.2% increase, and adjusted EPS of $2.05, up 7.3% from the prior year. For context, Q4 2024 adjusted EPS was $0.58 and the full‑year 2024 adjusted EPS was $1.92. The year‑over‑year growth was largely powered by the GHOST acquisition’s contribution to volume and mix, along with price realization across the core beverage portfolio and continued innovation in product offerings.
Management reiterated its 2026 outlook, projecting net sales of $25.9 billion to $26.4 billion and adjusted EPS of $2.13 to $2.17—both figures well above analyst expectations. The guidance reflects confidence in the upcoming JDE Peet’s acquisition, which is expected to be about 10% EPS accretive in the first full year, and the sustained strength of KDP’s beverage portfolio.
The $18.2 billion acquisition of Dutch coffee group JDE Peet’s is on track to close in early April 2026. The deal positions KDP as a major global coffee player and sets the stage for a future split into two focused, pure‑play companies—Beverage Co. and Global Coffee Co.—a strategic move that could unlock significant shareholder value.
Pre‑market trading showed a modest lift, with investors reacting positively to the earnings beat, the strong revenue guidance, and the strategic momentum from the JDE Peet’s deal. The market viewed the EPS and revenue beats as evidence of effective cost control and pricing power, while the high 2026 guidance underscored management’s confidence in continued growth.
CEO Tim Cofer said, "2025 was another strong year for KDP. We delivered on our guidance, navigated the dynamic operating environment with agility, and executed well in the marketplace with winning innovation and robust commercial activation of our brands. In 2026, we intend to build upon our momentum with the acquisition and integration of JDE Peet's and progress towards the subsequent separation into two advantaged pure play companies." CFO Anthony DiSilvestro added, "Today's update demonstrates our commitment to ensuring strong and resilient capital structures at each stage of this transaction by introducing an additional $1.5 billion of cost‑efficient equity capital into the financing and bringing on board a high‑quality mix of shareholders who recognise the value creation opportunity ahead. Our comprehensive financing solution, combined with strong cash generation, will drive rapid deleveraging, reinforce KDP's balance sheet, and help to establish Beverage Co. and Global Coffee Co. as successful, investment‑grade companies."
Headwinds remain in the form of inflationary pressures and higher SG&A costs, which have partially offset the productivity savings achieved. The U.S. Coffee segment saw a decline in pod shipments and brewer sales, but price increases helped mitigate volume losses. Despite these challenges, the company’s mix shift toward higher‑margin products and the strategic acquisitions have helped maintain overall profitability.
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