Anheuser-Busch InBev Targets 5% to 9% Annual EBIT Growth in Reignite Phase

Key Points

• AB InBev is entering a “reignite” phase and targets average annual EBIT growth of 5% to 9%, shifting its primary performance metric from EBITDA to EBIT. The company maintained its 2026 EBITDA growth outlook of 4% to 8%.
• The brewer highlighted improving financial performance, including free cash flow of nearly $14 billion, expanded margins, stronger return on invested capital and net debt-to-EBITDA leverage below 3 times.
• Management plans to prioritize organic growth, progressively increase dividends, complete its current $6 billion share-repurchase program and selectively pursue acquisitions, with Beyond Beer identified as a fast-growing $2 billion business.

Anheuser-Busch InBev SA/NV NYSE: BUD outlined a new medium-term target for 5% to 9% average annual EBIT growth as the brewer shifts its primary performance measure from EBITDA to EBIT, citing improved balance-sheet strength, capital efficiency and an increased focus on organic growth.

Speaking at the company’s 2026 Capital Markets Day in St. Louis, Chief Financial Officer Fernando Tennenbaum said the company’s strategy to “optimize our business” centers on consistent growth, disciplined resource allocation, free cash flow generation and dynamic capital allocation.

“We want to maximize shareholder value over time,” Tennenbaum said, adding that investments, operating decisions and capital allocation choices are being evaluated through that lens.

Growth, Margins and Cash Flow

Tennenbaum said AB InBev has invested more than $7 billion annually in sales and marketing on average since 2021, supporting its brands, commercial platforms and operating capabilities. He said the company’s revenue has compounded at a mid-single-digit rate over the past five years, supported by volume, revenue management and favorable mix.

The CFO said the company expanded gross margin by 200 basis points and EBITDA margin by 220 basis points between 2023 and 2025. The improvement came as input costs increased broadly in line with inflation, allowing the brewer to pursue disciplined revenue management, production efficiencies and overhead-cost controls while continuing brand investment.

Underlying earnings per share increased at an 8.3% compound annual growth rate since 2021, according to Tennenbaum. He also said return on invested capital has risen 120 basis points since 2021, driven by profit growth and improved capital efficiency.

AB InBev reduced net capital expenditures to $3.6 billion in 2025 from $5.5 billion in 2021. Nearly half of capital expenditures have been directed toward growth projects, including a $400 million brewery in Colombia, expanded Beyond Beer, premium beer and non-alcohol beer production, and supply-chain investments.

The company said it is targeting an average water-use efficiency ratio of two hectoliters of water per hectoliter of production across its global breweries by 2030.

Free cash flow rose from $9 billion in 2021 to nearly $14 billion over the 12 months ended June 30, 2026, Tennenbaum said. He cited EBITDA growth, disciplined capital expenditures, lower net interest expense from deleveraging and the company’s negative working-capital cycle as factors supporting cash generation.

Capital Allocation Priorities

AB InBev said its first capital allocation priority remains funding organic growth. After that, excess cash is allocated among deleveraging, shareholder returns and selective mergers and acquisitions.

The company allocated $25 billion of cash toward debt reduction from 2021 through 2025 and reached a net debt-to-EBITDA ratio below 3 times for the first time since 2015, according to Tennenbaum. Leverage stood at 2.87 times at the end of 2025, while the company’s stated optimal capital structure remains around 2 times.

Management said it intends to fully fund growth plans, progressively raise its dividend, complete its current $6 billion share repurchase program and continue strengthening the balance sheet. AB InBev has completed $5.5 billion in share repurchases since 2023, with $3.7 billion remaining under a 24-month program announced in October 2025.

Tennenbaum said acquisitions and divestitures must compete with organic investments for capital. He pointed to bolt-on acquisitions including BeatBox, as well as earlier acquisitions of Cutwater and NÜTRL, while noting the company has sold non-core brands and assets in the U.S.

Shift to EBIT Outlook

Management said the move from an EBITDA target to an EBIT target reflects the company’s transition from a “reset” phase focused on deleveraging and capability building to a “reignite” phase centered on growth and asset utilization.

“When you move into reignite, it’s not only the growth that you generate, but how you grow,” Tennenbaum said in response to an analyst question. He added that depreciation is a lagging indicator and that the company still expects some benefit from lower capital spending to emerge in depreciation expense.

The company maintained its 2026 outlook for EBITDA growth of 4% to 8% and said it will provide an outlook for 2027 when it reports full-year 2026 results.

Chief Executive Officer Michel Doukeris said the company aims to sustain growth, accelerate growth investments and translate those efforts into shareholder value. He described beer as the company’s core business while identifying Beyond Beer, digital products and selected adjacent categories as opportunities that can complement its existing brands and route-to-market capabilities.

Doukeris said Beyond Beer currently represents a $2 billion business growing at more than 30%, according to his remarks. He also said the company will assess additional opportunities market by market, provided they offer attractive returns and leverage AB InBev’s existing assets.

In Asia, Doukeris said AB InBev sees long-term potential but acknowledged challenges in China, where post-pandemic shifts in geography and sales channels affected the business. He said the company is adjusting its portfolio, channel strategy and geographic focus. Outside China, he cited share gains in South Korea, high-double-digit growth in parts of Southeast Asia and a more than 20% share position in India.

“The Reset is complete, and the Reignite has begun,” Doukeris said in closing the event.

About Anheuser-Busch InBev SA/NV (NYSE:BUD)

Anheuser-Busch InBev SA/NV is a global brewing and beverage company headquartered in Leuven, Belgium. The company produces, markets and distributes beer and other alcoholic and nonalcoholic beverages through a broad portfolio of international, regional and local brands.

Its leading brands include Budweiser, Bud Light, Corona, Stella Artois, Michelob ULTRA, Beck's, Hoegaarden and Leffe. AB InBev also offers a range of craft, premium, flavored and alcohol-free beverages, serving consumers through retail, hospitality and e-commerce channels.

The company was formed in 2008 through the combination of InBev and Anheuser-Busch, bringing together Anheuser-Busch's U.S.

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