Delivers EPS Growth Driven by Net Sales and Business Division Operating Income
Exhibit 99.1 Delivers EPS Growth Driven by Net Sales and Business Division Operating Income Growth
Beer Business Accelerates Category Leading Share Gains Across U.S. Tracked Channels
Returns an Additional $400 Million to Shareholders Through Share Repurchases and Dividends
Net Sales Operating EPS Income (Loss) Second QuarterFiscal 2027 Financial Highlights | in millions, except per share data Reported $2,633 $805 $3.32 % Change 6% -8% 25% Comparable $2,633 $897 $3.74 % Change 6% 1% 3%
Note: A list of defined terms, including definitions of reported, comparable, and organic, as well as reconciliations of non-GAAP financial measures are contained elsewhere in this release. Comparable and organic amounts are non-GAAP financial measures.
• Beer Business delivers both net sales and operating income growth of 5% and 1%, respectively, while leading the category in dollar and volume share gains, outperforming the total beer category by 4 percentage points in year-over-year dollar and volume sales across Circana U.S. tracked channels
• Wine and Spirits Business delivers net sales growth of 17% and depletions growth of 10.2%, outperforming the total wine and spirits category in both dollar and volume sales in Circana U.S. tracked channels as the wine portfolio was the #3 dollar share gainer in the total wine category
• Generates year-to-date operating cash flow of $1.5 billion and free cash flow of $1.1 billion, a decrease of 1% and an increase of 4%, respectively
• Updates fiscal 2027 reported EPS outlook to $11.85 - $12.55, and reaffirms comparable EPS outlook of $11.20 - $11.90, operating cash flow target of $2.4 - $2.5 billion, and free cash flow target of $1.6 - $1.7 billion
“During the second quarter, our portfolio of “Through the iconic brands first half of continued to fiscal 2027, our resonate with strong cash flow consumers. We generation have sharpened enabled us to our execution continue and increased executing our investment disciplined and across the balanced capital business, and allocation are beginning to priorities. We see early maintained our returns through target comparable accelerating net leverage dollar and ratio of ~3.0x, volume share returned more gains in both than $800 million our Beer and to shareholders Wine & Spirits through share businesses repurchases and relative to the dividends, and first quarter. continued to As a result, we invest in our were the #1 business through dollar share increased gainer in beverage alcohol during the second quarter. Looking ahead, we brand marketing remain focused support. As we on building on look to the this momentum second half of by expanding the year, we our reach remain committed across more to supporting consumers and long-term occasions, growth, while investing maintaining behind the financial brands and flexibility, and capabilities returning that will capital to support our shareholders.” next phase of growth.” Nicholas Fink - Garth Hankinson President & CEO - Executive Vice President & CFO
• Operating margin decreased 160 bps to 39.0% as lower tariff expenses and favorable fixed cost absorption were more than offset by increased marketing investment and other SG&A spend.
• Depletions decreased 0.6% as declines for Modelo Especial of approximately 2% and Corona Extra of approximately 5% were partially offset by growth from Pacifico, Victoria, and the Modelo Chelada brands of approximately 19%, 15%, and 5%, respectively. One additional sell day during the quarter was largely offset by a shift in the timing of the Labor Day holiday, resulting in minimal impact on underlying depletion trends.
• Our Beer Business ranked as the #1 dollar and volume share gainer in Circana U.S. tracked channels and had 5 of the top-15 dollar share gaining brands across the entire U.S. beer category:
◦ Modelo Especial maintained its position as the #1 brand by dollar sales and was the #3 dollar share gainer. Within the brand family, Modelo Chelada Limón y Sal was the #6 dollar share gainer;
◦ Corona Extra remained a top-five brand by dollar sales, while Corona Familiar was the #14 dollar share gainer;
◦ Pacifico and Victoria were the #2 and #10 dollar share gainers, respectively, and Pacifico became a top-10 brand by dollar sales. Note: totals may not sum due to rounding
Subsequent to the quarter, we acquired SpikedAde, a differentiated, consumer-led spirit-based RTD brand competing in the emerging “Ade” segment. The addition of SpikedAde to our portfolio of iconic brands is consistent with our strategy to selectively expand into new demand spaces aimed at sustainable consumer trends, strengthens our position in the fast-growing RTD category, and remains aligned with our disciplined capital allocation priorities. The transaction included a $75 million payment at close for 100% ownership of the business, as well as additional contingent consideration of up to $278 million payable over five years based on the future performance of the SpikedAde business. The acquisition does not impact our fiscal 2027 outlook below.
• Operating margin improved to 3.8% driven by favorability in COGS from recoveries of U.S. tariffs and savings across marketing and other SG&A from our optimization and restructuring initiatives.
• Depletions increased 10.2% driven by growth from Kim Crawford and Mi CAMPO of approximately 11% and 51%, respectively.
• Across Circana U.S. tracked channels, our wine and spirits portfolio outpaced the total wine and spirits category in both dollar and volume sales, as our wine portfolio was the #3 dollar share gainer in the total wine category. Note: totals may not sum due to rounding
Enterpr… and Wine and Spirits growth (declin… net sales assumpt… for fiscal 2027 exclude $142 million for the March 1, 2025 to June 1, 2025, period that are no longer part of year-ov… results followi… the 2025 Wine Divesti… The table sets forth managem… current EPS expecta… for fiscal 2027 compared to fiscal 2026 actual results. Reported Comparab… FY27 FY26 FY27 FY26 Estimate Actual Estimate Actual Fiscal Year $11.85 - $11.20 - Ending $12.55 $9.61 $11.90 $11.82 February 28 Fiscal 2027 Guidance Assumpt… •Enterp… organic net sales growth (declin… of (1)% - 1% ◦Beer: net sales growth (declin… of (1)% - 1% •Tax rate: ◦Wine reported and ~12%; Spirits: comparable organic ~20% net •Operating sales cash flow: growth $2.4 - (declin… $2.5 of (1)% billion - 1% •Capital •Enterp… expenditu… operati… ~$800 margin: million reported •Free cash of 31% - flow: $1.6 32%; - $1.7 compara… billion of 32% - 33% ◦Beer: operati… margin of 37% - 38% ◦Wine and Spirits: operati… margin of 5% - 6%
On October 6, 2026, Constellation’s board of directors declared a quarterly cash dividend of $1.03 per share of Class A Common Stock payable on November 13, 2026, to stockholders of record as of the close of business on October 30, 2026.
† A copy of this release, including the attachments and other financial information that may be discussed during the call, will be available on our investor relations website, ir.cbrands.com , prior to the call.
ABOUT CONSTELLATION BRANDS Constellation Brands (NYSE: STZ), a leading U.S.-based company, is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next. Every day, people reach for brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey. As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For. To learn more, visitwww.cbrands.comand follow us onLinkedInandInstagram.
MEDIA INVESTOR CONTACTS RELATIONS CONTACTS Maggie 213-500-… maggie.bo… Blair 585-284-4… blair.ve… Bowman Veenema Carissa 315-525-… carissa.g… David 585-282-7… david.pa… Guzski Paccapan… Emily 585-765-5… emily.bl… Blanchard
Reported basis are derived from amounts as reported under GAAP. Comparable basis are amounts which exclude comparable adjustments, as they are not reflective of core operations of the segments. The company’s measure of segment profitability excludes comparable adjustments, which is consistent with the measure used by management to evaluate results. The company discusses various non-GAAP measures in this release. Financial statements, as well as supplemental schedules and tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in this release.
The statements made under the heading Outlook and all statements other than statements of historical fact set forth in this release, including statements regarding our business strategy, priorities, and objectives, expanding our reach, investing behind our brands and capabilities, our growth and long- term value creation, our capital allocation priorities and targets, maintaining financial flexibility, returning capital to shareholders, future operations, financial position, expected net sales, operating margin, tax rate, operating cash flow, capital expenditures, free cash flow, EPS, future payments of dividends, amount, manner, and timing of share repurchases under the share repurchase authorization, and prospects, plans, and objectives of management, as well as information concerning expected actions of third parties, are forward- looking statements that involve risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those set forth in, or implied by, the Projections.
