NYSE$BF-A

Brown Forman Corporation · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Brown-Forman reported mixed results for Q2 2025, with net sales decreasing slightly but EPS increasing, and reaffirmed its full-year growth outlook.

Brown-Forman reported a slight decrease in net sales for the second quarter of fiscal 2025, but diluted earnings per share increased. The company reaffirmed its full-year growth outlook, anticipating a return to growth driven by international markets and normalizing inventory trends.

  • Second quarter net sales decreased by 1% to $1.1 billion, but increased 3% on an organic basis.
  • Second quarter operating income increased 1% to $341 million, with a 5% increase on an organic basis.
  • Diluted earnings per share for the second quarter increased 9% to $0.55.
  • The company reaffirms its fiscal 2025 outlook, expecting organic net sales and operating income to grow in the 2% to 4% range.

Headline financials

Total Revenue

$1.1B

Previous: $1.11B-1.1%
EPS

$0.55

Previous: $0.50+10.0%
Gross Margin

59.1%

Previous: 60.6%-2.5%
Operating Margin

31.1%

Previous: 30.6%+1.6%
Effective Tax Rate

17.6%

Previous: 22.0%-20.0%
Cash Dividend Per Share

$0.22

Previous: $0.21+6.0%
Capital Expenditures

-$72M

Previous: -$79M+8.9%
Free Cash Flow

$57M

Previous: $18M+216.7%
Net Income

$258M

Previous: $242M+6.6%
Operating Income

$341M

Previous: $339M+0.6%
Gross Profit

$646M

Previous: $671M-3.7%
Cash & Equivalents

$416M

Previous: $373M+11.5%
Total Assets

$8.33B

Previous: $8.12B+2.7%
Stock-Based Comp

$9M

Previous: $7M+28.6%

Revenue & EPS history

Brown-Forman · Revenue · Quarterly

$1.1B

Q2 2025-1.1%vs Q2 2024
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Forward guidance

Brown-Forman anticipates a return to growth for organic net sales and organic operating income in fiscal 2025, driven by gains in international markets and the benefit of normalizing inventory trends. This outlook is tempered by the belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment.

Tailwinds

  • Organic net sales growth in the 2% to 4% range.
  • Organic operating income growth in the 2% to 4% range.
  • Gains in international markets.
  • Benefit of normalizing inventory trends.
  • An effective tax rate to be in the range of approximately 21% to 23%.

Headwinds

  • Global macroeconomic uncertainties.
  • Geopolitical uncertainties.
  • Challenging operating environment.
  • Potential impact of distributor inventories.
  • Fluctuations in foreign currency exchange rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.4%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-3.2%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+10.4%

Q1 2021

Best reaction

-9.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-5.7%-10.8%-4.9%
Q2 2026+0.1%+0.1%-11.2%
Q1 2026-4.8%-3.9%-13.1%
Q4 2025+0.0%-0.8%+6.9%
Q3 2025+10.2%+14.6%-2.4%
Q2 2025+8.8%+10.7%-11.0%
Q1 2025+1.1%+1.0%+4.6%
Q4 2024-4.0%-6.4%-5.5%
Q3 2024-9.1%-8.1%-14.2%
Q2 2024-9.0%-6.1%-7.3%
Q1 2024-4.4%-3.0%-17.4%
Q4 2023+5.2%+2.3%+5.6%
Q3 2023-6.2%-5.9%-4.1%
Q2 2023-7.4%-6.4%-12.3%
Q1 2023-1.3%-2.1%-5.6%
Q4 2022+3.2%-0.1%+8.9%
Q3 2022+7.5%-2.0%+5.4%
Q2 2022-4.1%-2.1%-7.7%
Q1 2022+0.5%+1.0%-4.1%
Q4 2021-5.0%-4.4%-5.6%
Q3 2021-4.7%-3.2%-4.3%
Q2 2021+0.3%+4.1%-6.2%
Q1 2021+10.4%+10.8%+5.3%
Q4 2020-0.0%-3.5%-4.4%
Q3 2020-4.1%-11.3%-13.7%
Q2 2020-6.3%-6.8%-0.2%
Q1 2020-0.1%-0.8%+2.7%
Q4 2019+8.5%+10.4%+11.6%
Q3 2019-1.7%-1.3%+2.0%
Q2 2019-1.3%-2.1%-1.3%
Q1 2019+0.4%+0.3%-3.2%
Q4 2018-8.0%-6.7%-6.2%
Q3 2018-4.8%-3.5%-4.4%
Q2 2018+6.1%+4.9%+7.5%
Q1 2018+3.8%+3.8%+4.0%
Q4 2017-5.7%-6.1%-9.5%
Q3 2017-2.9%-3.7%-5.3%
Q2 2017+1.4%+1.1%-1.4%
Q1 2017-4.6%-4.6%-6.8%
Q4 2016+2.1%-0.2%+0.3%
Q3 2016-1.4%
Q2 2016+1.7%
Q1 2016+0.5%
Q4 2015-0.5%
Q3 2015-0.5%
Q2 2015+2.2%
Q1 2015-2.4%
Q4 2014+2.4%
Q3 2013+1.6%
Q3 2014+4.6%
Q2 2014+0.3%
Q1 2014-1.8%
Q4 2013-0.9%
Q2 2013-0.6%
Q1 2013+2.6%
Q2 2012-1.4%
Q4 2012+4.4%
Q3 2012-0.2%
Q1 2012-3.6%
Q4 2009-0.1%
Q2 2011-0.1%
Q4 2010-0.1%
Q4 2011-0.1%
Q3 2011-0.8%
Q3 2010-0.8%
Q1 2011+1.9%
Q1 2010+1.9%
Q2 2010+1.9%

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