Ambev shares steady as Q2 cash flow surges

Ambev shares steady as Q2 cash flow surges

SÃO PAULO, August 6, 2026, 11:15 BRT — B3 and NYSE open.

  • Shares of Ambev on B3 fell 0.6%, but its New York-listed ADR rose 0.3%.
  • Cash conversion in the second quarter increased to 73.9%, compared to 49.6% in the same period last year.
  • Roughly 71% of reported profit growth was attributed to reduced net finance costs.

Ambev delivered a more robust cash performance last quarter than was reflected in Thursday’s subdued stock reaction. The brewer’s operating cash flow increased by 54.5% to R$4.71 billion.

Stock chart for BVMF:ABEV3

This represented 73.9% of normalized EBITDA, compared to 49.6% in the previous year. The increase was 24.3 percentage points. In this context, cash conversion refers to operating cash flow as a percentage of normalized EBITDA.

The increase is significant for capital distributions. As of June 30, Ambev reported R$15.4 billion in net cash, representing about 6.2% of its market capitalization on B3.

Yet, profits reported were also notably bolstered below EBITDA. Net finance expenses saw an improvement of R$487.9 million. This figure accounted for roughly 71% of the R$684.1 million rise in reported profit.

The two stocks traded in different directions. The figures below were logged at 10:54 BRT and 9:59 ET.

ListingLast priceDay moveSession rangeMarket value
B3 common sharesR$15.74-0.63%R$15.68–R$15.78R$249.45 billion
NYSE ADR$3.04+0.33%$3.03–$3.05$47.87 billion

Core results for the quarter were strong. Organic revenue and EBITDA increased faster than volume, and margins expanded. The changes in profit and cash flow mentioned below are reported numbers.

MetricQ2 2025Q2 2026Change
Volume39.57 million hl39.73 million hl+1.4% organic
Net revenueR$20.09 billionR$20.15 billion+6.1% organic
Normalized EBITDAR$6.15 billionR$6.38 billion+8.9% organic
Normalized EBITDA margin30.6%31.6%+80 basis points organic
Normalized profitR$2.83 billionR$3.49 billion+23.3%
Operating cash flowR$3.05 billionR$4.71 billion+54.5%
Cash conversion49.6%73.9%+24.3 percentage points
Net finance expenseR$974 millionR$486 millionDown R$488 million

Chief Executive Carlos Lisboa stated, “The consistent execution of our growth strategy translated into another quarter of beer volume growth, with solid top and bottom-line performance.”

Brazil Beer delivered the strongest operational boost, with volume up 5.0%, EBITDA increasing by 12.8%, and margin widening by 110 basis points.

Business unitVolumeRevenueNormalized EBITDAEBITDA-margin change
Brazil Beerup 5.0%up 8.9%up 12.8%gain of 110 bps
Brazil non-alcoholic beveragesdown 4.4%up 1.4%up 13.8%gain of 320 bps
Central America and Caribbeanup 5.4%up 7.1%up 4.9%fall of 90 bps
Latin America Southdown 2.9%up 4.4%up 2.6%decline of 30 bps
Canadadown 1.8%up 2.1%up 2.9%gain of 30 bps

The segment breakdown indicates that pricing and cost control contributed more in areas beyond beer. In Brazil, the non-alcoholic division increased EBITDA even as volume slipped 4.4%. Central America and Latin America South recorded growth, though margins narrowed.

Analysts remain wary in their coverage. Ambev’s investor-relations roster includes more names than the three ratings recently shown on Google Finance, making direct comparison between the groups difficult.

Analyst coverage setBuyHold/NeutralSellTarget indication
Ambev investor-relations list, 18 analysts4113No average target provided
Google Finance recent set, 3 analysts021$3.20 average

The more limited group’s average target of $3.20 suggests an approximate 5.3% potential increase over the $3.04 ADR value. The estimates span from $2.90 to $3.50, indicating limited consensus on an imminent rerating.

Ambev’s market value sits between those of two major global brewers. The figures below are based on the most recent quote snapshots available for each market.

CompanyLast priceP/E ratioDisplayed dividend yield
Ambev S.A. R$15.7420.73 times4.00%
Anheuser-Busch InBev SA/NV (EBR:ABI)€73.5218.27 times1.09%
Heineken N.V. €78.6623.24 times2.42%

Ambev’s trading value stands around 13% higher than AB InBev’s earnings multiple and about 11% under Heineken’s. It also displays the strongest yield shown in the sector. Earnings outperformance has not always lifted stocks: shares in AB InBev dropped following a quarter that exceeded forecasts.