When used in this release, the words “anticipate,” “believe,” “expect,” “intend,” “outlook,” “will,“ “encouraged,” “approach,” “ability,” “enable,” and similar expressions are intended to identify Projections, although not all Projections contain such identifying words. All Projections speak only as of the date of this release. We undertake no obligation to update or revise any Projections, whether as a result of new information, future events, or otherwise. The Projections are based on management’s current estimates, expectations, plans, and timetables, and, unless otherwise noted, do not take into account the impact of any planned or future acquisition, investment, merger, other business combination, or divestiture (including, in each case, any associated amount of incremental contingent consideration payment paid or received), cost savings, restructuring, operating, or efficiency initiatives, tariff changes, impacts, and responses, or financing or share repurchases that may be completed after the issuance of this release. Although we believe that the estimates, expectations, plans, and timetables reflected in the Projections are reasonable, we can give no assurance that such estimates, expectations, plans, and timetables will prove to be correct. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, the Projections contained in this release are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:
• potential declines in the consumption of products we sell and our dependence on sales of our beer brands;
• impacts of our acquisition, divestiture, investment, and new product development strategies and activities, including from the SpikedAde acquisition and the amount of contingent consideration, if any, that may be paid;
• dependence upon our trademarks and proprietary rights, including the failure to protect our intellectual property rights;
• economic and other uncertainties associated with our international operations, including tariffs;
• water, agricultural and other raw material, and packaging material supply, production, and/or transportation difficulties, disruptions, and impacts, including limited groups of certain suppliers;
• reliance on complex information systems and third-party global networks as well as risks associated with cybersecurity and artificial intelligence;
• dependence on limited facilities for production of our beer brands and impacts from our Brewery Projects;
• operational disruptions or catastrophic loss to our breweries, wineries, other facilities, or distribution systems;
• severe weather, natural and man-made disasters, climate change, environmental sustainability and corporate social responsibility-related regulatory compliance, and failure to meet environmental sustainability and corporate social responsibility commitments and aspirations;
• food safety and quality, including contamination and product degradation from diseases, pests, weather, and other conditions;
• communicable infection or disease outbreaks, pandemics, or other widespread public health crises impacting our consumers, Customers, employees, and/or suppliers;
• effects of employee labor activities that could increase our costs;our indebtedness and credit ratings, interest rate fluctuations, and credit market disruptions or volatility;
• our international operations, worldwide and regional economic trends and financial market conditions, geopolitical uncertainty, including as a result of the conflict in the Middle East, or other governmental rules and regulations;
• class action or other litigation we face or may face, including related to alleged securities law violations, abuse or misuse of our products, product liability, marketing or sales practices, or other matters;
• potential impairments of our intangible assets, such as goodwill and trademarks;
• changes to tax laws, fluctuations in our effective tax rate, accounting for tax positions, resolution of tax disputes, changes to accounting standards, elections, assertions, or policies, and the potential impact of a global minimum tax rate;
• uncertainties related to future cash dividends and share repurchases, which may affect the price of our common stock;
• ownership of our Class A Common Stock by certain individuals and entities affiliated with the Sands family and their Board of Director nomination rights;
• the choice-of-forum provision in our amended and restated by-laws regarding certain shareholder litigation; and
• other factors and uncertainties disclosed in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, which could cause actual future performance to differ materially from our current expectations.
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
August 31, February 28, 2026 2026 ───────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 98.5 $ 102.4 Accounts receivable 678.1 658.2 Inventories 1,378.6 1,433.9 Prepaid expenses and other 804.3 711.8 Total current assets 2,959.5 2,906.3 Property, plant, and equipment, net 8,653.2 8,520.9 Goodwill 5,269.3 5,233.9 Intangible assets 2,531.2 2,533.0 Deferred income taxes 1,339.3 1,370.3 Other assets 1,311.2 1,336.1 Total assets $ 22,063.7 $ 21,900.5 LIABILITIES AND STOCKHOLDER’S EQUITY Current liabilities: Short-term borrowings $ 116.5 $ 272.0 Current maturities of long-term debt 1,103.0 603.6 Accounts payable 999.4 960.2 Other accrued expenses and liabilities 744.9 854.0 Total current liabilities 2,963.8 2,689.8 Long-term debt, less current maturities 9,096.2 9,692.9 Deferred income taxes and other 1,124.3 1,130.9 liabilities Total liabilities 13,184.3 13,513.6 CBI stockholders’ equity 8,586.9 8,082.4 Noncontrolling interests 292.5 304.5 Total stockholders’ equity 8,879.4 8,386.9 Total liabilities and stockholders’ $ 22,063.7 $ 21,900.5 equity
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) August 31, August 31, (unaudited) Six Months Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 1,254.2 $ 1,009.9 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Deferred tax provision 26.8 277.6 (benefit) Depreciation 194.4 207.9 Stock-based compensation 34.9 32.1 Noncash lease expense 67.0 62.6 Asset impairment and 68.1 52.1 related expenses Change in operating assets and liabilities, net of effects from purchase and sale of business:
Accounts receivable -18.2 72.2 Inventories 3.3 -48.3 Prepaid expenses and other current -45.7 -56.8 assets Accounts payable 72.8 53.0 Contract liabilities 6.5 -50.4 Other accrued expenses and -197.9 -57.0 liabilities Other 12.4 -65.6 Total adjustments 224.4 479.4 Net cash provided by (used in) operating 1,478.6 1,489.3 activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant, and -354.1 -410.1 equipment Purchase of business, net of cash -15.3 — acquired Proceeds from sale of 4.1 30.8 assets Proceeds from sale of 13.9 851.1 business Other investing activities 1.0 -7.0 Net cash provided by (used in) investing -350.4 464.8 activities
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) August 31, August 31, (unaudited) Six Months Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of 499.7 499.1 long-term debt Principal payments of -602.1 -902.1 long-term debt Net proceeds from (repayments of) -155.5 -554.2 short-term borrowings Dividends paid -353.8 -361.1 Purchase of treasury stock -454.7 -604.0 Payment of excise tax on share -8.8 -9.9 repurchases Proceeds from shares issued under equity 7.3 13.0 compensation plans Payments of minimum tax withholdings on -10.2 -9.5 stock-based payment awards Payments of debt issuance, debt extinguishment, and other -3.1 -5.4 financing costs Distributions to noncontrolling -50.0 -17.5 interests Payment of contingent -0.3 -1.5 consideration Net cash provided by (used in) financing -1,131.5 -1,953.1 activities Effect of exchange rate changes on cash -0.6 2.9 and cash equivalents Net increase (decrease) in cash and cash -3.9 3.9 equivalents Cash and cash equivalents, beginning of 102.4 68.1 period Cash and cash equivalents, $ 98.5 $ 72.0 end of period
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF REPORTED AND ORGANIC NET SALES (in millions) (unaudited) For periods of acquisition, we define organic net sales as current period reported net sales less net sales of products of acquired businesses reported for the current period, as appropriate. For periods of divestiture, we define organic net sales as prior period reported net sales less net sales of products of divested businesses reported for the prior period, as appropriate. We provide organic net sales because management uses this information in monitoring and evaluating the underlying business trends of our core operations. In addition, we believe this information provides our investors and other external users valuable insight on underlying business trends and results in order to evaluate year-over-year financial performance.
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION (in millions) (unaudited)
(1) Includes adjustments to remove divestiture volumes for the applicable period:
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS, AND DEPRECIATION AND AMORTIZATION INFORMATION (in millions) (unaudited) Management excludes items that affect comparability from its evaluation of the results of each operating segment as these comparable adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these comparable adjustments. See page 14for further information on comparable adjustments.
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (in millions, except per share data) (unaudited) We report our financial results in accordance with GAAP. However, non-GAAP financial measures, as defined in the reconciliation tables below, are provided because management uses this information in evaluating the results of our core operations and/or internal goal setting. In addition, we believe this information provides our investors and other external users valuable insight on underlying business trends and results in order to evaluate year-over-year financial performance. See the tables below for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to GAAP financial measures for the periods presented. Non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, our reported results prepared in accordance with GAAP.
