Treasury Wine Estates (TWE) H2 2025 earnings summary

Executive summary

• Net sales revenue grew 7.2% to $2.9 billion and EBIT/EBITS increased 17% to $770.3 million, driven by Penfolds and the full-year contribution of DAOU in the U.S.

• Organic NSR declined 1.1% due to declines in Premium and Commercial portfolios, but luxury-led growth offset these declines.

• Operating cash flow rose 22.9%, reducing leverage to 1.9x, within the target range.

• Announced a $200 million share buyback for FY26, to be executed progressively and funded from existing liquidity.

• Transitioned to a new divisional model: Treasury Americas becomes luxury-focused, and Treasury Collective is formed as the Global Premium Brands Division.

Financial highlights

• Net profit after tax increased 15.5% to $470.6 million; EPS up 10.8% to $0.58.

• EBIT/EBITS margin expanded 2.2 points to 26.2%; ROCE improved to 11.9%.

• Final dividend of $0.40 per share (70% franked), up 11.1% year-over-year, payout ratio at 69%.

• NSR per case increased 10% to $138.

• Net operating cash flow up 22.9%; cash conversion at 87.4%.

Outlook and guidance

• FY26 EBIT/EBITS growth expected for Penfolds, with low to mid double-digit growth driven by increased BIN and ICON portfolio availability in Q4 and continued momentum in Asia.

• EBIT/EBITS margin for Penfolds expected to remain at ~44%; growth weighted to 2H26.

• Treasury Americas expects modest EBIT/EBITS growth, contingent on mitigating reduced California shipments; $50 million NSR impact expected from distributor transition.

• Treasury Collective's top-line decline expected to moderate, with growth from priority brands partially offsetting commercial declines.