KDP · 8-K · 20260806PR000048

Operating Income and Margins

Keurig Dr Pepper Inc. · 2026-08-06 · Importance 78 · Surprise 74 · No source text

Second-quarter GAAP operating income decreased 30.1% to $628 million and GAAP operating margin fell to 8.6% from 21.6%. Adjusted operating income increased 42.9% to $1.48 billion, producing a 20.2% adjusted operating margin versus 24.7% in the prior year. Adjusted operating income benefited from sales growth, productivity savings, and the JDE Peet’s acquisition, but was reduced by inflation, higher SG&A and marketing expenses, and $318 million of JDE Peet’s acquisition, integration and financing costs. U.S. Refreshment Beverages adjusted operating income increased 11.9% to $874 million, while U.S. Coffee declined 24.7% to $225 million and KDP International was flat at $155 million.

Key facts

• Q2 Adjusted operating income: $1,478 million and totaled 20.2% of net sales; increased 42.9% source
• Q2 GAAP operating income: $628 million, decreased 30.1% year-over-year source
• Q2 reported consolidated income from operations by segment: U.S. Refreshment Beverages $857 million; U.S. Coffee $149 million; KDP International $152 million; JDE Peet's $(62) million; Unallocated corporate costs $(468) million; Total $628 million source
• Q2 Adjusted income from operations by segment: U.S. Refreshment Beverages $874 million; U.S. Coffee $225 million; KDP International $155 million; JDE Peet's $414 million; Unallocated corporate costs $(190) million; Total $1,478 million source
• Q2 U.S. Refreshment Beverages Adjusted operating income: $874 million and totaled 29.9% of net sales; increased 11.9% source
• Pro forma EBITDA for the last twelve months ended June 30, 2026: $4,859 source
• Pro forma Adjusted EBITDA for the last twelve months ended June 30, 2026: $6,611 source
• Third Quarter of 2025 Pro forma income from operations: $1,236 and operating margin: 17.9% source

Impact estimates