CONSTELLATION BRANDS (STZ) Company Report

On October 16, 2025, Constellation submitted notice to terminate its $500 million delayed draw term loan Credit Agreement with Bank of America and other lenders, effective October 21, 2025; no borrowings were outstanding and no termination penalties were incurred.
On October 17, 2025, the company entered into Supplemental Indenture No. 36 to issue $500 million aggregate principal of 4.950% Senior Notes due 2035 at 99.716% of par.
The Notes pay interest semi-annually on May 1 and November 1 (commencing May 1, 2026) and mature on November 1, 2035; they are redeemable under customary terms in the indenture.

Oct 17, 2025, 8:05 PM

8-K

Constellation Brands announces $500M senior notes offering

STZ

Debt Issuance

On October 15, 2025, Constellation Brands entered into an underwriting agreement to sell $500 million aggregate principal of 4.950% Senior Notes due 2035 at a public offering price of 99.716%.
The offering is scheduled to close on October 17, 2025, with net proceeds earmarked for general corporate purposes, including redeeming $500 million of 4.400% Senior Notes due 2025.
The Notes will bear interest at 4.950% per annum, payable semi-annually on May 1 and November 1, and mature on November 1, 2035.
The issuance is made under the Company’s April 17, 2012 indenture, supplemented by Supplemental Indenture No. 36 dated October 17, 2025, with the legal opinion filed as Exhibit 5.1.

Oct 16, 2025, 9:05 PM

8-K

Constellation Brands reports Q2 FY26 volume and margin pressures

STZ

Earnings

Guidance Update

Demand Weakening

Macroeconomic headwinds driven by consumer concerns weigh on beer volume growth; 80% of consumers express socioeconomic worries, with Hispanic consumers notably constrained; brand loyalty remains strong, with Gen Z share twice the industry average.
FY 2026 CAPEX guidance maintained despite a lowered top-line outlook due to committed long-lead investments; potential adjustments beyond FY 2026 will be disclosed with FY 2027 guidance.
Beer operating margins face headwinds of 100 bps from fixed costs and tariffs plus 60 bps for elevated marketing spend; seasonal maintenance and lower H2 volumes will step down margins, which remain best-in-class.
Distributor beer inventories were rebalanced in Q2 after summer overshipments, returning to historical norms; shipments and depletions are expected to track closely in H2.

Oct 7, 2025, 12:00 PM

Transcript

Constellation Brands reports Q2 FY 2026 results

STZ

Earnings

Guidance Update

Share Buyback

Generated $2.65 reported EPS (+140% YoY) and $3.63 comparable EPS (–16% YoY) on $2.481 B net sales (–15% YoY) and $874 M operating income (+171% reported, –13% comparable)
Beer Business led U.S. beer category with #1 dollar share gains, outpacing beverage alcohol share by 1 pp and beer share by 2 pp in tracked channels
Wine and Spirits net sales fell 65% to $136 M with an operating loss of $19.8 M, yet outperformed the higher-end wine segment in U.S. depletion growth
Delivered YTD operating cash flow of $1.5 B and free cash flow of $1.1 B, repurchased $604 M of shares, declared a $1.02 quarterly dividend, and updated FY 2026 reported EPS guidance to $9.86–$10.16 (comparable $11.30–$11.60)

Oct 6, 2025, 8:08 PM

8-K

Constellation Brands sees stagnant growth and valuation pressure

STZ

Demand Weakening

Profit Warning

Management cites lower demand from Hispanic consumers due to fear of ICE at points of sale.
Sales are no longer growing, yet the stock trades at 12× earnings versus Molson Coors at 9× earnings (market caps ~$26 B vs. ~$9.9 B), implying potential overvaluation.
The beer sector is hindered by tariffs and consumer hesitancy, notably affecting Constellation’s core Modelo portfolio.
Investor interest based on rumored Berkshire Hathaway support may be misplaced, per commentary on strategic missteps.

