Coca-Cola Consolidated — Third Quarter and First Nine Months 2026 Earnings Summary

Financial Performance

• Third quarter 2026 net sales increased 5.4% to $1,989.5 million from $1,888.3 million in the prior year period.
• First nine months 2026 net sales increased 10.6% to $5,888.6 million from $5,323.8 million in the prior year period.
• Third quarter 2026 gross profit was $771.6 million, a 3.1% increase from $748.5 million in the prior year; gross margin decreased 80 basis points to 38.8% from 39.6%.
• First nine months 2026 gross profit increased 7.5% to $2,277.1 million from $2,118.1 million; gross margin decreased to 38.7% from 39.8%.
• Third quarter 2026 income from operations was $271.6 million, a 10.1% increase from $246.6 million; operating margin increased 60 basis points to 13.7% from 13.1%.
• First nine months 2026 income from operations increased 10.1% to $780.5 million from $708.5 million; operating margin remained flat at 13.3%.
• Third quarter 2026 net income was $175.9 million, a 23.6% increase from $142.3 million; adjusted net income decreased 2.2% to $175.3 million from $179.2 million.
• First nine months 2026 net income increased 3.0% to $446.2 million from $433.3 million; adjusted net income decreased 5.5% to $482.5 million from $510.6 million.
• Third quarter 2026 SD&A expenses decreased 0.4% to $499.9 million from $501.9 million; SD&A as a percentage of net sales decreased to 25.1% from 26.6%.
• First nine months 2026 SD&A expenses increased 6.2% to $1,496.6 million from $1,409.6 million.
• Cash flows from operations for the first nine months 2026 were $664.8 million, a decrease from $722.9 million in the prior year period.
• Capital expenditures for the first nine months 2026 were $219.3 million; full-year 2026 capital expenditures are expected to be approximately $300 million.
• Net interest expense for the first nine months 2026 was $91.4 million, an increase from $17.5 million in the prior year period.
• Long-term debt decreased from $2,686.0 million as of December 31, 2025, to $2,413.9 million as of October 2, 2026.

Guidance and Future Outlook

• Management expects full-year 2026 capital expenditures to be approximately $300 million.
• The company remains committed to investing for the long term, including the addition of a new glass bottle production line in Indianapolis.
• Management stated they remain focused on affordability and investing strategically with customers to drive balanced, durable growth.

Business Segments and Product Lines

• Third quarter 2026 volume increased 1.4% to 94.2 million cases; first nine months 2026 volume increased 7.1% to 278.8 million cases.
• Adjusted volume for the first nine months 2026 increased 5.1% to 273.4 million cases.
• Sparkling category volume increased 1.5% in the third quarter and 6.7% in the first nine months; adjusted first nine months volume increased 4.6%.
• Still category volume increased 1.2% in the third quarter and 8.5% in the first nine months; adjusted first nine months volume increased 6.6%.
• Third quarter 2026 Sparkling net sales increased 4.4% to $1,130.9 million; Still net sales increased 6.8% to $687.2 million.
• First nine months 2026 Sparkling net sales increased 9.9% to $3,405.0 million; Still net sales increased 11.9% to $1,990.2 million.
• Sparkling volume growth was led by zero-sugar and flavor offerings.
• Still category volume growth was driven by Energy and Protein products.
• Sparkling sales growth was driven by multi-pack, take-home aluminum can packages in large store, club, and value channels.
• Still product sales were strong in convenience and value store channels.

Market and Competitive Landscape

• The shift in timing of the Fourth of July holiday reduced total volume by approximately 1.0% in the third quarter 2026 compared to the prior year.
• The first nine months 2026 included six additional selling days compared to the first nine months 2025, contributing approximately $30.0 million to income from operations and $22.6 million to net income.
• The fourth quarter 2026 will include six fewer days compared to the fourth quarter 2025.

Risks and Challenges

• Gross margin compression was caused by higher commodity and supply chain costs, particularly aluminum and fuel, which outpaced price increases.
• Sales mix shifts negatively impacted gross margin in the third quarter.
• Higher labor costs related to annual wage adjustments and increased employee benefit costs contributed to SD&A expense increases.
• Net income for the first nine months 2026 was negatively impacted by an increase in net interest expense.
• Net income for the third quarter 2025 was adversely impacted by non-cash fair value adjustments to acquisition-related contingent consideration, a factor not present in the 2026 quarter.

Management Commentary and Tone

• J. Frank Harrison, III, Chairman and CEO, stated results reflect business strength and dedication to serving customers, with a healthy balance of volume and price.
• Harrison noted the company reduced debt by $450 million through October 2026 and remains committed to strengthening the balance sheet.
• Dave Katz, President and COO, expressed pleasure with business momentum and commercial strategies driving strong net sales growth.
• Katz highlighted that disciplined expense management and cycling of prior-year teammate investments allowed for operating margin expansion despite cost pressures.
• Management emphasized a continued focus on affordability and strategic investment with customers.

Other Key Points

• The company reduced debt by $450 million through October 2026.
• Net income per share for the third quarter 2026 was $2.64 (basic) and $2.64 (diluted), compared to $1.64 in the prior year.
• Net income per share for the first nine months 2026 was $6.70 (basic) and $6.69 (diluted), compared to $4.99 in the prior year.
• The company is the largest Coca-Cola bottler in the United States, distributing to approximately 60 million consumers across 14 states and the District of Columbia.
• The first nine months 2026 included six extra days compared to the first nine months 2025, which were excluded from adjusted volume and financial results for comparison purposes.