SAM · The Boston Beer Company, Inc.

The filing discloses a significant adverse legal development for The Boston Beer Company, with a jury verdict awarding approximately $175.5 million in damages to Ardagh Metal Packaging USA Corp. related to alleged failures to purchase minimum volumes of aluminum beverage cans from 2021 to 2025. While the verdict amount falls within the company's previously disclosed range of zero to $300 million, the company maintains its position that it did not breach the contract and plans to challenge the outcome through post-trial motions and appeals, indicating the financial obligation is not yet final. The company is assessing the financial impact and currently estimates recording a pre-tax one-time litigation expense liability of $175.5 million plus any accrued interest. To address a potential payment, the company cites strong liquidity, with $223.4 million in cash and no debt as of late December 2025, plus $150.0 million available under its line of credit, and states such a payment would not materially affect its operating plans. Furthermore, the company signals business continuity by affirming its intention to proceed with a previously announced share repurchase program. Investors should monitor the progression of post-trial legal proceedings, the final court judgment, and the company's first quarter 2026 financial statements scheduled for release on April 30, 2026, for the formal accounting of this liability.