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

Anheuser-Busch InBev Targets 5% to 9% Annual EBIT Growth in Reignite Phase Written by MarketBeat September 23, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. 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. Five stocks to consider instead of Anheuser-Busch InBev SA/NV . Treasury Yields Hit a 19-Year High—These 2 Bond ETFs Offer Monthly Income 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. Get BUD alerts: Sign Up The World Cup Is Coming—These 3 Stocks Could Cash In “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. Before the IPO: 4 Companies That Rewarded Investors Who Got In Early 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...