(1) Amount reflects gross profit less marketing that are no longer part of the results for the applicable period:
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) The comparable adjustments that impacted comparability in our results for each period are as follows:
Undesignated commodity derivative contracts Net gain (loss) on undesignated commodity derivative contracts represents a net gain (loss) from the changes in fair value of undesignated commodity derivative contracts. The net gain (loss) is reported outside of segment operating results until such time that the underlying exposure is recognized in the segment operating results. At settlement, the net gain (loss) from the changes in fair value of the undesignated commodity derivative contracts is reported in the appropriate operating segment, allowing the results of our operating segments to reflect the economic effects of the commodity derivative contracts without the resulting unrealized mark to fair value volatility.
Strategic business reconfiguration costs We recognized costs in connection with activities intended to streamline operations, improve efficiencies, and reduce our cost structure. Operating income (loss) also includes the loss on settlement of a receivable related to the sale of a previously-owned facility (three months and six months ended August 31, 2026).
Flow through of inventory step-up In connection with acquisitions, the allocation of purchase price in excess of book value for certain inventories on hand at the date of acquisition is referred to as inventory step-up. Inventory step-up represents an assumed manufacturing profit attributable to the acquired business prior to acquisition.
Asset impairment and related expenses We recognized (i) impairments on assets held for sale associated with management’s plan to divest the Nelson’s Green Brier business (three months and six months ended August 31, 2026) and on then- existing net assets held for sale in connection with the New Zealand Wine Divestitures (six months ended August 31, 2026) and (ii) contract liabilities and inventory obsolescence expenses associated with the 2025 Wine Divestitures, partially offset by changes in the carrying value of those then-existing net assets held for sale (six months ended August 31, 2025).
We recognized costs in connection with an enterprise-wide cost savings and restructuring initiative designed to help optimize the performance of our business.
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) Transition services agreements activity We recognized costs in connection with transition services agreements related to the previous sales of portions of our Wine and Spirits Business.
Gain (loss) on sale of business We recognized a net gain (loss) largely in connection with the 2025 Wine Divestitures (three months ended August 31, 2025 and six months ended August 31, 2026, and August 31, 2025, respectively).
We (i) recognized losses from the write-off of unamortized discount and debt issuance costs in connection with the redemption and repayment of outstanding senior notes (three months ended August 31, 2025 and six months ended August 31, 2026, and August 31, 2025, respectively) and (ii) wrote-off accrued interest income related to convertible notes issued to certain investments (three months and six months ended August 31, 2025).
The effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the comparable adjustment was recognized. Comparable adjustments, (Provision for) benefit from income taxes also include items solely impacting income taxes and consist of the following (expense) and benefit adjustments:
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited)
(1) The comparable adjustment effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the adjustment was recognized.
(2) Effective tax rate is not considered a GAAP financial measure, for purposes of this reconciliation, we derived the reported GAAP measure based on GAAP results, which serves as the basis for the reconciliation to the comparable non- GAAP financial measure.
Estimated for the Year Ending (1) Comparable adjustments include: February 28, 2027 ────────────────────────────────────────────────────────────────────────────── Asset impairment and related expenses $ 68 Settlements of undesignated commodity $ 24 derivative contracts Strategic business reconfiguration costs $ 17 Transition services agreements activity $ 16 2025 Restructuring Initiative $ 9 (Gain) loss on sale of business $ 4 Flow through of inventory step-up $ 2 Other (gains) losses $ 2 Net (gain) loss on undesignated commodity $ -53 derivative contracts
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions, except per share data) (unaudited) EPS Guidance
Estimated for Actual for the Year the Comparable Ending Year Ended adjustments February 28, February 28, (1) include:(2) 2027 2026 ────────────────────────────────────────────────────────────────────────────── Adjustments to valuation $ -1.10 $ 1.88 allowances Net (gain) loss on undesignated $ -0.23 $ -0.10 commodity derivative contracts Tax rate change $ -0.07 $ 0.13 impacts Recent $ -0.01 $ 0.25 divestitures Asset impairment $ 0.30 $ 0.46 and related expenses Adjustments to tax $ 0.12 $ 0.12 attributes Settlements of undesignated $ 0.11 $ -0.01 commodity derivative contracts Strategic business $ 0.09 $ 0.07 reconfigurat… costs Transition services $ 0.07 $ 0.15 agreements activity 2025 Restructuring $ 0.04 $ 0.30 Initiative (Gain) loss on sale of $ 0.02 $ 0.14 business Resolution of various tax examinations and $ 0.01 $ -1.36 assessments related to prior periods Flow through of inventory $ 0.01 $ 0.02 step-up Other (gains) $ 0.01 $ -0.12 losses Taxable dividend distribution $ — $ 0.19 from a foreign subsidiary (Income) loss from $ — $ 0.04 unconsolidat… investments CEO severance and $ — $ 0.03 transition benefits May not sum due to rounding as each item is computed independentl… The (2) comparable adjustments and comparable EPS are calculated on a fully dilutive basis.
Free cash flow, as defined in the reconciliation below, is considered a liquidity measure and is considered to provide useful information to investors and other external users about the amount of cash generated, which can then be used, after required debt service and dividend payments, for other general corporate purposes. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period.
MEANING enterprise-wide cost savings and restructuring initiative designed to help optimize the performance of our business sale and, in certain instances, exclusive license to use the trademarks of a portion of our wine and spirits business, primarily centered around our then-owned TERM mainstream wine brands and associated 2025 Restructuring Initiative inventory, wineries, vineyards, offices, 2025 Wine Divestitures and facilities on June 2, 2025 ────────────────────────────────────────────────────────────────────────────── bps basis points modular capacity addition activities at our breweries located in Nava, Coahuila, Brewery Projects Mexico and Obregón, Sonora, Mexico and our new brewery being constructed in Heroica Veracruz, Veracruz, Mexico CircanaTM Industry market research publication used by consumer packaged goods companies COGS cost of product sold certain items affecting comparability that have been excluded because management uses this information in monitoring and comparable adjustments evaluating the results and underlying business trends of the core operations of the Company and/or in internal goal setting Comparable or Comparable basis amounts which exclude items that affect comparability wholesale distributors, retailers (generally outside of the 3-tier U.S. distribution channel where products are sold to a distributor (wholesaler) who then sells to a retailer; the retailer Customers sells the products to a consumer; however, in control states, the state government performs the role of wholesaler and retailer), state alcohol beverage control agencies which sell to consumers, and direct-to-consumer purchasers represents U.S. distributor shipments of Depletions our respective branded products to retail customers, based on third-party data EPS diluted net income (loss) per share attributable to CBI external users financial analysts covering the Company, rating agencies, and other external users FY or fiscal fiscal year GAAP general accepted accounting principles in the U.S. statements made under the heading Outlook and all statements other than statements Projections of historical fact set forth in this release, including those identified under Forward-Looking Statements Reported or Reported basis derived from amounts as reported under GAAP RTD ready-to-drink sale of eight small-scale domestic-market New Zealand Wine Divestitures New Zealand mainstream wine brands and associated inventory, equipment, a winery, and vineyards in June 2026 NM not meaningful SG&A selling, general, and administrative expenses V/P/M volume / price / mix
Full text with the tables
Exhibit 99.1
Delivers EPS Growth Driven by Net Sales and Business Division Operating Income
Growth
Beer Business Accelerates Category Leading Share Gains Across U.S. Tracked
Channels
Returns an Additional $400 Million to Shareholders Through Share Repurchases and
Dividends
Net Sales Operating EPS
Income (Loss)
Second QuarterFiscal 2027 Financial
Highlights | in millions, except per
share data
Reported $2,633 $805 $3.32
% Change 6% -8% 25%
Comparable $2,633 $897 $3.74
% Change 6% 1% 3%
Note: A list of defined terms, including definitions of reported, comparable,
and organic, as well as reconciliations of non-GAAP financial measures are
contained elsewhere in this release. Comparable and organic amounts are non-GAAP
financial measures.
