[8-K] MPLX LP Reports Material Event
FY25 headline: Reported net sales $20.2 bn (-0.1%); organic +1.7% (vol +0.9%, price/mix +0.8%). Pre-exceptional operating profit $5.7 bn, down 0.7% organically; margin 28.2% (-68 bps). Reported operating profit $4.3 bn (-27.8%) after impairments, driving EPS to 105.9c (-38.9%). EPS before exceptionals 164.2c (-8.6%).
Cash & leverage: Operating cash flow climbed to $4.3 bn; free cash flow $2.7 bn. Net debt $21.9 bn; leverage 3.4脳 EBITDA, within the 3.3-3.5脳 band. Board recommends full-year dividend 103.48c (final 62.98c).
Strategic moves & outlook: 鈥楢ccelerate鈥� savings target lifted to 鈮�$625 m (from $500 m) over three years. FY26 guide: organic sales growth similar to FY25; mid-single-digit organic operating profit growth, H2-weighted; FCF 鈮�$3 bn; capex $1.2-1.3 bn. Management prioritises cost efficiency, balance-sheet strength and targeted brand investment.
Principali dati FY25: Vendite nette riportate a $20,2 mld (-0,1%); crescita organica +1,7% (volume +0,9%, prezzo/mix +0,8%). Utile operativo pre-eccezionali $5,7 mld, in calo dello 0,7% organico; margine 28,2% (-68 punti base). Utile operativo riportato $4,3 mld (-27,8%) dopo svalutazioni, con EPS a 105,9 centesimi (-38,9%). EPS prima degli elementi eccezionali 164,2 centesimi (-8,6%).
Liquidit脿 e leva finanziaria: Flusso di cassa operativo salito a $4,3 mld; flusso di cassa libero $2,7 mld. Debito netto $21,9 mld; leva finanziaria 3,4脳 EBITDA, all鈥檌nterno della fascia 3,3-3,5脳. Il consiglio raccomanda dividendo annuale di 103,48 centesimi (finale 62,98 centesimi).
Mosse strategiche e prospettive: Obiettivo di risparmio 鈥淎ccelerate鈥� aumentato a circa $625 mln (da $500 mln) in tre anni. Guida FY26: crescita organica delle vendite simile al FY25; crescita organica dell鈥檜tile operativo a cifra media singola, concentrata nel secondo semestre; FCF circa $3 mld; investimenti in capitale $1,2-1,3 mld. La direzione d脿 priorit脿 all鈥檈fficienza dei costi, solidit脿 del bilancio e investimenti mirati nei marchi.
Resumen FY25: Ventas netas reportadas de $20,2 mil millones (-0,1%); crecimiento org谩nico +1,7% (volumen +0,9%, precio/mezcla +0,8%). Beneficio operativo antes de excepcionales $5,7 mil millones, disminuci贸n org谩nica del 0,7%; margen 28,2% (-68 puntos b谩sicos). Beneficio operativo reportado $4,3 mil millones (-27,8%) tras deterioros, con BPA en 105,9 centavos (-38,9%). BPA antes de excepcionales 164,2 centavos (-8,6%).
Flujo de caja y apalancamiento: Flujo de caja operativo aument贸 a $4,3 mil millones; flujo de caja libre $2,7 mil millones. Deuda neta $21,9 mil millones; apalancamiento 3,4脳 EBITDA, dentro del rango 3,3-3,5脳. La junta recomienda dividendo anual completo de 103,48 centavos (final 62,98 centavos).
Movimientos estrat茅gicos y perspectivas: Objetivo de ahorros 鈥淎ccelerate鈥� elevado a aproximadamente $625 millones (desde $500 millones) en tres a帽os. Gu铆a FY26: crecimiento org谩nico de ventas similar a FY25; crecimiento org谩nico del beneficio operativo de un d铆gito medio, con peso en el segundo semestre; FCF 鈮� $3 mil millones; capex $1,2-1,3 mil millones. La direcci贸n prioriza eficiencia de costos, fortaleza del balance y inversi贸n focalizada en marcas.
