Boston Beer Co. Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did SAM Beat Earnings? Q4 2025 Results
Boston Beer delivered a mixed fourth quarter for fiscal 2025, posting a bottom-line miss against a modest revenue beat as ongoing volume declines continued to weigh on the craft brewer's results. The company reported a net loss of $2.12 per diluted share, falling short of the consensus estimate of $1.98 by 7.07%, while revenue of $385.68 million edged fractionally ahead of the $384.44 million consensus despite sliding 4.1% year-over-year. The primary culprit was a 6% drop in depletions and a 7.5% decline in shipments, driven by weakness in Twisted Tea, Truly Hard Seltzer, and Samuel Adams, with $13.90 million in shortfall fees further dragging on profitability. On a brighter note, gross margin expanded 360 basis points to 43.5%, reflecting improved brewery efficiencies and pricing gains. Looking ahead, management guided full-year 2026 EPS to a range of $8.50 to $11.00, but flagged $20 to $30 million in projected tariff headwinds, while an expansion of its Sinless Vodka Cocktails into 34 markets signals the company's push to find new growth vectors.
- Gross margin expanded 360 bps in Q4 to 43.5% driven by improved brewery efficiencies, procurement savings, price increases, and product mix
- Depletions decreased 6% and shipments decreased 7.5% in Q4
- Growth in Sun Cruiser, Angry Orchard, and Dogfish Head brands partially offset declines in Twisted Tea, Truly Hard Seltzer, and Samuel Adams
- Advertising, promotional and selling expenses increased 10.5% for the full year as the company invested $61 million more in brand media and local marketing
- Tariffs negatively impacted Q4 by $3.6 million and full year by $10.1 million
“We were pleased to deliver on our financial commitments in 2025 while maintaining market share in a challenging operating environment. Looking ahead, we are highly focused on operational excellence, including investing in our portfolio of iconic brands, developing a strong innovation pipeline and continuing to execute on our multi-year productivity initiatives. We believe this disciplined focus positions us to improve performance over time and create long-term value for shareholders.”
Boston Beer CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Boston Beer projects depletions and shipments flat to down mid-single digits, price increases of 1% to 2%, gross margin of 48% to 50% including tariffs, tariff costs of $20 to $30 million (based on tariffs in place prior to the February 20, 2026 Supreme Court ruling), advertising/promotional/selling expense increase of $20 to $40 million year-over-year, effective tax rate of 29% to 30%, EPS of $8.50 to $11.00 including tariffs, and capital spending of $70 to $90 million. First quarter and first half shipments are expected to decline toward the lower end of full year guidance due to higher prior year comparisons. Year-over-year gross margin improvement is expected to be most meaningful in Q4 as shortfall fees are expected to decline. Year-to-date depletions through the 8-week period ended February 21, 2026 decreased approximately 3%.
SAM YoY Financials
Figures from SEC filings and company reports. Not investment advice.