HIGHLIGHTS
• Generates reported EPS of $3.32 and
comparable EPS of $3.74
• Beer Business delivers both net sales
and operating income growth of 5% and
1%, respectively, while leading the
category in dollar and volume share
gains, outperforming the total beer
category by 4 percentage points in
year-over-year dollar and volume sales
across Circana U.S. tracked channels
• Wine and Spirits Business delivers
net sales growth of 17% and depletions
growth of 10.2%, outperforming the
total wine and spirits category in both
dollar and volume sales in Circana U.S.
tracked channels as the wine portfolio
was the #3 dollar share gainer in the
total wine category
• Generates year-to-date operating cash
flow of $1.5 billion and free cash flow
of $1.1 billion, a decrease of 1% and
an increase of 4%, respectively
• Updates fiscal 2027 reported EPS
outlook to $11.85 - $12.55, and
reaffirms comparable EPS outlook of
$11.20 - $11.90, operating cash flow
target of $2.4 - $2.5 billion, and free
cash flow target of $1.6 - $1.7 billion
• Repurchases $530 million of shares
year-to-date through September 2026
• Declares quarterly cash dividend of
$1.03 per share of Class A Common Stock
“During the
second quarter,
our portfolio of “Through the
iconic brands first half of
continued to fiscal 2027, our
resonate with strong cash flow
consumers. We generation
have sharpened enabled us to
our execution continue
and increased executing our
investment disciplined and
across the balanced capital
business, and allocation
are beginning to priorities. We
see early maintained our
returns through target comparable
accelerating net leverage
dollar and ratio of ~3.0x,
volume share returned more
gains in both than $800 million
our Beer and to shareholders
Wine & Spirits through share
businesses repurchases and
relative to the dividends, and
first quarter. continued to
As a result, we invest in our
were the #1 business through
dollar share increased
gainer in
beverage alcohol
during the
second quarter.
Looking
ahead, we brand marketing
remain focused support. As we
on building on look to the
this momentum second half of
by expanding the year, we
our reach remain committed
across more to supporting
consumers and long-term
occasions, growth,
while investing maintaining
behind the financial
brands and flexibility, and
capabilities returning
that will capital to
support our shareholders.”
next
phase of
growth.”
Nicholas Fink - Garth Hankinson
President & CEO - Executive Vice
President & CFO
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I1
Release
BEER
Net Operat…
Shipm… Deple… Sales Income
(Loss)
Three
Mont…
Ended
| in
mill…
bran…
prod…
24-p…
12-o…
case
equi…
Augu…
31, 123.9 $2,47… $964.2
2026
Augu…
31, 117.4 $2,34… $951.6
2025
% 5.5% -0.6% 5% 1%
Chan…
HIGHLIGHTS
• Net sales increased 5% driven by a
5.5% increase in shipment volumes.
• Operating margin decreased 160 bps
to 39.0% as lower tariff expenses and
favorable fixed cost absorption were
more than offset by increased
marketing investment and other SG&A
spend.
• Depletions decreased 0.6% as
declines for Modelo Especial of
approximately 2% and Corona Extra of
approximately 5% were partially
offset by growth from Pacifico,
Victoria, and the Modelo Chelada
brands of approximately 19%, 15%, and
5%, respectively. One additional sell
day during the quarter was largely
offset by a shift in the timing of
the Labor Day holiday, resulting in
minimal impact on underlying
depletion trends.
• Our Beer Business ranked as the #1
dollar and volume share gainer in
Circana U.S. tracked channels and had
5 of the top-15 dollar share gaining
brands across the entire U.S. beer
category:
◦ Modelo Especial maintained its
position as the #1 brand by dollar
sales and was the #3 dollar share
gainer. Within the brand family,
Modelo Chelada Limón y Sal was the #6
dollar share gainer;
◦ Corona Extra remained a top-five
brand by dollar sales, while Corona
Familiar was the #14 dollar share
gainer;
◦ Pacifico and Victoria were the #2
and #10 dollar share gainers,
respectively, and Pacifico became a
top-10 brand by dollar sales.
Note: totals may not sum due to rounding
SPIKEDADE ACQUISITION
Subsequent to the quarter, we acquired SpikedAde, a differentiated, consumer-led
spirit-based RTD brand competing in the emerging “Ade” segment. The addition of
SpikedAde to our portfolio of iconic brands is consistent with our strategy to
selectively expand into new demand spaces aimed at sustainable consumer trends,
strengthens our position in the fast-growing RTD category, and remains aligned
with our disciplined capital allocation priorities. The transaction included a
$75 million payment at close for 100% ownership of the business, as well as
additional contingent consideration of up to $278 million payable over five
years based on the future performance of the SpikedAde business. The acquisition
does not impact our fiscal 2027 outlook below.
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I2
Release
WINE
AND
SPIRI…
Net Operat…
Shipm… Deplet… Sales Income
(Loss)
Three
Mont…
Ended
| in
mill…
bran…
prod…
9-li…
case
equi…
Augu…
31, 1.5 $159.4 $6.1
2026
Augu…
31, 1.3 $136.0 $(19.…
2025
% 15.4% 10.2% 17% 131%
Chan…
HIGHLIGHTS
• Net sales increased 17% driven by a
15.4% increase in shipment volumes.
• Operating margin improved to 3.8%
driven by favorability in COGS from
recoveries of U.S. tariffs and savings
across marketing and other SG&A from
our optimization and restructuring
initiatives.
• Depletions increased 10.2% driven by
growth from Kim Crawford and Mi CAMPO
of approximately 11% and 51%,
respectively.
• Across Circana U.S. tracked channels,
our wine and spirits portfolio outpaced
the total wine and spirits category in
both dollar and volume sales, as our
wine portfolio was the #3 dollar share
gainer in the total wine category.
Note: totals may not sum due to rounding
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I3
Release
OUTLOOK
Enterpr…
and Wine
and
Spirits
growth
(declin…
net
sales
assumpt…
for
fiscal
2027
exclude
$142
million
for the
March 1,
2025 to
June 1,
2025,
period
that are
no
longer
part of
year-ov…
results
followi…
the
2025
Wine
Divesti…
The
table
sets
forth
managem…
current
EPS
expecta…
for
fiscal
2027
compared
to
fiscal
2026
actual
results.
Reported Comparab…
FY27 FY26 FY27 FY26
Estimate Actual Estimate Actual
Fiscal
Year $11.85 - $11.20 -
Ending $12.55 $9.61 $11.90 $11.82
February
28
Fiscal
2027
Guidance
Assumpt…
•Enterp…
organic
net
sales
growth
(declin…
of (1)%
- 1%
◦Beer:
net
sales
growth
(declin…
of (1)%
- 1% •Tax rate:
◦Wine reported
and ~12%;
Spirits: comparable
organic ~20%
net •Operating
sales cash flow:
growth $2.4 -
(declin… $2.5
of (1)% billion
- 1% •Capital
•Enterp… expenditu…
operati… ~$800
margin: million
reported •Free cash
of 31% - flow: $1.6
32%; - $1.7
compara… billion
of 32% -
33%
◦Beer:
operati…
margin
of 37% -
38%
◦Wine
and
Spirits:
operati…
margin
of 5% -
6%
QUARTERLY DIVIDEND
On October 6, 2026, Constellation’s
board of directors declared a quarterly
cash dividend of $1.03 per share of
Class A Common Stock payable on
November 13, 2026, to stockholders of
record as of the close of business on
October 30, 2026.
† A copy of this release, including the
attachments and other financial
information that may be discussed
during the call, will be available on
our investor relations website,
ir.cbrands.com , prior to the call.
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ), a leading U.S.-based company, is an
international producer and marketer of beer, wine, and spirits with
operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to
build brands that people love because we believe elevating human connections
is Worth Reaching For. It’s worth our dedication, hard work, and calculated
risks to anticipate market trends and deliver for our consumers,
shareholders, employees, and industry. This dedication is what has driven us
to become one of the fastest-growing, large CPG companies in the U.S. at
retail, and it drives our pursuit to deliver what’s next.
Every day, people reach for brands from our high-end, imported beer
portfolio anchored by the iconic Corona Extra and Modelo Especial, a
flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and
Victoria; our exceptional wine brands including The Prisoner Wine Company,
Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca;
and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey.
