Overview

• Craft brewer's Q4 revenue beat analyst expectations despite a 4.1% decline

• Company's Q4 gross margin improved to 43.5% from 39.9% year over year

• Company reported Q4 net loss of $22.5 mln

Outlook

• Boston Beer projects 2026 EPS between $8.50 and $11.00

• Company expects 2026 gross margin of 48% to 50% including tariffs

• Boston Beer anticipates 2026 tariff costs of $20 to $30 mln

Result Drivers

• BRAND PERFORMANCE - Decreases in Twisted Tea, Truly Hard Seltzer, and Samuel Adams brands drove shipment declines, partially offset by growth in Sun Cruiser, Angry Orchard, and Dogfish Head

• GROSS MARGIN IMPROVEMENT - Improved brewery efficiencies, procurement savings, and price increases boosted gross margin, despite tariff and shortfall fee impacts

• INCREASED MARKETING SPEND - Higher advertising, promotional, and selling expenses due to increased salaries, brand media, and local marketing investments

Company press release: ID:nGNX3MBy0Z

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$385.70 mln	$381.31 mln (9 Analysts)
Q4 EPS		-$2.12
Q4 Net Income		-$22.50 mln
Q4 Gross Margin		43.5%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the brewers peer group is "buy"

• Wall Street's median 12-month price target for Boston Beer Company Inc is $233.50, about 4.2% above its February 23 closing price of $224.16

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

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