By Elias Schisgall

Boston Beer swung to a loss in the first quarter and cut its outlook, driven by both lower volumes and a non-recurring litigation expense.

The beverage company on Thursday reported a loss of $145.3 million, or $13.88 a share, compared with a profit of $24.4 million, or $2.16 a share, a year earlier.

The loss included non-recurring litigation expenses of $15.52 a share, the company said. A federal court filed a jury verdict earlier this month in favor of Ardagh Metal Packaging on claims that Boston Beer failed to fulfill the terms of a beer-can purchase contract, which the company said it plans to contest.

Stripping out certain one-time items, the company reported adjusted earnings of $1.64 a share. Analysts polled by FactSet were expecting $1.96 a share.

Net revenue fell to $433.9 million from $453.9 million a year prior. Analysts were expecting $436.1 million.

The company reported shipment volume of about 1.6 million barrels, a 6.9% year-over-year decrease.

Depletions, a measure of sales by distributors to retailers which is seen as an indicator of demand, fell 4% due to decreases in the Twisted Tea, Truly, Samuel Adams, and Hard Mountain Dew brands.

Those were partially offset by increases in the Sun Cruiser, Angry Orchard, and Dogfish Head brands, the company said.

"We were encouraged by early signs of improvement in the total beer category in the first quarter," Chief Executive Jim Koch said. "While our depletions improved and it remains early in the year, our portfolio has not yet fully matched the improvement in category trends."

The company said it estimates that depletions have fallen 4% year-over-year for the period from the beginning of the year to April 24.

Boston Beer also cut its full-year guidance to reflect the litigation charges, as well as lower expected volumes and a more challenging cost environment.

The company now expects a reported loss of $5.02 to $7.02 a share, with adjusted earnings between $8.50 and $10.50 a share. It had previously forecast earnings of $8.50 to $11.00 a share.

The company also said it expects depletions and shipments to fall by low- to mid-single digits. It previously projected a range of flat to down mid-single digits.

Shares fell 4.7% to $226.00 in after-hours trading Thursday. The stock closed roughly flat at $237.04, and is up 21% year-to-date.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

April 30, 2026 17:27 ET (21:27 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.