As an agriculture-based company, we strive to operate in a way that is
sustainable and responsible. Our ESG strategy is embedded into our business
and we focus on serving as good stewards of the environment, investing in
our communities, and promoting responsible beverage alcohol consumption. We
believe these aspirations in support of our longer-term business strategy
allow us to contribute to a future that is truly Worth Reaching For.
To learn more, visitwww.cbrands.comand follow us onLinkedInandInstagram.
MEDIA INVESTOR
CONTACTS RELATIONS
CONTACTS
Maggie 213-500-… maggie.bo… Blair 585-284-4… blair.ve…
Bowman Veenema
Carissa 315-525-… carissa.g… David 585-282-7… david.pa…
Guzski Paccapan…
Emily 585-765-5… emily.bl…
Blanchard
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I4
Release
SUPPLEMENTAL INFORMATION
Reported basis are derived from amounts as reported under GAAP. Comparable basis
are amounts which exclude comparable adjustments, as they are not reflective of
core operations of the segments. The company’s measure of segment profitability
excludes comparable adjustments, which is consistent with the measure used by
management to evaluate results. The company discusses various non-GAAP measures
in this release. Financial statements, as well as supplemental schedules and
tables reconciling non-GAAP measures, together with definitions of these
measures and the reasons management uses these measures, are included in this
release.
FORWARD-LOOKING STATEMENTS
The statements made under the heading
Outlook and all statements other than
statements of historical fact set forth
in this release, including statements
regarding our business strategy,
priorities, and objectives, expanding
our reach, investing behind our brands
and capabilities, our growth and long-
term value creation, our capital
allocation priorities and targets,
maintaining financial flexibility,
returning capital to shareholders,
future operations, financial position,
expected net sales, operating margin,
tax rate, operating cash flow, capital
expenditures, free cash flow, EPS,
future payments of dividends, amount,
manner, and timing of share repurchases
under the share repurchase
authorization, and prospects, plans,
and objectives of management, as well
as information concerning expected
actions of third parties, are forward-
looking statements that involve risks
and uncertainties, many of which are
beyond our control, and which could
cause actual results to differ
materially from those set forth in, or
implied by, the Projections.
When used in this release, the words
“anticipate,” “believe,” “expect,”
“intend,” “outlook,” “will,“
“encouraged,” “approach,” “ability,”
“enable,” and similar expressions are
intended to identify Projections,
although not all Projections contain
such identifying words. All Projections
speak only as of the date of this
release. We undertake no obligation to
update or revise any Projections,
whether as a result of new information,
future events, or otherwise. The
Projections are based on management’s
current estimates, expectations, plans,
and timetables, and, unless otherwise
noted, do not take into account the
impact of any planned or future
acquisition, investment, merger, other
business combination, or divestiture
(including, in each case, any
associated amount of incremental
contingent consideration payment paid
or received), cost savings,
restructuring, operating, or efficiency
initiatives, tariff changes, impacts,
and responses, or financing or share
repurchases that may be completed after
the issuance of this release. Although
we believe that the estimates,
expectations, plans, and timetables
reflected in the Projections are
reasonable, we can give no assurance
that such estimates, expectations,
plans, and timetables will prove to be
correct. In addition to the risks and
uncertainties of ordinary business
operations and conditions in the
general economy and markets in which we
compete, the Projections contained in
this release are also subject to the
risk, uncertainty, and possible
variance from our current expectations
regarding:
• potential declines in the consumption
of products we sell and our dependence
on sales of our beer brands;
• our President and Chief Executive
Officer transition;
• impacts of our acquisition,
divestiture, investment, and new
product development strategies and
activities, including from the
SpikedAde acquisition and the amount of
contingent consideration, if any, that
may be paid;
• dependence upon our trademarks and
proprietary rights, including the
failure to protect our intellectual
property rights;
• potential damage to our reputation;
• competition in our industry and for
talent;
• economic and other uncertainties
associated with our international
operations, including tariffs;
• water, agricultural and other raw
material, and packaging material
supply, production, and/or
transportation difficulties,
disruptions, and impacts, including
limited groups of certain suppliers;
• reliance on complex information
systems and third-party global networks
as well as risks associated with
cybersecurity and artificial
intelligence;
• dependence on limited facilities for
production of our beer brands and
impacts from our Brewery Projects;
• operational disruptions or
catastrophic loss to our breweries,
wineries, other facilities, or
distribution systems;
• severe weather, natural and man-made
disasters, climate change,
environmental sustainability and
corporate social responsibility-related
regulatory compliance, and failure to
meet environmental sustainability and
corporate social responsibility
commitments and aspirations;
• the success of our cost savings,
restructuring, and efficiency
initiatives;
• reliance on wholesale distributors,
major retailers, and government
agencies;
• food safety and quality, including
contamination and product degradation
from diseases, pests, weather, and
other conditions;
• communicable infection or disease
outbreaks, pandemics, or other
widespread public health crises
impacting our consumers, Customers,
employees, and/or suppliers;
• effects of employee labor activities
that could increase our costs;our
indebtedness and credit ratings,
interest rate fluctuations, and credit
market disruptions or volatility;
• our international operations,
worldwide and regional economic trends
and financial market conditions,
geopolitical uncertainty, including as
a result of the conflict in the Middle
East, or other governmental rules and
regulations;
• class action or other litigation we
face or may face, including related to
alleged securities law violations,
abuse or misuse of our products,
product liability, marketing or sales
practices, or other matters;
• potential impairments of our
intangible assets, such as goodwill and
trademarks;
• changes to tax laws, fluctuations in
our effective tax rate, accounting for
tax positions, resolution of tax
disputes, changes to accounting
standards, elections, assertions, or
policies, and the potential impact of a
global minimum tax rate;
• uncertainties related to future cash
dividends and share repurchases, which
may affect the price of our common
stock;
• ownership of our Class A Common Stock
by certain individuals and entities
affiliated with the Sands family and
their Board of Director nomination
rights;
• the choice-of-forum provision in our
amended and restated by-laws regarding
certain shareholder litigation; and
• other factors and uncertainties
disclosed in our filings with the SEC,
including our Annual Report on Form
10-K for the fiscal year ended February
28, 2026, which could cause actual
future performance to differ materially
from our current expectations.