FY25 欤检殧 雮挫毄: 氤搓碃霅� 靾滊Г於� $202鞏� (-0.1%); 鞙犼赴鞝� 靹膘灔 +1.7% (氍茧焿 +0.9%, 臧�瓴�/氙轨姢 +0.8%). 鞓堨櫢鞝� 頃 鞝滌櫢 鞓侅梾鞚挫澋 $57鞏�, 鞙犼赴鞝� 旮办 0.7% 臧愳唽; 毵堨 28.2% (-68bps). 臧愱皜靸侁皝 頉� 氤搓碃霅� 鞓侅梾鞚挫澋 $43鞏� (-27.8%), EPS 105.9靹柬姼 (-38.9%). 鞓堨櫢鞝� 頃 鞝滌櫢 EPS 164.2靹柬姼 (-8.6%).
順勱笀 氚� 霠堧矂毽: 鞓侅梾 順勱笀 頋愲 $43鞏奠溂搿� 歃濌皜; 鞛愳湢 順勱笀 頋愲 $27鞏�. 靾滊秬毂� $219鞏�; 霠堧矂毽 3.4氚� EBITDA, 3.3-3.5氚� 氩旍渼 雮�. 鞚挫偓須岆姅 鞐瓣皠 氚半嫻旮� 103.48靹柬姼(斓滌 62.98靹柬姼) 甓岅碃.
鞝勲灥鞝� 鞗�歆侅瀯 氚� 鞝勲: 鈥楢ccelerate鈥� 牍勳毄 鞝堦皭 氇╉憸毳� 3雲勱皠 鞎� $6.25鞏�(旮办〈 $5鞏�)鞙茧 靸來枼 臁办爼. FY26 臧�鞚措崢鞀�: FY25鞕� 鞙犾偓頃� 鞙犼赴鞝� 毵れ稖 靹膘灔; 欷戧皠 頃� 鞛愲靾� 鞙犼赴鞝� 鞓侅梾鞚挫澋 靹膘灔, 頃橂皹旮� 歆戩; 鞛愳湢 順勱笀 頋愲 鞎� $30鞏�; 靹る箘 韴瀽 $12-13鞏�. 瓴届榿歆勳潃 牍勳毄 須湪靹�, 鞛 瓯挫爠靹�, 氇╉憸 敫岆灉霌� 韴瀽鞐� 鞖办劆靾滌渼 攵�鞐�.
Chiffres cl茅s FY25 : Chiffre d鈥檃ffaires net d茅clar茅 de 20,2 Mds $ (-0,1 %) ; croissance organique +1,7 % (volume +0,9 %, prix/mix +0,8 %). R茅sultat op茅rationnel avant 茅l茅ments exceptionnels de 5,7 Mds $, en baisse organique de 0,7 % ; marge de 28,2 % (-68 points de base). R茅sultat op茅rationnel d茅clar茅 de 4,3 Mds $ (-27,8 %) apr猫s d茅pr茅ciations, BPA 脿 105,9 cents (-38,9 %). BPA avant 茅l茅ments exceptionnels de 164,2 cents (-8,6 %).
Tr茅sorerie et endettement : Flux de tr茅sorerie op茅rationnel en hausse 脿 4,3 Mds $ ; flux de tr茅sorerie libre de 2,7 Mds $. Dette nette de 21,9 Mds $ ; levier de 3,4脳 EBITDA, dans la fourchette 3,3-3,5脳. Le conseil d鈥檃dministration recommande un dividende annuel de 103,48 cents (dernier acompte 62,98 cents).
Mouvements strat茅giques et perspectives : Objectif d鈥櫭ヽonomies 芦 Accelerate 禄 relev茅 脿 environ 625 M$ (contre 500 M$) sur trois ans. Pr茅visions FY26 : croissance organique des ventes similaire 脿 FY25 ; croissance organique du r茅sultat op茅rationnel 脿 un rythme moyen 脿 un chiffre, pond茅r茅e au second semestre ; flux de tr茅sorerie libre 鈮� 3 Mds $ ; investissements en capital de 1,2 脿 1,3 Mds $. La direction privil茅gie l鈥檈fficacit茅 des co没ts, la solidit茅 du bilan et un investissement cibl茅 dans les marques.
FY25 Kernaussagen: Gemeldeter Nettoumsatz $20,2 Mrd. (-0,1%); organisches Wachstum +1,7% (Volumen +0,9%, Preis/Mix +0,8%). Operativer Gewinn vor Sondereinfl眉ssen $5,7 Mrd., organisch um 0,7% r眉ckl盲ufig; Marge 28,2% (-68 Basispunkte). Gemeldeter operativer Gewinn $4,3 Mrd. (-27,8%) nach Wertminderungen, Ergebnis je Aktie (EPS) bei 105,9 Cent (-38,9%). EPS vor Sondereinfl眉ssen 164,2 Cent (-8,6%).
