Boston Beer Cuts 2026 EPS Guidance to Loss of $7.02–$5.02 After $216M Lawsuit Charge
Boston Beer lowered its 2026 GAAP EPS guidance to a loss of $7.02–$5.02 per share from prior growth expectations of $8.50–$11.00 after recognizing $216m in litigation charges. First-quarter net revenue dropped 4.4% to $433.9m and shipment volumes slid 6.9% to 1.6m barrels.
1. Litigation Verdict and Charge
Boston Beer faced a jury verdict awarding Ardagh Metal Packaging $175.5m in damages plus pre-judgment interest up to $36.5m, and incurred $4m in legal fees, resulting in a total of $216m in Q1 litigation expense.
2. Revised Full-Year Guidance
The company narrowed its 2026 full-year GAAP EPS guidance to a loss of $7.02–$5.02 per share, down from prior expectations of $8.50–$11.00, to account for the litigation charge.
3. Q1 Revenue and Loss
For the quarter ended March 28, net revenue declined 4.4% to $433.9m and Boston Beer recorded a GAAP diluted loss of $13.88 per share, which included a $15.52 per share litigation expense.
4. Volume Trends and Outlook
Shipment volumes fell 6.9% to 1.6m barrels due to tough inventory comparisons and lower distributor stocks, leading the company to forecast a down low- to mid-single-digit volume decline for the year.