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I5
Release
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
August 31, February 28,
2026 2026
─────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 98.5 $ 102.4
Accounts receivable 678.1 658.2
Inventories 1,378.6 1,433.9
Prepaid expenses and other 804.3 711.8
Total current assets 2,959.5 2,906.3
Property, plant, and equipment, net 8,653.2 8,520.9
Goodwill 5,269.3 5,233.9
Intangible assets 2,531.2 2,533.0
Deferred income taxes 1,339.3 1,370.3
Other assets 1,311.2 1,336.1
Total assets $ 22,063.7 $ 21,900.5
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Short-term borrowings $ 116.5 $ 272.0
Current maturities of long-term debt 1,103.0 603.6
Accounts payable 999.4 960.2
Other accrued expenses and liabilities 744.9 854.0
Total current liabilities 2,963.8 2,689.8
Long-term debt, less current maturities 9,096.2 9,692.9
Deferred income taxes and other 1,124.3 1,130.9
liabilities
Total liabilities 13,184.3 13,513.6
CBI stockholders’ equity 8,586.9 8,082.4
Noncontrolling interests 292.5 304.5
Total stockholders’ equity 8,879.4 8,386.9
Total liabilities and stockholders’ $ 22,063.7 $ 21,900.5
equity
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I6
Release
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three August August Six August August
Months 31, 31, Months 31, 31,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
NET
INCOME
(LOSS)
ATTRI…
TO CBI
Sales $ 2,816.7 $ 2,653.9 $ 5,407.1 $ 5,331.4
Excise -183.7 -172.9 -341.4 -335.4
taxes
Net 2,633.0 2,481.0 5,065.7 4,996.0
sales
Cost
of -1,240… -1,171.0 -2,352.1 -2,419…
produ…
sold
Gross 1,393.0 1,310.0 2,713.6 2,576.6
profit
Selli…
gener…
and -538.2 -436.0 -995.2 -936.7
admin…
expen…
Asset
impai…
and -49.8 — -68.1 -52.1
relat…
expen…
Opera…
income 805.0 874.0 1,650.3 1,587.8
(loss)
Income
(loss)
from 7.8 -3.5 8.3 -7.0
uncon…
inves…
Inter…
expen… -83.4 -87.6 -169.2 -186.5
net
Income
(loss)
before 729.4 782.9 1,489.4 1,394.3
income
taxes
(Prov…
for)
benef… -147.1 -296.8 -235.2 -384.4
from
income
taxes
Net
income 582.3 486.1 1,254.2 1,009.9
(loss)
Net
(inco…
loss
attri… -16.5 -20.1 -34.6 -27.8
to
nonco…
inter…
Net
income
(loss) $ 565.8 $ 466.0 $ 1,219.6 $ 982.1
attri…
to CBI
CLASS
A
COMMON
STOCK
Net
income
(loss)
per
common $ 3.32 $ 2.65 $ 7.12 $ 5.55
share
attri…
to CBI
–
basic
Net
income
(loss)
per
common $ 3.32 $ 2.65 $ 7.11 $ 5.55
share
attri…
to CBI
–
dilut…
Weigh…
avera…
common
shares 170.460 175.821 171.323 176.804
outst…
–
basic
Weigh…
avera…
common
shares 170.601 175.938 171.503 176.957
outst…
–
dilut…
Cash
divid…
decla… $ 1.03 $ 1.02 $ 2.06 $ 2.04
per
common
share
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I7
Release
CONSTELLATION BRANDS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in millions) August 31, August 31,
(unaudited) Six Months Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) $ 1,254.2 $ 1,009.9
Adjustments to reconcile
net income
(loss) to net cash provided
by (used in)
operating activities:
Deferred tax provision 26.8 277.6
(benefit)
Depreciation 194.4 207.9
Stock-based compensation 34.9 32.1
Noncash lease expense 67.0 62.6
Asset impairment and 68.1 52.1
related expenses
Change in operating assets
and
liabilities, net of effects
from
purchase and sale of
business:
Accounts receivable -18.2 72.2
Inventories 3.3 -48.3
Prepaid expenses and other
current -45.7 -56.8
assets
Accounts payable 72.8 53.0
Contract liabilities 6.5 -50.4
Other accrued expenses and -197.9 -57.0
liabilities
Other 12.4 -65.6
Total adjustments 224.4 479.4
Net cash provided by (used
in) operating 1,478.6 1,489.3
activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property,
plant, and -354.1 -410.1
equipment
Purchase of business, net
of cash -15.3 —
acquired
Proceeds from sale of 4.1 30.8
assets
Proceeds from sale of 13.9 851.1
business
Other investing activities 1.0 -7.0
Net cash provided by (used
in) investing -350.4 464.8
activities
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I8
Release
CONSTELLATION BRANDS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in millions) August 31, August 31,
(unaudited) Six Months Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of 499.7 499.1
long-term debt
Principal payments of -602.1 -902.1
long-term debt
Net proceeds from
(repayments of) -155.5 -554.2
short-term borrowings
Dividends paid -353.8 -361.1
Purchase of treasury stock -454.7 -604.0
Payment of excise tax on
share -8.8 -9.9
repurchases
Proceeds from shares issued
under equity 7.3 13.0
compensation plans
Payments of minimum tax
withholdings on -10.2 -9.5
stock-based payment awards
Payments of debt issuance,
debt
extinguishment, and other -3.1 -5.4
financing
costs
Distributions to
noncontrolling -50.0 -17.5
interests
Payment of contingent -0.3 -1.5
consideration
Net cash provided by (used
in) financing -1,131.5 -1,953.1
activities
Effect of exchange rate
changes on cash -0.6 2.9
and cash equivalents
Net increase (decrease) in
cash and cash -3.9 3.9
equivalents
Cash and cash equivalents,
beginning of 102.4 68.1
period
Cash and cash equivalents, $ 98.5 $ 72.0
end of period
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I9
Release
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF REPORTED AND ORGANIC NET SALES (in millions)
(unaudited)
For periods of acquisition, we define organic net sales as current period
reported net sales less net sales of products of acquired businesses reported
for the current period, as appropriate. For periods of divestiture, we define
organic net sales as prior period reported net sales less net sales of products
of divested businesses reported for the prior period, as appropriate. We provide
organic net sales because management uses this information in monitoring and
evaluating the underlying business trends of our core operations. In addition,
we believe this information provides our investors and other external users
valuable insight on underlying business trends and results in order to evaluate
year-over-year financial performance.
Th… Au… Au… Six Au… Au…
Mo… 31, 31, Pe… Mo… 31, 31, Pe…
En… 20… 20… Ch… En… 20… 20… Ch…
──────────────────────────────────────────────────────────────────────────────
C…
N… $ 2,… $ 2,… 6 % $ 5,… $ 4,… 1 %
s…
L… — — — -1…
d…
O…
n… $ 2,… $ 2,… 6 % $ 5,… $ 4,… 4 %
s…
B…
N… $ 2,… $ 2,… 5 % $ 4,… $ 4,… 4 %
s…
W…
A…
S…
N… $ 15… $ 13… 17 % $ 30… $ 41… (26 %)
s…
L… — — — -1…
d…
O…
n… $ 15… $ 13… 17 % $ 30… $ 27… 12 %
s…
(1) For the applicable period:
Six Months Ended August 31, 2025
2025 Wine Divestitures 3/1/2025 - 5/31/2025
────────────────────────────────────────────────────────────
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I10
Release
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION (in millions)
(unaudited)
Thr… Aug… Au… Six Aug… Au…
Mon… 31, 31, Per… Mo… 31, 31, Per…
End… 2026 20… Cha… En… 2026 20… Cha…
──────────────────────────────────────────────────────────────────────────────
BE…
(b…
pr…
24…
12…
ca…
eq…
Sh… 123… 11… 5.5 % 237… 22… 3.7 %
De… (0.6 %) (0.5 %)
WI…
AND
SP…
(b…
pr…
9-…
ca…
eq…
Sh… 1.5 1.3 15.4 % 2.9 5.2 (44… %)
Or… 1.5 1.3 15.4 % 2.9 2.6 11.5 %
sh…
De… 10.2 % 8.7 %
(1) Includes adjustments to remove divestiture volumes for the applicable
period:
Six Months Ended August 31, 2025
2025 Wine Divestitures 3/1/2025 - 5/31/2025
────────────────────────────────────────────────────────────
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I11
Release
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS,
AND DEPRECIATION AND AMORTIZATION INFORMATION (in millions)
(unaudited)
Management excludes items that affect comparability from its evaluation of the
results of each operating segment as these comparable adjustments are not
reflective of core operations of the segments. Segment operating performance and
the incentive compensation of segment management are evaluated based on core
segment operating income (loss) which does not include the impact of these
comparable adjustments. See page 14for further information on comparable
adjustments.