Barmittel & Verschuldung: Operativer Cashflow stieg auf $4,3 Mrd.; freier Cashflow $2,7 Mrd. Nettoverschuldung $21,9 Mrd.; Verschuldungsgrad 3,4脳 EBITDA, im Zielband von 3,3-3,5脳. Der Vorstand empfiehlt eine Dividende von 103,48 Cent f眉r das Gesamtjahr (final 62,98 Cent).
Strategische Ma脽nahmen & Ausblick: Einsparziel 鈥濧ccelerate鈥� auf ca. $625 Mio. (vorher $500 Mio.) 眉ber drei Jahre erh枚ht. FY26 Prognose: organisches Umsatzwachstum 盲hnlich FY25; organisches operatives Gewinnwachstum im mittleren einstelligen Bereich, mit Schwerpunkt im zweiten Halbjahr; freier Cashflow ca. $3 Mrd.; Investitionen $1,2-1,3 Mrd. Management priorisiert Kosteneffizienz, Bilanzst盲rke und gezielte Markeninvestitionen.
- Organic net sales grew 1.7% despite industry softness, indicating pricing power and diversified portfolio.
- Free cash flow increased to $2.7 bn, and FY26 target is ~$3 bn, supporting capital returns.
- Cost-savings program target raised to ~$625 m, offering margin upside from FY26 onward.
- Leverage at 3.4脳 EBITDA remains within management鈥檚 preferred range, preserving financial flexibility.
- Full-year dividend of 103.48c reaffirms commitment to shareholder payouts.
- Reported operating profit fell 27.8% due to impairments and restructuring charges.
- EPS declined 38.9%, significantly reducing near-term earnings power.
- Operating margin contracted 819 bps on a reported basis; even pre-exceptional margin down 68 bps.
- FY26 guidance calls for flat H1 organic sales, signalling continued demand headwinds and limited growth acceleration.
Insights
TL;DR: Mixed print鈥攐rganic growth resilient but heavy impairments crush reported earnings; guidance steady, cost-cut goal raised.
Organic top-line expansion of 1.7% is respectable given soft US spirits trends, confirming pricing power and portfolio breadth. However, 28% drop in reported EBIT and 39% EPS decline reflect sizeable impairment and restructuring charges, underlining execution risk. Margin before exceptionals slipped just 68 bps, suggesting underlying profitability is holding, yet continued opex investment weighs. Cash generation remains robust鈥擣CF yield ~6%鈥攁nd leverage at 3.4脳 meets target, de-risking the dividend. Raising the Accelerate savings target to $625 m should support the guided mid-single-digit EBIT growth in FY26, but management still expects a weak H1 and flat organic sales, signalling limited near-term catalysts. Overall impact neutral: valuation hinges on delivery of cost cuts and revived US momentum.
TL;DR: Solid cash and dividend, yet tepid growth outlook keeps shares in 鈥渟how-me鈥� mode.
Diageo鈥檚 cash story is intact鈥�$2.7 bn FCF and a 103.48c dividend support income mandates. Still, reported profit collapse and margin erosion highlight sensitivity to FX and one-offs. The leverage ceiling of 3.5脳 leaves little headroom for large M&A until savings land. FY26 guide implies ~5% EBIT growth鈥攁dequate but not exciting against mid-teens historical rates. Successful execution of the $625 m Accelerate program and premiumisation of tequila and Guinness franchises are key swing factors. I see the release as balance-neutral: long-only funds will likely hold, while growth-oriented investors wait for clear re-acceleration.
Principali dati FY25: Vendite nette riportate a $20,2 mld (-0,1%); crescita organica +1,7% (volume +0,9%, prezzo/mix +0,8%). Utile operativo pre-eccezionali $5,7 mld, in calo dello 0,7% organico; margine 28,2% (-68 punti base). Utile operativo riportato $4,3 mld (-27,8%) dopo svalutazioni, con EPS a 105,9 centesimi (-38,9%). EPS prima degli elementi eccezionali 164,2 centesimi (-8,6%).
