Executive Summary

Solid top line and margin execution: Net sales rose to $1.89B (+6.9% YoY) with gross margin +10 bps to 39.6%, driven by annual pricing and stronger Still category; operating margin improved 20 bps to 13.1% .
EPS dynamics: GAAP EPS $1.64 (+24% YoY) and adjusted EPS $2.06 (+10% YoY); non‑cash fair value adjustments to acquisition-related contingent consideration continued to materially affect GAAP net income .
Category and mix: Sparkling net sales +4.7% and Still +9.9% YoY; volume +3.3% with broad-based brand strength (Monster, Powerade, smartwater, Core Power, Dasani, Topo Chico) and ongoing softness in Coca‑Cola Original Taste .
Cost and capital: SD&A +6.6% YoY (labor/wage investments), but leveraged slightly (−10 bps to 26.6% of sales); returned ~$133M in Q3 via ~$111M buybacks and ~$22M dividends; FY25 capex outlook maintained at ~$300M .
Estimates: S&P Global consensus for Q3 2025 EPS and revenue was unavailable; comparisons to sell‑side estimates could not be made. Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Pricing and category mix supported profitable growth: Net sales +6.9% YoY; gross profit +7.2% with gross margin +10 bps to 39.6% as pricing offset higher commodity costs (including aluminum tariff volatility) .
Still momentum and Sparkling resilience: Still net sales +9.9% YoY; Sparkling +4.7% YoY, with zero-sugar and flavors leading; Q3 volume +3.3% on broad brand strength (Monster, Powerade, smartwater, Core Power, Dasani, Topo Chico) .
Operating discipline and capital returns: Operating margin +20 bps to 13.1%; Q3 capital returns >$133M (repurchases ~$111M; dividends ~$22M), >$211M YTD in 2025 .
Management tone: “We are beginning to see early returns on the teammate investment… momentum in sales execution has led to solid market share growth” – CEO J. Frank Harrison III .
Supply chain and commercial execution: “Investments in our supply chain and selling capabilities have allowed us to meet… increasing demands… while delivering profitable growth” – COO Dave Katz .

What Went Wrong

Labor inflation lifted SD&A: SD&A +6.6% YoY, primarily from wage adjustments and base wage increases for front‑line teammates, though SD&A % of sales improved 10 bps to 26.6% .
Category-specific softness: Continued moderating headwinds in Coca‑Cola Original Taste despite broader Sparkling strength .
Non‑cash P&L noise: Other expense included fair value adjustments to contingent consideration; Q3 “Other expense, net” was $49.7M, materially affecting GAAP earnings .
Year-to-date pressure: 9M 2025 volume −1.2% (two fewer selling days), and 9M GAAP net income −4.6% YoY despite strong Q3 .

Financial Results

Consolidated P&L and Margins (chronological: Q3’24 → Q2’25 → Q3’25)

Metric	Q3 2024	Q2 2025	Q3 2025
Net Sales ($USD Millions)	$1,765.7	$1,855.5	$1,888.3
Gross Profit ($USD Millions)	$698.0	$742.5	$748.5
SD&A ($USD Millions)	$471.0	$470.4	$501.9
Income from Operations ($USD Millions)	$227.1	$272.1	$246.6
Net Income ($USD Millions)	$115.6	$187.4	$142.3
GAAP Diluted EPS ($)	$1.32	$2.15	$1.64
Adjusted EPS ($)	$1.88	$2.24	$2.06
Gross Margin (%)	39.5%	40.0%	39.6%
Operating Margin (%)	12.9%	14.7%	13.1%
SD&A as % of Sales	26.7%	25.4%	26.6%

Notes: Adjusted EPS reconciliations reflect significant non‑cash fair value adjustments to acquisition-related contingent consideration and small commodity derivative MTM effects .

Segment/Category Net Sales (Q3)

Category Net Sales ($USD Millions)	Q3 2024	Q3 2025
Sparkling Bottle/Can	$1,034.7	$1,083.1
Still Bottle/Can	$585.5	$643.3

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Volume (Std. Physical Cases, Millions)	89.9	90.7	92.8
Operating Cash Flow (YTD, $USD Millions)	$707.9 (9M’24)	$406.2 (1H’25)	$722.9 (9M’25)
Capital Expenditures (YTD, $USD Millions)	—	~$157 (1H’25)	~$210 (9M’25)
Capital Returned in Quarter ($USD Millions)	—	—	~$133 (Buybacks ~$111; Dividends ~$22)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY 2025	“~$300M” (reiterated in Q1 & Q2 2025 releases)	“~$300M” (reiterated with Q3 2025)	Maintained
Quarterly Dividend	Q3 2025	—	$0.25 per share declared (paid Aug 8, 2025)	N/A (declaration)
Quarterly Dividend	Q4 2025	Prior quarter at $0.25 implied by Q3	$0.25 per share declared (payable Nov 7, 2025)	Maintained

Note: Company does not provide quantitative revenue/EPS/margin guidance; continued to cite ~26% effective tax rate in period discussion (not formal guidance) .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript for Coca‑Cola Consolidated was available on the company’s IR site as of Nov 20, 2025; our document corpus also contained no COKE call transcript. We base thematic trends on the Q1–Q3 earnings releases and the Q3 10‑Q .

