Boston Beer Cuts 2026 EPS Guidance to Loss After $216M Litigation Charge
Boston Beer lowered 2026 GAAP EPS guidance to a loss of $7.02–$5.02 after incurring $216 million in pre-tax litigation charges from a $175.5 million verdict and $36.5 million interest. First-quarter revenue fell 4.4% to $433.9 million while shipments dropped 6.9% to 1.6 million barrels.
1. Legal Verdict and Charges
An Illinois jury awarded $175.5 million in damages to Ardagh Metal Packaging USA Corp for alleged minimum can purchase shortfalls from 2021–2025, plus up to $36.5 million in pre-judgment interest. Boston Beer recorded a total pre-tax litigation expense of $216 million and $4 million in legal fees, equating to $15.52 per diluted share.
2. First-Quarter Financial Results
In the quarter ended March 28, Boston Beer reported a GAAP diluted loss of $13.88 per share after litigation charges, and net revenue declined 4.4% to $433.9 million. Shipment volumes fell 6.9% year-over-year to 1.6 million barrels, driven by lower distributor inventory rebuilds for recent product innovations.
3. Revised 2026 Guidance and Outlook
The company revised its full-year 2026 GAAP EPS guidance to a loss ranging from $7.02 to $5.02 per share, down from a prior forecast of $8.50 to $11.00. Volume guidance was also lowered to a low- to mid-single-digit decline in depletions and shipments, with management anticipating improved performance later in the year while pursuing appellate remedies.