Liquidit脿 e leva finanziaria: Flusso di cassa operativo salito a $4,3 mld; flusso di cassa libero $2,7 mld. Debito netto $21,9 mld; leva finanziaria 3,4脳 EBITDA, all鈥檌nterno della fascia 3,3-3,5脳. Il consiglio raccomanda dividendo annuale di 103,48 centesimi (finale 62,98 centesimi).
Mosse strategiche e prospettive: Obiettivo di risparmio 鈥淎ccelerate鈥� aumentato a circa $625 mln (da $500 mln) in tre anni. Guida FY26: crescita organica delle vendite simile al FY25; crescita organica dell鈥檜tile operativo a cifra media singola, concentrata nel secondo semestre; FCF circa $3 mld; investimenti in capitale $1,2-1,3 mld. La direzione d脿 priorit脿 all鈥檈fficienza dei costi, solidit脿 del bilancio e investimenti mirati nei marchi.
Resumen FY25: Ventas netas reportadas de $20,2 mil millones (-0,1%); crecimiento org谩nico +1,7% (volumen +0,9%, precio/mezcla +0,8%). Beneficio operativo antes de excepcionales $5,7 mil millones, disminuci贸n org谩nica del 0,7%; margen 28,2% (-68 puntos b谩sicos). Beneficio operativo reportado $4,3 mil millones (-27,8%) tras deterioros, con BPA en 105,9 centavos (-38,9%). BPA antes de excepcionales 164,2 centavos (-8,6%).
Flujo de caja y apalancamiento: Flujo de caja operativo aument贸 a $4,3 mil millones; flujo de caja libre $2,7 mil millones. Deuda neta $21,9 mil millones; apalancamiento 3,4脳 EBITDA, dentro del rango 3,3-3,5脳. La junta recomienda dividendo anual completo de 103,48 centavos (final 62,98 centavos).
Movimientos estrat茅gicos y perspectivas: Objetivo de ahorros 鈥淎ccelerate鈥� elevado a aproximadamente $625 millones (desde $500 millones) en tres a帽os. Gu铆a FY26: crecimiento org谩nico de ventas similar a FY25; crecimiento org谩nico del beneficio operativo de un d铆gito medio, con peso en el segundo semestre; FCF 鈮� $3 mil millones; capex $1,2-1,3 mil millones. La direcci贸n prioriza eficiencia de costos, fortaleza del balance y inversi贸n focalizada en marcas.
FY25 欤检殧 雮挫毄: 氤搓碃霅� 靾滊Г於� $202鞏� (-0.1%); 鞙犼赴鞝� 靹膘灔 +1.7% (氍茧焿 +0.9%, 臧�瓴�/氙轨姢 +0.8%). 鞓堨櫢鞝� 頃 鞝滌櫢 鞓侅梾鞚挫澋 $57鞏�, 鞙犼赴鞝� 旮办 0.7% 臧愳唽; 毵堨 28.2% (-68bps). 臧愱皜靸侁皝 頉� 氤搓碃霅� 鞓侅梾鞚挫澋 $43鞏� (-27.8%), EPS 105.9靹柬姼 (-38.9%). 鞓堨櫢鞝� 頃 鞝滌櫢 EPS 164.2靹柬姼 (-8.6%).
順勱笀 氚� 霠堧矂毽: 鞓侅梾 順勱笀 頋愲 $43鞏奠溂搿� 歃濌皜; 鞛愳湢 順勱笀 頋愲 $27鞏�. 靾滊秬毂� $219鞏�; 霠堧矂毽 3.4氚� EBITDA, 3.3-3.5氚� 氩旍渼 雮�. 鞚挫偓須岆姅 鞐瓣皠 氚半嫻旮� 103.48靹柬姼(斓滌 62.98靹柬姼) 甓岅碃.
鞝勲灥鞝� 鞗�歆侅瀯 氚� 鞝勲: 鈥楢ccelerate鈥� 牍勳毄 鞝堦皭 氇╉憸毳� 3雲勱皠 鞎� $6.25鞏�(旮办〈 $5鞏�)鞙茧 靸來枼 臁办爼. FY26 臧�鞚措崢鞀�: FY25鞕� 鞙犾偓頃� 鞙犼赴鞝� 毵れ稖 靹膘灔; 欷戧皠 頃� 鞛愲靾� 鞙犼赴鞝� 鞓侅梾鞚挫澋 靹膘灔, 頃橂皹旮� 歆戩; 鞛愳湢 順勱笀 頋愲 鞎� $30鞏�; 靹る箘 韴瀽 $12-13鞏�. 瓴届榿歆勳潃 牍勳毄 須湪靹�, 鞛 瓯挫爠靹�, 氇╉憸 敫岆灉霌� 韴瀽鞐� 鞖办劆靾滌渼 攵�鞐�.
