Constellation Brands, Inc. Revenue & Financials

Constellation Brands reported FY2025 net sales of $10.21 billion, up 2% from $9.96 billion in FY2024, with comparable operating income of $3.47 billion, up 7%, and comparable net income attributable to CBI of $2.51 billion, up 10%. However, reported GAAP results were severely distorted by one-time charges: reported operating income was $355 million, down 89%, and reported net loss attributable to CBI was $81 million compared to net income of $1.73 billion in FY2024. The divergence between reported and comparable results is explained by $3.12 billion in comparable adjustments, including $2.80 billion in goodwill and intangible asset impairments related to the wine and spirits business, $478 million in assets held for sale impairment, $90 million in restructuring and other strategic business reconfiguration costs, and $49 million in comparable adjustments to income from unconsolidated investments including Canopy-related losses. The Beer Business drove all organic growth: net sales of $8.54 billion, up 5%, with operating income of $3.39 billion, up 10%, and operating margin expansion to 39.7%. The Wine and Spirits Business declined: net sales of $1.67 billion, down 7%, with operating income of $325 million, down 18%, and operating margin compression to 19.5%. Cash flow remained robust: net cash provided by operating activities totaled $3.15 billion, up 13% from $2.78 billion in FY2024. Free cash flow was $1.94 billion, up 28% from $1.51 billion. Capital expenditures totaled $1.21 billion, down from $1.27 billion. The company returned $1.83 billion to shareholders: $1.12 billion in share repurchases and $732 million in dividends. Total debt stood at approximately $11.2 billion with a debt-to-equity ratio of 133.57%, though the net leverage ratio improved to 2.9x, below the 3.0x target. Interest expense was $411 million, down from $436 million. The effective tax rate on a comparable basis was approximately 19%. FY2026 guidance calls for reported EPS of $12.33-$12.63 and comparable EPS of $12.60-$12.90, with beer net sales growth of 6-8% and operating income growth of 8-10%, while wine and spirits organic net sales are expected to decline 15-17% due to divestitures.