Constellation Brands (STZ) Q4 2025 earnings summary

Executive summary

• Achieved enterprise net sales growth of 2% to $10.2B in FY25, with substantial comparable operating margin and double-digit comparable EPS growth, despite softer consumer demand due to non-structural socioeconomic factors.

• Attained #1 growth leader status among large CPG companies, driven by high-end beer and premium wine/spirits portfolio.

• Completed significant portfolio reshaping, including SVEDKA and 2025 Wine Divestitures, and restructuring actions expected to generate over $200M in annualized cost savings by FY28.

• Returned nearly $1.9B to shareholders in FY25, including $1.1B in share repurchases and $732M in dividends.

• Maintained disciplined capital allocation and strong brand health, with significant share gains and continued consumer loyalty, especially among Hispanic consumers.

Financial highlights

• FY25 net sales rose 2% to $10.2B; comparable operating income grew 7% to $3.5B; comparable EPS increased 11% to $13.78.

• Beer segment net sales up 5% to $8.54B; operating income up 10% to $3.39B; operating margin increased 180 bps to 39.7%.

• Wine & Spirits net sales declined 7% to $1.67B; operating income down 18% to $325M, reflecting divestitures.

• FY25 reported net loss attributable to CBI of $81M due to non-cash impairments and divestiture impacts; reported EPS $(0.45) due to $3.3B non-cash impairment.

• Operating cash flow $3.2B (up 13%); free cash flow $1.94B (up 28%).

Outlook and guidance

• FY26–FY28: Enterprise net sales expected to grow at low single-digit CAGR; operating margin ~34–35%.

• Beer net sales growth guidance: 0–3% for FY26, 2–4% for FY27–FY28; operating margins expected at 39–40% for FY27–FY28.

• Wine & Spirits segment to deliver up to 3% net sales growth and 22–24% operating margins post-divestiture.

• Cumulative operating cash flow of ~$9B and free cash flow of $6–7B expected from FY26–FY28.

• Guidance incorporates U.S. and Canadian tariffs, with no material macroeconomic improvement expected; some marginal improvement possible in 2026.