Companies /Consumer Defensive

Constellation Brands Inc - Class A

NYSE: STZ Beverages - Brewers
$133.00
▼ $1.46 (−1.08%) today
Markets open · 1:41pm ET

Q4 2025 Earnings

Reported Apr 9, 2025, 4:55pm ET · SEC source
$2.63
Beat +15.86%
EPS · est. $2.27
$2.2B
Beat +1.22%
Revenue · est. $2.1B
−10.3%
Trailing market
STZ vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%Apr 9Apr 10report 4:55pm ETearnings−3.7%+5.3%
−5%0+5%Apr 9Apr 10earnings−3.7%+5.3%
STZ +5.3%S&P 500 −3.7%
−10%−5%0+5%Apr 9Apr 10report 4:55pm ETearnings−4.4%+5.3%
−10%−5%0+5%Apr 9Apr 10earnings−4.4%+5.3%
STZ +5.3%NASDAQ −4.4%
−10%−5%0+5%Apr 8Apr 17report 4:55pm ETearnings−3.6%+6.3%
−10%−5%0+5%Apr 8Apr 17earnings−3.6%+6.3%
STZ +6.3%S&P 500 −3.6%
−12%−6%0+6%Apr 8Apr 17report 4:55pm ETearnings−4.9%+6.3%
−12%−6%0+6%Apr 8Apr 17earnings−4.9%+6.3%
STZ +6.3%NASDAQ −4.9%
+0.74%
Day of report
+0.48%
Next session
+1.02%
One week
+1.58%
30 days

S&P 500 over the same 30 days: +11.87%.

Did STZ Beat Earnings? Q4 2025 Results

Constellation Brands closed fiscal year 2025 on a strategically turbulent but operationally resilient note, delivering Q4 comparable EPS of $2.63 against a consensus estimate of $2.27, a beat of 15.86%, while revenue of $2.16 billion edged past the $2.14 billion estimate by 1.22%. The headline numbers masked a far more complex story underneath: a GAAP net loss of $375.30 million for the quarter, driven by $3.30 billion in non-cash impairments tied to the Wine and Spirits segment, a business the company is now dramatically reshaping through the $900.00 million divestiture of mainstream brands including Woodbridge and Meiomi to The Wine Group. The Beer Business, which logged its 15th consecutive year of volume growth and full-year net sales of $8.54 billion, remained the core engine. Looking ahead, management guided fiscal 2026 comparable EPS to $12.60 to $12.90, absorbing tariff headwinds and restructuring costs, while projecting cumulative free cash flow exceeding $5.00 billion through fiscal 2028.

Key Takeaways
  • Beer Business 15th consecutive year of volume growth with shipment volume growth of over 3% for full year
  • Modelo Especial depletion growth of nearly 5% and Pacifico growth of nearly 20% for full year
  • Beer operating margin expanded 180 basis points to 39.7% driven by favorable pricing and cost savings
  • Approximately $220 million of cost savings delivered in FY25 through supply chain efficiencies
  • Strong operating cash flow of $3.2 billion, an increase of 13%, and free cash flow of $1.9 billion, an increase of 28%
  • Beer Business was #1 dollar sales share gainer across all of beverage alcohol in Circana channels, adding 1.1 dollar share points

“Despite a softer consumer demand backdrop in fiscal 2025, we delivered another year of Enterprise net sales growth and substantial comparable operating margin improvement, as well as double-digit comparable EPS growth. These results allowed us to once again be recognized as the #1 growth leader among large CPG companies in calendar year 2024 in Circana's annual U.S. CPG Growth Leaders ranking. Looking ahead, in a tough socioeconomic environment we are taking decisive actions designed to continue to support our industry-leading Beer Business, reset our cost base, and redefine our portfolio. We remain focused on: driving distribution gains, disciplined innovation, and increased marketing investments in our Beer Business; enhancing efficiency across our enterprise; and repositioning our Wine and Spirits Business to be entirely in higher growth, higher-end segments.”

Constellation Brands CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2026, Constellation Brands issued reported EPS outlook of $12.33-$12.63 and comparable EPS outlook of $12.60-$12.90, inclusive of tariff impacts from the U.S. (April 2, 2025) and Canadian (March 4, 2025) governments, the Wine Divestitures Transaction, and restructuring actions. FY26 guidance includes: Enterprise organic net sales growth (decline) of (2)% to 1%; Beer net sales growth of 0% to 3%; operating cash flow of $2.7-$2.8 billion; capital expenditures of approximately $1.2 billion (including ~$1.0 billion for Mexico beer operations); and free cash flow of $1.5-$1.6 billion. Interest expense expected at approximately $385 million. Comparable tax rate of approximately 18%. Weighted average diluted shares outstanding of approximately 176 million. For FY27, the company expects EPS growth of mid-single digit to low-double digit, and for FY28, low-single digit to mid-single digit. Cumulative FY26-FY28 operating cash flow expected over $6 billion (approximately $9 billion) and free cash flow over $5 billion. Beer Business expected to deliver 2%-4% net sales growth and 39%-40% operating margins in FY27-FY28. Wine and Spirits expected to deliver flat to 3% net sales growth and 22%-24% operating margins in FY27-FY28. Enterprise-wide restructuring expected to generate over $200 million in net annualized cost savings by FY28.

STZ YoY Financials

Revenue$2.2B
Gross Profit$1.1B
Operating Income$-150,300,000
Net Income$-375,300,000

STZ Revenue by Segment

Beer$1.7B+0.0%
Wine$410.0M+10.0%
Wine and Spirits
Spirits$49.8M−23.0%

Figures from SEC filings and company reports. Not investment advice.