T… A… A… S… A… A…
M… 3… 3… P… M… 3… 3… P…
E… 2… 2… C… E… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
…
… $ 2… $ 2… 6 % $ 5… $ 4… 1 %
…
… $ 1… $ 1… 6 % $ 2… $ 2… 5 %
…
…
… $ 8… $ 8… (8 %) $ 1… $ 1… 4 %
…
… 3… % 3… % 3… % 3… %
…
…
…
… $ 7… $ -… 3… % $ 8… $ -… 2… %
…
…
…
… $ 9… $ 1… (6 %) $ 1… $ 2… (7 %)
…
…
…
… $ -… $ 1… NM $ 2… $ -… NM
…
…
… $ -… $ -… NM $ -… $ -… NM
…
…
…
… $ — $ -… NM $ — $ -… NM
…
…
…
… $ 2… $ 2… 5 % $ 4… $ 4… 4 %
…
…
… $ 1… $ 1… 8 % $ 2… $ 2… 5 %
…
…
… 5… % 5… % 5… % 5… %
…
…
… $ 9… $ 9… 1 % $ 1… $ 1… 2 %
…
…
…
… 3… % 4… % 3… % 3… %
…
…
… $ 7… $ 8… (7 %) $ 1… $ 1… (4 %)
…
…
…
…
…
… $ 1… $ 1… 17 % $ 3… $ 4… (… %)
…
…
… $ 7… $ 5… 29 % $ 1… $ 1… (… %)
…
…
… 4… % 4… % 4… % 3… %
…
…
… $ 6… $ -… 1… % $ 5… $ -… 1… %
…
…
…
… 3… % -… % 1… % -… %
…
…
…
… $ 7… $ 7… (1 %) $ 8… $ 5… 63 %
…
…
…
…
… $ 1… $ 1… 8 % $ 3… $ 3… (… %)
…
…
…
…
…
…
…
… $ -… $ -… (… %) $ -… $ -… (… %)
…
…
…
…
… $ 0… $ -… 1… % $ — $ -… 10…
…
…
…
…
… $ 5… $ 6… (… %) $ 1… $ 1… (… %)
…
…
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I12
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (in millions, except per
share data)
(unaudited)
We report our financial results in accordance with GAAP. However, non-GAAP
financial measures, as defined in the reconciliation tables below, are provided
because management uses this information in evaluating the results of our core
operations and/or internal goal setting. In addition, we believe this
information provides our investors and other external users valuable insight on
underlying business trends and results in order to evaluate year-over-year
financial performance. See the tables below for supplemental financial data and
corresponding reconciliations of these non-GAAP financial measures to GAAP
financial measures for the periods presented. Non-GAAP financial measures should
be considered in addition to, not as a substitute for, or superior to, our
reported results prepared in accordance with GAAP.
T… A… A… S… … …
M… 3… 3… P… M… … … …
E… 2… 2… C… E… … … …
──────────────────────────────────────────────────────────────────────────────
…
… $ 8… $ 8… (8 … $ … $ … 4 %
…
…
… 9… 1… … …
…
… — — — …
…
…
…
… $ 8… $ 8… 1 % $ … $ … 4 %
…
…
…
… 3… % 3… % … % … %
…
T… S…
M… M…
E… E…
A… A… P… A… A… P…
3… 3… C… 3… 3… C…
2… 2… 2… 2…
…
…
…
… $ 5… $ 4… 21 % $ … $ … … %
…
…
…
… 7… 1… … …
…
…
…
…
… $ 6… $ 6… (0 … $ … $ … 1 %
…
…
…
…
T… S…
M… M…
E… E…
A… A… P… A… A… P…
3… 3… C… 3… 3… C…
2… 2… 2… 2…
… $ 3… $ 2… 25 % $ … $ … … %
…
… 0… 0… … …
…
…
… $ 3… $ 3… 3 % $ … $ … 5 %
…
…
…
…
… 1… 1… … …
…
-
…
(1) Amount reflects gross profit less marketing that are no longer part of the
results for the applicable period:
Six Months Ended August 31, 2025
2025 Wine Divestitures 3/1/2025 - 5/31/2025
────────────────────────────────────────────────────────────
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I13
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions,
except per share data)
(unaudited)
The comparable adjustments that impacted comparability in our results for each
period are as follows:
Three August August Six August August
Months 31, 31, Months 31, 31,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Settl…
of
undes… $ -14.8 $ 4.2 $ -24.2 $ 6.7
commo…
deriv…
contr…
Strat…
busin… -3.7 -1.2 -4.3 -1.6
recon…
costs
Flow
throu…
of -0.1 -0.8 -1.1 -1.7
inven…
step-…
Net
gain
(loss)
on 3.4 13.0 52.7 -4.7
undes…
commo…
deriv…
contr…
Compa…
adjus… -15.2 15.2 23.1 -1.3
Gross
profit
Asset
impai…
and -49.8 — -68.1 -52.1
relat…
expen…
Strat…
busin… -14.2 — -13.9 -5.2
recon…
costs
2025
Restr… -4.9 -8.3 -5.5 -21.6
Initi…
Trans…
servi… -4.6 -10.0 -9.7 -15.5
agree…
activ…
Gain
(loss)
on -1.8 -14.9 -4.3 -16.3
sale
of
busin…
Other
gains -1.1 5.8 -2.1 3.7
(loss…
Compa…
adjus…
Opera… -91.6 -12.2 -80.5 -108.3
income
(loss)
Compa…
adjus…
Income
(loss) — -10.1 — -10.1
from
uncon…
inves…
Compa…
adjus…
Inter… — -1.6 -0.3 -1.6
expen…
net
Compa…
adjus…
(Prov…
for) 20.1 -147.9 72.5 -108.6
benef…
from
income
taxes
Compa…
adjus…
Net
income $ -71.5 $ -171.8 $ -8.3 $ -228.6
(loss)
attri…
to CBI
Undesignated commodity derivative contracts Net gain (loss) on undesignated
commodity derivative contracts represents a net gain (loss) from the changes in
fair value of undesignated commodity derivative contracts. The net gain (loss)
is reported outside of segment operating results until such time that the
underlying exposure is recognized in the segment operating results. At
settlement, the net gain (loss) from the changes in fair value of the
undesignated commodity derivative contracts is reported in the appropriate
operating segment, allowing the results of our operating segments to reflect the
economic effects of the commodity derivative contracts without the resulting
unrealized mark to fair value volatility.
Strategic business reconfiguration costs We recognized costs in connection with
activities intended to streamline operations, improve efficiencies, and reduce
our cost structure. Operating income (loss) also includes the loss on settlement
of a receivable related to the sale of a previously-owned facility (three months
and six months ended August 31, 2026).
Flow through of inventory step-up In connection with acquisitions, the
allocation of purchase price in excess of book value for certain inventories on
hand at the date of acquisition is referred to as inventory step-up. Inventory
step-up represents an assumed manufacturing profit attributable to the acquired
business prior to acquisition.
Asset impairment and related expenses We recognized (i) impairments on assets
held for sale associated with management’s plan to divest the Nelson’s Green
Brier business (three months and six months ended August 31, 2026) and on then-
existing net assets held for sale in connection with the New Zealand Wine
Divestitures (six months ended August 31, 2026) and (ii) contract liabilities
and inventory obsolescence expenses associated with the 2025 Wine Divestitures,
partially offset by changes in the carrying value of those then-existing net
assets held for sale (six months ended August 31, 2025).
2025 Restructuring Initiative
We recognized costs in connection with an enterprise-wide cost savings and
restructuring initiative designed to help optimize the performance of our
business.
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I14
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions,
except per share data)
(unaudited)
Transition services agreements activity We recognized costs in connection with
transition services agreements related to the previous sales of portions of our
Wine and Spirits Business.
Gain (loss) on sale of business We recognized a net gain (loss) largely in
connection with the 2025 Wine Divestitures (three months ended August 31, 2025
and six months ended August 31, 2026, and August 31, 2025, respectively).
Other gains (losses)
Primarily includes the following:
Three Six
Months Months
Ended Ended
August August August August
31, 31, 31, 31,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gain
(loss)
on sale $ — $ 4.1 $ — $ 4.1
of
assets
Comparable adjustments, Income (loss) from unconsolidated investments
Includes the following:
Three Six
Months Months
Ended Ended
August August August August
31, 31, 31, 31,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Unreali…
gain
(loss)
from the
changes
in fair $ — $ -5.0 $ — $ -5.0
value of
our
securit…
measured
at fair
value
Other
gains $ — $ -3.6 $ — $ -3.6
(losses)
Equity
method $ — $ -1.5 $ — $ -1.5
investm…
impairm…
Comparable adjustments, Interest expense, net
We (i) recognized losses from the write-off of unamortized discount and debt
issuance costs in connection with the redemption and repayment of outstanding
senior notes (three months ended August 31, 2025 and six months ended August 31,
2026, and August 31, 2025, respectively) and (ii) wrote-off accrued interest
income related to convertible notes issued to certain investments (three months
and six months ended August 31, 2025).
Comparable adjustments, (Provision for) benefit from income taxes
The effective tax rate applied to each comparable adjustment amount is generally
based upon the jurisdiction in which the comparable adjustment was recognized.
