NYSE$STZ

Constellation Brands Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Constellation Brands had a solid start to fiscal 2025, driven by strong volume growth in the beer business and operating margin expansion. The company returned over $240 million to shareholders through share repurchases in June 2024.

Constellation Brands reported a 6% increase in net sales and a 23% increase in operating income. The beer business achieved strong high single-digit net sales growth and double-digit operating income growth. The wine and spirits business is implementing actions to improve net sales and operating income.

  • Generated reported EPS of $4.78 and comparable EPS of $3.57.
  • Beer Business achieved strong high single-digit net sales growth and double-digit operating income growth primarily driven by continued volume growth and cost savings initiatives.
  • Wine and Spirits Business initiates commercial and operational actions expected to drive net sales and operating income improvements and affirms fiscal 2025 outlook.
  • Generated first quarter operating cash flow of $691 million, a 4% increase, and free cash flow of $315 million, a 19% decrease, driven by brewery capacity investments.

Headline financials

Total Revenue

$2.66B

Previous: $2.51B+5.8%
EPS

$4.78

Previous: $2.91+64.3%
Wine and Spirits Shipments

5.6M

Previous: 5.9M-5.1%
Beer Operating Margin

40.6%

No prior period
Beer Shipments

115.1M

Previous: 107.0M+7.6%
Wine and Spirits Operating Margin

15.3%

No prior period
Capital Expenditures

-$375M

Previous: -$277M-35.5%
Free Cash Flow

$502M

Previous: -$141M+455.6%
Net Income

$877M

Previous: $136M+545.3%
Operating Income

$942M

Previous: $765M+23.1%
Gross Profit

$1.4B

Previous: $1.26B+11.6%
Cash & Equivalents

$73.8M

Previous: $193M-61.7%
Total Assets

$26.1B

Previous: $24.8B+5.3%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.66B

Q1 2025+5.8%vs Q1 2024
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Constellation Brands · $2.43B total across 2 segments · Q1 2027

  • Beer
    $2.28B
  • Wine and Spirits
    $149M

Forward guidance

Constellation Brands provided guidance for fiscal year 2025, including net sales growth of 6-7%, beer net sales growth of 7-9%, and wine and spirits net sales decline of 0.5% to growth of 0.5%.

Tailwinds

  • Enterprise: net sales growth of 6 - 7%
  • Beer: net sales growth of 7 - 9%
  • Enterprise: operating income growth: reported of 10 - 12% and comparable of 8 - 10%
  • Beer: operating income growth of 10 - 12%
  • Operating cash flow: $2.8 - $3.0 billion

Headwinds

  • Wine and Spirits: net sales decline of 0.5% to growth of 0.5%
  • Wine and Spirits: operating income decline of 9 - 11%
  • Corporate expense: $260 million
  • Interest expense, net: $445 - $455 million
  • Capital expenditures: $1.4 - $1.5 billion, including approximately $1.2 billion targeted for Mexico beer operations activities

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+0.4%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+10.8%

Q3 2014

Best reaction

-16.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-0.1%+9.5%-1.6%
Q3 2026+2.5%+5.7%+11.1%
Q2 2026+1.1%+1.9%-7.8%
Q1 2026+1.3%+1.2%+1.3%
Q4 2025+0.7%+0.3%+3.6%
Q3 2025-16.8%-14.9%-22.7%
Q2 2025-0.8%-4.3%-9.8%
Q1 2025-2.3%+1.1%-4.3%
Q4 2024+2.0%-1.7%-0.4%
Q3 2024+2.5%+5.0%+3.8%
Q2 2024-2.8%-5.3%-2.7%
Q1 2024-0.3%+0.3%+10.4%
Q4 2023+2.9%+2.9%+2.4%
Q3 2023-8.3%-5.3%+1.4%
Q2 2023-2.1%-6.8%+3.1%
Q1 2023-5.1%-4.1%+0.3%
Q4 2022+5.3%+7.5%+7.4%
Q3 2022-3.9%-3.0%-6.8%
Q2 2022-0.7%+3.1%+3.0%
Q1 2022+2.0%+0.9%-2.1%
Q4 2021-5.1%-4.2%+2.0%
Q3 2021+5.5%+4.6%+5.1%
Q2 2021-1.6%-2.1%-11.9%
Q1 2021+6.7%+6.7%+3.8%
Q4 2020-3.4%+9.3%+18.0%
Q3 2020-0.1%-1.1%+4.9%
Q2 2020-6.3%-8.4%-7.6%
Q1 2020+4.2%+6.2%+8.3%
Q4 2019+7.6%+6.2%+17.6%
Q3 2019-7.2%-6.7%+1.7%
Q2 2019+5.9%+7.4%-4.5%
Q1 2019-7.1%-7.5%-7.9%
Q4 2018+3.5%+2.1%+6.2%
Q3 2018-4.0%-2.8%-4.4%
Q2 2018+4.4%+3.4%+7.3%
Q1 2018+5.5%+4.4%+5.9%
Q4 2017+5.6%+5.5%+10.6%
Q3 2017-5.4%-5.5%-5.6%
Q2 2017+3.1%+3.2%-3.8%
Q1 2017+2.6%+4.1%+3.3%
Q4 2016+4.0%
Q3 2016+2.7%
Q2 2016+4.1%
Q1 2016+0.9%
Q4 2015+2.1%
Q3 2015+4.2%
Q2 2015+1.9%
Q1 2015+3.1%
Q4 2014-1.7%
Q3 2014+10.8%
Q2 2014+6.4%
Q1 2014-5.1%
Q4 2013+1.6%
Q3 2013-1.1%
Q2 2013+1.2%
Q1 2013-0.4%
Q4 2012-0.3%
Q3 2012+5.3%
Q2 2012-2.7%
Q1 2012-3.4%
Q4 2011+0.8%
Q3 2010-1.3%
Q2 2010-0.2%
Q1 2010+1.8%
Q4 2009+0.4%

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