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Pricing & Mix	Annual price actions in Q1; Still mix shift pressured gross margin in Q1; Q2 pricing realization supported 10 bps gross margin expansion	Annual pricing plus volume drove net sales; Still and Sparkling both up; gross margin +10 bps	Improving
Category Performance	Q1: softness in Coca‑Cola Original Taste; Still ex‑Dasani healthy; Walmart distribution change reduced reported volume	Q2: Still +4.8%; Sparkling +3.0%; value channels strong	Q3: Still +9.9%; Sparkling +4.7%; zero‑sugar/flavors lead; Coke Original Taste headwinds moderate
Supply Chain	Ongoing investments; steady capex	Execution planning for value packages; responsive supply chain	Investments enabling demand fulfillment, profitable growth
Labor/Wages	Q1 SD&A +2.9% from wage adjustments; SD&A % rose 100 bps	Q2 SD&A +2.8%; SD&A % fell 10 bps	Q3 SD&A +6.6% on wage investments; SD&A % fell 10 bps YoY
Tariffs/Commodities	—	—	Aluminum import tariff volatility noted; pricing offset higher inputs
Channel/Value	—	Q2: Strength in large retail, club, value; softness in small store/on-premise	Q3: Large store, club, value drove Sparkling; broad Still demand
Capital Allocation	—	—	Q3 buybacks/dividends ~$133M; YTD ~$211M

Management Commentary

“We are beginning to see early returns on the teammate investment we announced last quarter, as our continued momentum in sales execution has led to solid market share growth across our portfolio.” – J. Frank Harrison III, Chairman & CEO .
“Investments in our supply chain and selling capabilities have allowed us to meet the increasing demands of our customers while delivering profitable growth in a dynamic period of cost inflation.” – Dave Katz, President & COO .
“Annual price increases… have been effective in offsetting the net impact of increased commodity costs, including the continued volatility of import tariffs on aluminum.” – Company statement in Q3 release .

Q&A Highlights

No Q3 2025 earnings call transcript or Q&A was available from Coca‑Cola Consolidated’s IR site as of Nov 20, 2025; we relied on the Q3 8‑K/press release and 10‑Q for qualitative context . Key clarifications embedded in filings:

Drivers of sales growth: roughly even split between higher average price/unit (~~$60M) and higher case volume (~~$60M) in Q3 .
Non‑GAAP context: Adjusted EPS excludes non‑cash fair value changes to the contingent consideration and minor commodity derivative MTM; Q3 adjusted net income $179.2M vs GAAP $142.3M .
Tax: Effective tax rate ~26% for Q3 2025 and Q3 2024 .

Estimates Context

S&P Global consensus estimates for Q3 2025 EPS and revenue were unavailable; GetEstimates returned no consensus values for EPS or revenue (actuals only). Values retrieved from S&P Global.
Implication: Without published consensus, buy‑side should anchor on YoY and sequential trends, margin trajectory, and capital allocation rather than an explicit “beat/miss” framing . Values retrieved from S&P Global.

Key Takeaways for Investors

Pricing power and Still momentum supported another quarter of margin resilience despite labor and commodity headwinds; gross margin held near 40% and operating margin expanded YoY .
Mix is favorable: zero‑sugar and flavors in Sparkling plus broad Still strength should continue to underpin topline even as Original Taste demand normalizes .
Labor cost step‑up is now in the base; SD&A leveraged modestly, suggesting operating discipline remains intact post‑wage investments .
Non‑cash contingent consideration fair value adjustments are a recurring swing factor in GAAP results; focus on adjusted EPS/operating metrics for underlying performance assessment .
Capital returns remain robust with continued buybacks and steady dividends ($0.25 per share declared in Q3; Q4 also declared at $0.25), offering support in volatile markets .
Capex outlook steady at ~$300M for 2025, funding supply chain and commercial capabilities that have supported share gains and execution – a medium‑term enabler for profitable growth .
Watch items into Q4: aluminum tariff/commodity volatility, consumer value-seeking channel mix, and Coke Original Taste trajectory; management cites pricing/mix and execution as offsets .

Appendix: Additional Documents Reviewed (Q3 Context)

Q3 2025 8‑K with Exhibit 99.1 earnings release and full financial statements .
Q3 2025 10‑Q MD&A excerpts for drivers (pricing/volume, customer mix, commodity exposure) .
Q2 2025 8‑K release and financials (sequential comparisons) .
Q1 2025 8‑K release and financials (trend analysis) .
Other relevant Q3‑period press releases: Q3 dividend ($0.25) and Q3 release timing .

Coca-Cola Consolidated, Inc. (COKE)·Q3 2025 Earnings Summary