CONSTELLATION BRANDS (STZ) Company Report

Q3 beer operating margins outperformed expectations despite volume declines, aided by cost-savings initiatives, pricing actions, and a one-time depreciation timing benefit; however, Q4 margins are expected to face headwinds from seasonality (20% of annual volume), rising depreciation, higher aluminum tariffs, and timing of tariff recognition.
Full-year guidance for FY2026 remains unchanged; outlook for FY2027 and FY2028 beer margins (previously 39–40%) will be updated in April, reflecting the worsened macroeconomic environment since last April’s guidance.
Depletions declined mid-single digits year-over-year but were bolstered by strong on-premise performance (Modelo draft now #2) and solid holiday results, with shipments and depletions expected to align in Q4.
Commitment to expand capacity by 7 million hectoliters through FY2028 remains, with modular brewery builds on long-lead equipment already committed; CapEx will be managed against volume forecasts and may be deferred where possible.

7 days ago

Transcript

Constellation Brands reports Q3 FY2026 results

STZ

Earnings

Guidance Update

Q3 beer operating margins outperformed expectations despite volume declines, driven by cost-savings initiatives, favorable pricing actions, and a depreciation timing benefit year-over-year.
Q4 margins are expected to face headwinds from seasonal low demand (20% of annual volume), increased depreciation expense, higher aluminum-related tariffs due to mix shift and tariff accrual timing, plus the timing shift of some expenses from Q3.
Full-year guidance was maintained; updated FY2027–28 beer margin targets will be provided in the April earnings call, reflecting current macroeconomic conditions.
Beer portfolio distribution expanded to 49 of 50 states, with significant gains for Pacifico and Victoria; Modelo still trails peers by 20% fewer distribution points, indicating further upside potential.
Confirmed plan to add 7 million hectoliters of brewing capacity by FY2028 via modular expansions; long-lead equipment spend is committed but can be deferred based on demand trends.

7 days ago

Transcript

Constellation Brands announces Q3 Fiscal 2026 results

STZ

Earnings

Q3 beer operating margins outperformed expectations, driven by cost-savings initiatives, favorable pricing actions and a depreciation timing benefit; Q4 margins are expected to face headwinds from seasonal volume leverage (~20% of annual volume), rising depreciation, higher aluminum tariffs and tariff timing effects.
Beer distribution grew mid-single digits, with depletions down roughly 3% versus broader industry declines, fueled by on-premise gains such as Modelo Draft rising to #2 on draft and strong Pacifico performance.
The company reaffirmed plans to add 7 million hectoliters of modular brewery capacity by FY 2028; FY 2026 CapEx reflects committed long-lead equipment investments, with flexibility to defer additional spend as needed.
Pricing for the beer portfolio is projected at 1–2%, supported by adjustments to Modelo Oro and Corona Premier and the rollout of seven-ounce formats to match consumer price sensitivities.

7 days ago

Transcript

Constellation Brands reports Q3 FY 2026 results

STZ

Earnings

Guidance Update

Share Buyback

Generated reported EPS of $2.88 and comparable EPS of $3.06, on net sales of $2.223 billion (10% reported decline)
Beer business gained dollar and volume share in U.S. tracked channels (outpacing total beverage alcohol by ~0.5 ppt and beer category by ~1 ppt); Wine & Spirits continued to outperform the higher-end wine segment
Year-to-date operating cash flow reached $2.1 billion, free cash flow was $1.45 billion, and $824 million of shares repurchased through December 2025
Updated fiscal 2026 reported EPS guidance to $9.72–$10.02 and affirmed comparable EPS outlook of $11.30–$11.60, with operating cash flow target of $2.5–$2.6 billion

Jan 7, 2026, 9:06 PM

8-K

Constellation Brands ends delayed draw term loan facility and issues $500 million 4.950% notes due 2035

STZ

Debt Issuance

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

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Earnings Transcripts

Quarterly earnings call transcripts for CONSTELLATION BRANDS.

Q3 2026

Jan 8, 2026

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Q2 2026

Oct 7, 2025

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Q1 2026

Jul 2, 2025

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CONSTELLATION BRANDS (STZ)

Analyst Earnings Quarterly Reports

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Executives

William A. Newlands

Garth Hankinson

James A. Sabia, Jr.

James O. Bourdeau

Samuel J. Glaetzer

Board Members

Christopher J. Baldwin

Christy Clark

Daniel J. McCarthy

Ernesto M. Hernández

Jennifer M. Daniels

José Manuel Madero Garza

Luca Zaramella

Nicholas I. Fink

Richard Sands

Robert Sands

William Giles

Analyst Coverage

Bonnie Herzog

Dara Mohsenian

Nik Modi

Andrea Teixeira

Filippo Falorni

Kaumil Gajrawala

Lauren Lieberman

Carlos Laboy

Christopher Carey

Kevin Grundy

Nadine Sarwat

Peter Grom

Robert Moskow

Bill Kirk

Bryan Spillane

Carmel Gajrawala

Chris Carey

Chris Pitcher

Christopher Barnes

Drew Levine

Filippo Forni

Michael Lavery

Peter Galbo

Robert Ottenstein

Rob Ottenstein

Stephen Robert Powers

Victor

William Kirk

Andrew Strelzik

Gerald Pascarelli

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Modelo Maker's Sales Slump as Hispanic Consumers Pull Back

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