NYSE$STZ

Constellation Brands Inc · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Constellation Brands' Q2 2025 performance was marked by solid beer business growth and strategic capital allocation.

Constellation Brands reported a mixed Q2 2025, with strong performance in the beer business offsetting challenges in wine and spirits. The company achieved its net leverage ratio target and returned ~$250 million to shareholders through share repurchases. Overall sales increased by 3%, driven by beer, while the company faced a net loss due to a goodwill impairment in the wine and spirits segment.

  • Generated reported EPS of $(6.59), inclusive of non-cash goodwill impairment loss for the Wine and Spirits business of $2.25 billion, and comparable EPS of $4.32.
  • Beer Business dollar sales growth outperformed total beverage industry and combined beverage alcohol categories in Circana tracked channels; disciplined operational efficiency and cost management initiatives enabled incremental marketing investments launched in Q3 of fiscal 2025.
  • Wine and Spirits Business continues to advance commercial and operational actions expected to drive sequential net sales and operating income improvements in Q3 and Q4 fiscal 2025.
  • Generated year-to-date operating cash flow of $1.9 billion, a 15% increase, and free cash flow of $1.2 billion, a 12% increase.

Headline financials

Total Revenue

$2.92B

Previous: $2.84B+2.9%
EPS

-$6.59

Previous: $3.70-278.1%
Wine and Spirits Shipments

1.1M

Previous: 6.1M-82.0%
Beer Operating Margin

0.4%

No prior period
Beer Shipments

9.1M

Previous: 123.0M-92.6%
Wine and Spirits Operating Margin

0.2%

No prior period
Capital Expenditures

-$703M

Previous: -$305M-130.5%
Free Cash Flow

-$1.9B

Previous: $385M-594.1%
Net Income

-$1.2B

Previous: $690M-273.8%
Operating Income

-$1.23B

Previous: $979M-225.6%
Gross Profit

$1.51B

Previous: $1.45B+4.3%
Cash & Equivalents

$64.6M

Previous: $83.3M-22.4%
Total Assets

$23.1B

Previous: $24.9B-7.4%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.92B

Q2 2025+2.9%vs Q2 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, anticipating net sales growth of 4-6% and comparable operating income growth of 8-9%. The company expects reported EPS to be $4.05 - $4.25 and comparable EPS to be $13.60 - $13.80.

Tailwinds

  • Net sales growth of 4 - 6% for the enterprise.
  • Beer net sales growth of 6 - 8%.
  • Comparable operating income growth of 8 - 9% for the enterprise.
  • Operating cash flow target of $2.8 - $3.0 billion.
  • Free cash flow projection of $1.4 - $1.5 billion.

Headwinds

  • Wine and Spirits net sales decline of 4 - 6%.
  • Wine and Spirits operating income decline of 16 - 18%.
  • Reported operating income decline of (63)% - (62)%.
  • Corporate expense of $260 million.
  • Interest expense, net of $430 million.

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 Q2 2025

Historical avgQ2 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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