The balance sheet permits additional distributions. By July 30, Ambev had distributed approximately R$5.9 billion to shareholders, having completed nearly 95% of its buyback program. The company also authorized around R$1.1 billion in new interest on capital.

Uncertainties persist. Brazil Beer expects its cash cost of goods sold per hectoliter to rise by 4.5% to 7.5% this year. Canadian demand remained weak, and Bolivia encountered road blockades. Hyperinflation accounting is still necessary in Argentina.

Ambev is set to release its third-quarter results on October 29, marking the next planned test. Ahead of that, the company will make a R$1.9 billion interest-on-capital payment on October 6, which investors will be monitoring closely. Market watchers will also assess if the cash conversion rate stays above 70%.

TS2 TECH • EXTENDED COVERAGE

Further analysis

Did Ambev's Q2 results bolster the outlook for earnings?
Net revenue amounted to R$20.15 billion, up 6.1% on an organic basis and 0.3% on a reported basis. Normalized EBITDA advanced 8.9% organically to R$6.38 billion, with reported growth at 3.6%. The margin stood at 31.6%. Normalized profit increased 23.3% to R$3.49 billion. The difference between organic and reported results underscores the influence of currency and scope effects.
Is the increase in volume widespread enough to sustain momentum after the World Cup?
Organic consolidated volume increased by 1.4%, driven by a 5.0% rise in Brazil Beer and a 5.4% gain in CAC. Volume for Brazil NAB declined 4.4%, LAS dropped 2.9%, and Canada was down 1.8%. Premium beer experienced growth in the high-teens range, whereas mainstream volume edged down. Management referenced demand during the World Cup and suggested there were share gains in Brazil. The main test will come with the trend after the tournament.
Will Ambev maintain margins amid rising Brazil Beer costs?
The full-year outlook is maintained. Brazil Beer cash COGS per hectoliter is expected to increase by 4.5%–7.5%, not counting marketplace sales. In the second quarter, this cost climbed 4.5%, and net revenue per hectoliter increased 4.4%. The normalized EBITDA margin for Brazil Beer grew by 110 basis points to 33.5%. Strict cost control helped counterbalance the slimmer pricing gap.
What is the additional capital Ambev could distribute?
Operating cash flow for the second quarter increased by 54.5% to R$4.71 billion. As of June 30, net cash amounted to R$15.4 billion. Ambev repurchased 198.5 million shares out of 208 million authorized, representing 95.4%. The company plans to pay R$1.9 billion in gross interest on capital on October 6 and will make another gross distribution of R$1.1 billion before the end of the year.
To what extent does ABEV’s price already factor in a recovery?
ABEV was last quoted at $3.04 at 14:01 UTC, advancing 0.3% on the day. The ADR was 45% higher than its 52-week low of $2.10 and hovered roughly 12% under its $3.45 52-week high.
Iwona Majkowska

Iwona Majkowska is a financial markets journalist at TS2.tech, specializing in stocks, artificial intelligence and technology. A graduate of the Warsaw School of Economics, she previously worked in equity research and financial analysis before focusing on market reporting. Her daily coverage helps investors follow major developments across U.S. and global markets. Follow Iwona Majkowska on Google News.

AI PORTFOLIO

Top Stock Picks

Today’s highest-ranked model selections.

#1 STRONG BUY

CACI International

NYSE: CACI 95 / 100
#2 BUY

Constellation Energy

NASDAQ: CEG 93 / 100
#3 BUY

AerCap

NYSE: AER 91 / 100
#4 BUY ON PULLBACK

Motorola Solutions

NYSE: MSI 89 / 100
#5 ACCUMULATE

Walt Disney

NYSE: DIS 87 / 100
View full portfolio
Editorial model selection. Not personalised advice.
SoFi Technologies (NASDAQ:SOFI) Shares Unmoved as Launch of New Funds Puts Fee Growth to the Test
Previous Story

SoFi Technologies (NASDAQ:SOFI) Shares Unmoved as Launch of New Funds Puts Fee Growth to the Test

Becton Dickinson shares climb following earnings beat, with focus on Q4 cash-flow strength
Next Story

Becton Dickinson shares climb following earnings beat, with focus on Q4 cash-flow strength