Chiffres cl茅s FY25 : Chiffre d鈥檃ffaires net d茅clar茅 de 20,2 Mds $ (-0,1 %) ; croissance organique +1,7 % (volume +0,9 %, prix/mix +0,8 %). R茅sultat op茅rationnel avant 茅l茅ments exceptionnels de 5,7 Mds $, en baisse organique de 0,7 % ; marge de 28,2 % (-68 points de base). R茅sultat op茅rationnel d茅clar茅 de 4,3 Mds $ (-27,8 %) apr猫s d茅pr茅ciations, BPA 脿 105,9 cents (-38,9 %). BPA avant 茅l茅ments exceptionnels de 164,2 cents (-8,6 %).
Tr茅sorerie et endettement : Flux de tr茅sorerie op茅rationnel en hausse 脿 4,3 Mds $ ; flux de tr茅sorerie libre de 2,7 Mds $. Dette nette de 21,9 Mds $ ; levier de 3,4脳 EBITDA, dans la fourchette 3,3-3,5脳. Le conseil d鈥檃dministration recommande un dividende annuel de 103,48 cents (dernier acompte 62,98 cents).
Mouvements strat茅giques et perspectives : Objectif d鈥櫭ヽonomies 芦 Accelerate 禄 relev茅 脿 environ 625 M$ (contre 500 M$) sur trois ans. Pr茅visions FY26 : croissance organique des ventes similaire 脿 FY25 ; croissance organique du r茅sultat op茅rationnel 脿 un rythme moyen 脿 un chiffre, pond茅r茅e au second semestre ; flux de tr茅sorerie libre 鈮� 3 Mds $ ; investissements en capital de 1,2 脿 1,3 Mds $. La direction privil茅gie l鈥檈fficacit茅 des co没ts, la solidit茅 du bilan et un investissement cibl茅 dans les marques.
FY25 Kernaussagen: Gemeldeter Nettoumsatz $20,2 Mrd. (-0,1%); organisches Wachstum +1,7% (Volumen +0,9%, Preis/Mix +0,8%). Operativer Gewinn vor Sondereinfl眉ssen $5,7 Mrd., organisch um 0,7% r眉ckl盲ufig; Marge 28,2% (-68 Basispunkte). Gemeldeter operativer Gewinn $4,3 Mrd. (-27,8%) nach Wertminderungen, Ergebnis je Aktie (EPS) bei 105,9 Cent (-38,9%). EPS vor Sondereinfl眉ssen 164,2 Cent (-8,6%).
Barmittel & Verschuldung: Operativer Cashflow stieg auf $4,3 Mrd.; freier Cashflow $2,7 Mrd. Nettoverschuldung $21,9 Mrd.; Verschuldungsgrad 3,4脳 EBITDA, im Zielband von 3,3-3,5脳. Der Vorstand empfiehlt eine Dividende von 103,48 Cent f眉r das Gesamtjahr (final 62,98 Cent).
Strategische Ma脽nahmen & Ausblick: Einsparziel 鈥濧ccelerate鈥� auf ca. $625 Mio. (vorher $500 Mio.) 眉ber drei Jahre erh枚ht. FY26 Prognose: organisches Umsatzwachstum 盲hnlich FY25; organisches operatives Gewinnwachstum im mittleren einstelligen Bereich, mit Schwerpunkt im zweiten Halbjahr; freier Cashflow ca. $3 Mrd.; Investitionen $1,2-1,3 Mrd. Management priorisiert Kosteneffizienz, Bilanzst盲rke und gezielte Markeninvestitionen.
FAQ
How did Diageo's (DEO) revenue perform in FY25?
What caused the large drop in Diageo's earnings per share?
What is the new target for Diageo's Accelerate cost-saving program?
What leverage ratio did Diageo report at year-end FY25?
What guidance has Diageo provided for FY26 free cash flow?
Is Diageo maintaining its dividend?