Sep 3, 2025, 2:27 PM

CNBC Television

Constellation Brands reports Q1 FY2026 results

STZ

Earnings

Guidance Update

Share Buyback

Reported Q1 FY26 net sales of $2.515 B (−6% reported, −4% organic) and EPS of $2.90 (−39%); comparable EPS was $3.22 (−10%).
Beer segment delivered net sales of $2.235 B (−2%) and operating income of $873 M (−5%) in Q1 FY26.
Wine & Spirits net sales declined to $280.5 M (−28% reported, −21% organic) with an operating loss of $6 M (−110%).
Maintained FY26 guidance: reported EPS $12.07–$12.37, comparable EPS $12.60–$12.90; beer net sales flat to +3%; Wine & Spirits organic net sales down 17–20%.

Jul 2, 2025, 2:30 PM

Presentation

Constellation Brands reports Q1 FY 2026 results

STZ

Earnings

Guidance Update

Share Buyback

Proactive address of consumer demand headwinds amid socioeconomic factors, with Q1 net sales of $2.515 billion (−6%) and diluted EPS of $2.90 (−39%; comparable EPS $3.22, −10%).
Beer business achieved leading dollar share gains in U.S. tracked channels, outpacing the total beverage alcohol category by over 2 percentage points.
Completed divestiture of mainstream wine brands in June, refocusing Wine & Spirits on higher-growth, higher-margin premium portfolio.
Generated operating cash flow of $637 million and free cash flow of $444 million, returned $381 million in share repurchases, and declared a $1.02 per-share dividend.
Updated FY 2026 reported EPS guidance to $12.07–$12.37 and maintained comparable EPS outlook of $12.60–$12.90, with operating cash flow target of $2.7–$2.8 billion.

Jul 1, 2025, 12:00 AM

8-K

Constellation Energy to Restart Three Mile Island Plant by 2027

STZ

New Projects/Investments

The Three Mile Island nuclear plant in Pennsylvania, renamed the Crane Clean Energy Center, is scheduled to restart operations by 2027, a year ahead of prior plans.
The project (Unit 1 only) will supply over 800 MW of zero-emission power to the PJM Interconnection grid, enhancing regional energy stability.
Milestones achieved include hiring 64% of required full-time staff, training new licensed reactor operators, purchasing critical equipment, and receiving early PJM interconnection approval.
Backed by Microsoft’s AI optimization and supported by the 2022 Inflation Reduction Act’s nuclear production tax credits, the restart underscores a broader U.S. resurgence in nuclear energy.

Jun 25, 2025, 4:39 PM

Bloomberg

Constellation Brands Highlights Consumer Trends and Strategic Initiatives

STZ

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Consumer behavior challenges were a key focus, with discussions highlighting cautious spending trends among Hispanic and non-Hispanic consumers driven by inflation and related concerns.
Strategic initiatives and product innovation were emphasized, including enhanced price pack architecture, new SKU introductions such as Corona Sun Brew and Corona Non-Alc, and leveraging a lean portfolio of about 60 SKUs.
The company reaffirmed a 39-40% beer margin target and detailed cost-saving measures, projecting robust cash flow improvements with operating cash flow estimated at $9B and free cash flow around $6B by FY28.
There was a strong focus on marketing and shelf space strategies, aiming to boost brand support for Modelo, Corona, and Pacifico through targeted advertising and improved distributor relationships.

Jun 4, 2025, 2:15 AM

Constellation Brands Special Call on Beer Business Outlook and Capital Allocation

STZ

Guidance Update

Share Buyback

Debt Issuance

Management attributed the recent beer growth slowdown to non-structural factors—notably challenging macroeconomic conditions and changing Hispanic consumer behavior—while expressing confidence in brand health and long‐term recovery.
Executives detailed plans to maintain best-in-class operating margins through modest volume growth, pricing actions, and cost efficiencies despite headwinds like tariffs and depreciation.
The call highlighted initiatives to expand distribution and introduce more SKUs across key brands such as Modelo Especial, Corona Extra, and Pacifico to drive future growth.
Capital allocation remains disciplined with a target leverage of 3x and an opportunistic share buyback program recently authorized for $4 billion through FY '28.

May 13, 2025, 3:41 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for CONSTELLATION BRANDS.

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