Comparable adjustments, (Provision for) benefit from income taxes also include
items solely impacting income taxes and consist of the following (expense) and
benefit adjustments:
Three August August Six August August
Months 31, 31, Months 31, 31,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Recent $ 1.5 $ -7.1 $ 1.5 $ -13.2
dives…
Resol…
of
vario…
tax
exami…
and $ -1.2 $ 65.5 $ -1.8 $ 87.4
asses…
relat…
to
prior
perio…
Adjus…
to $ — $ -192.1 $ 63.3 $ -192.7
valua…
allow…
Taxab…
divid…
distr… $ — $ -18.3 $ — $ -18.3
from a
forei…
subsi…
Tax
rate $ — $ — $ 11.5 $ —
change
impac…
Adjus…
to tax $ — $ — $ -20.1 $ —
attri…
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I15
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions,
except per share data)
(unaudited)
Th… Au… Au…
Mo… 31, 31,
En… 20… 20…
──────────────────────────────────────────────────────────────────────────────
In… -P… I… -…
(l… fo… E… (… f… E…
be… be… t… b… b… t…
in… fr… r… i… f… r…
ta… in… t… i…
ta… t…
R…
b… $ 72… $ -1… 20… % $ 78… $ -2… 37… %
(…
C… 91… -2… 23… 14…
a…
C…
b… $ 82… $ -1… 20… % $ 80… $ -1… 18… %
(…
(1) The comparable adjustment effective tax rate applied to each comparable
adjustment amount is generally based upon the jurisdiction in which the
adjustment was recognized.
(2) Effective tax rate is not considered a GAAP financial measure, for purposes
of this reconciliation, we derived the reported GAAP measure based on GAAP
results, which serves as the basis for the reconciliation to the comparable non-
GAAP financial measure.
Operating Margin Guidance
Guidance Range for the
Year
Ending February 28, 2027
──────────────────────────────────────────────────────────────────────────────
Net sales (GAAP) $ 8,910 $ 9,090
Operating income (GAAP) $ 2,745 $ 2,895
Comparable 90 90
adjustments(1)
Comparable operating $ 2,835 $ 2,985
income (Non-GAAP)
Operating margin (GAAP) 31 % 32 %
Comparable operating 32 % 33 %
margin (Non-GAAP)
Estimated for
the Year Ending
(1) Comparable adjustments include: February 28, 2027
──────────────────────────────────────────────────────────────────────────────
Asset impairment and related expenses $ 68
Settlements of undesignated commodity $ 24
derivative contracts
Strategic business reconfiguration costs $ 17
Transition services agreements activity $ 16
2025 Restructuring Initiative $ 9
(Gain) loss on sale of business $ 4
Flow through of inventory step-up $ 2
Other (gains) losses $ 2
Net (gain) loss on undesignated commodity $ -53
derivative contracts
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I16
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) (in millions,
except per share data)
(unaudited)
EPS Guidance
Guidance Range
for the Year Actual for the
Ending February Year Ended
28, 2027 February 28, 2026
──────────────────────────────────────────────────────────────────────────────
Forecasted EPS $ 11.85 $ 12.55 $ 9.61
(GAAP)
Comparable -0.65 -0.65 2.21
adjustments(1)
Forecasted
comparable EPS $ 11.20 $ 11.90 $ 11.82
(Non-GAAP)(2)
Estimated for Actual for
the Year the
Comparable Ending Year Ended
adjustments February 28, February 28,
(1) include:(2) 2027 2026
──────────────────────────────────────────────────────────────────────────────
Adjustments
to valuation $ -1.10 $ 1.88
allowances
Net (gain)
loss on
undesignated $ -0.23 $ -0.10
commodity
derivative
contracts
Tax rate
change $ -0.07 $ 0.13
impacts
Recent $ -0.01 $ 0.25
divestitures
Asset
impairment $ 0.30 $ 0.46
and related
expenses
Adjustments
to tax $ 0.12 $ 0.12
attributes
Settlements
of
undesignated $ 0.11 $ -0.01
commodity
derivative
contracts
Strategic
business $ 0.09 $ 0.07
reconfigurat…
costs
Transition
services $ 0.07 $ 0.15
agreements
activity
2025
Restructuring $ 0.04 $ 0.30
Initiative
(Gain) loss
on sale of $ 0.02 $ 0.14
business
Resolution of
various tax
examinations
and $ 0.01 $ -1.36
assessments
related to
prior periods
Flow through
of inventory $ 0.01 $ 0.02
step-up
Other (gains) $ 0.01 $ -0.12
losses
Taxable
dividend
distribution $ — $ 0.19
from a
foreign
subsidiary
(Income) loss
from $ — $ 0.04
unconsolidat…
investments
CEO severance
and $ — $ 0.03
transition
benefits
May not sum
due to
rounding as
each item is
computed
independentl…
The
(2) comparable
adjustments
and
comparable
EPS are
calculated on
a fully
dilutive
basis.
Free Cash Flow Guidance
Free cash flow, as defined in the reconciliation below, is considered a
liquidity measure and is considered to provide useful information to investors
and other external users about the amount of cash generated, which can then be
used, after required debt service and dividend payments, for other general
corporate purposes. A limitation of free cash flow is that it does not represent
the total increase or decrease in the cash balance for the period.
Guidance Range for
the Year
Ending February 28,
2027
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 2,400 $ 2,500
activities (GAAP)
Purchase of
property, plant, and -800 -800
equipment
Free cash flow $ 1,600 $ 1,700
(Non-GAAP)
Six Months Ended
August 31, August 31,
2026 2025
Net cash provided by
operating $ 1,478.6 $ 1,489.3
activities (GAAP)
Purchase of
property, plant, and -354.1 -410.1
equipment
Free cash flow $ 1,124.5 $ 1,079.2
(Non-GAAP)
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I17
Release
DEFINED TERMS
Unless the context otherwise requires, the terms “Company,” “CBI,” “we,” “our,”
or “us” refer to Constellation Brands, Inc. and its subsidiaries.
MEANING
enterprise-wide cost savings and
restructuring initiative designed to help
optimize the performance of our business
sale and, in certain instances, exclusive
license to use the trademarks of a portion
of our wine and spirits business,
primarily centered around our then-owned
TERM mainstream wine brands and associated
2025 Restructuring Initiative inventory, wineries, vineyards, offices,
2025 Wine Divestitures and facilities on June 2, 2025
──────────────────────────────────────────────────────────────────────────────
bps basis points
modular capacity addition activities at
our breweries located in Nava, Coahuila,
Brewery Projects Mexico and Obregón, Sonora, Mexico and our
new brewery being constructed in Heroica
Veracruz, Veracruz, Mexico
CircanaTM Industry market research publication used
by consumer packaged goods companies
COGS cost of product sold
certain items affecting comparability that
have been excluded because management uses
this information in monitoring and
comparable adjustments evaluating the results and underlying
business trends of the core operations of
the Company and/or in internal goal
setting
Comparable or Comparable basis amounts which exclude items that affect
comparability
wholesale distributors, retailers
(generally outside of the 3-tier U.S.
distribution channel where products are
sold to a distributor (wholesaler) who
then sells to a retailer; the retailer
Customers sells the products to a consumer; however,
in control states, the state government
performs the role of wholesaler and
retailer), state alcohol beverage control
agencies which sell to consumers, and
direct-to-consumer purchasers
represents U.S. distributor shipments of
Depletions our respective branded products to retail
customers, based on third-party data
EPS diluted net income (loss) per share
attributable to CBI
external users financial analysts covering the Company,
rating agencies, and other external users
FY or fiscal fiscal year
GAAP general accepted accounting principles in
the U.S.
statements made under the heading Outlook
and all statements other than statements
Projections of historical fact set forth in this
release, including those identified under
Forward-Looking Statements
Reported or Reported basis derived from amounts as reported under
GAAP
RTD ready-to-drink
sale of eight small-scale domestic-market
New Zealand Wine Divestitures New Zealand mainstream wine brands and
associated inventory, equipment, a winery,
and vineyards in June 2026
NM not meaningful
SG&A selling, general, and administrative
expenses
V/P/M volume / price / mix
Constellation Brands, Inc. Q2 FY 2027 Earnings #WORTHREACHINGFOR I18
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