In the fourth quarter, Keurig Dr Pepper returned to profits and advanced adjusted net income as sales gained, while U.S. Coffee sales results were mixed.
Net income was $353 million, or 26 cents per diluted share, versus a net loss of $144 million, or 11 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, net income was $813 million, or 60 cents per diluted share, versus $790 million, or 58 cents per diluted share, in the year-earlier period, the company reported.
An analyst consensus estimate posted by Zacks Investment Research called for adjusted diluted earnings per share of 59 cents and revenue of $4.36 billion.
Net sales were $4.5 billion as compared to $4.07 billion in the year-before quarter.
Income from operations was $881 million versus $63 million in the year-previous period, while adjusted income from operations was $1.19 billion versus $1.13 billion.
In the U.S. Coffee segment, fourth-quarter net sales increased 3.9% to $1.2 billion. A volume/mix decline of 4.1% partially offset a favorable net price realization of 8%. Operating income slipped 16.9% to $290 million, including an unfavorable year-over-year impact of items affecting comparability, while adjusted operating income declined 8.8% to $364 million.
For the full year, net income was $2.08 billion, or $1.53 per diluted share, versus $1.44 billion, or $1.05 per diluted share, in the year prior. Adjusted net income was $2.79 billion, or $2.05 per diluted share, versus $2.63 billion, or $1.92 per diluted share, in the year earlier, Keurig Dr Pepper maintained.
Net sales were $16.6 billion as compared to $15.35 billion in the year before. Income from operations was $3.58 billion versus $2.59 billion in the year previous, while adjusted income from operations was $4.16 billion versus $3.97 billion.
Full year U.S. Coffee sales gained 0.6% to $4 billion. A volume/mix decline of 4.2% partially offset a favorable net price realization of 4.8%, with growth driven by higher sales for K-Cup pods, partially offset by a decrease in brewer sales.
Operating income decreased 10.8% to $962 million, including an unfavorable year-over-year impact of items affecting comparability, while adjusted operating income decreased 4.4% to $1.23 billion.
In announcing the financial results, Keurig Dr Pepper 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.”
As he leaves the chairman’s role, Gamgort also will step down from the Keurig Dr Pepper board. Patsley, his successor as board chair, currently serves as KDP’s lead independent director and has been a board member since 2018. She previously served on the board of the predecessor Dr Pepper Snapple Group.
Gamgort commented, “With KDP delivering strong performance in 2025 and establishing a compelling outlook for a transformational 2026, the time is right for me to step back from the board. The strategic vision for KDP’s future is clear, and planning for the integration of JDE Peet’s and subsequent separation into two new companies is well underway under the leadership of Tim and our capable team. Ten years after my initial investment in the Keurig Green Mountain take-private transaction, I am committed to participating in KDP’s next leg of value creation as a long-term investor.”
