Corona Beer Maker Talks Tariff Impact, Issues Conservative Outlook

Constellation Brands Inc (NYSE:STZ) reported fourth-quarter net connected Wednesday. Its nett income grew 1% twelvemonth implicit twelvemonth (Y/Y) to $2.16 billion, beating the expert statement estimation of $2.13 billion.

Net income for the Beer conception remained level Y/Y at $1.70 billion, and Wine and Spirits roseate 11% Y/Y to $459.8 million. Shipment measurement for Beer fell 1.8% Y/Y, portion Wine and Spirits roseate 3.5% Y/Y.

Gross nett accrued 7% twelvemonth implicit year to $1.11 billion. The institution reported an operating nonaccomplishment of $(150.3) cardinal compared to operating income of $629.4 cardinal successful the aforesaid 4th a twelvemonth ago.

The operating borderline for the 4th was (6.9)% vs. 29.4% successful the prior-year quarter.

Adjusted EPS of $2.63 bushed the analyst consensus estimation of $2.28.

The institution generated an operating currency flow of $3.2 cardinal successful FY25, a 13% year-over-year increase, and a escaped currency flow of $1.9 billion, a 28% year-over-year growth.

Constellation Brands ended the 4th with $68.1 million in currency and equivalents arsenic of February 28.

As of the extremity of fiscal 2025, Constellation Brands had astir 48 cardinal hectoliters of accumulation capableness crossed its facilities successful Mexico.

Dividend: Constellation's committee declared a quarterly currency dividend of $1.02 per share, an summation of 1%, payable connected May 15, to stockholders of grounds connected April 29.

Buyback: The institution announced a caller 3-year share repurchase authorization of $4 billion.

President and CEO Bill Newlands stated, "Despite a softer user request backdrop successful fiscal 2025, we delivered different twelvemonth of Enterprise nett income maturation and important comparable operating borderline improvement, arsenic good arsenic double-digit comparable EPS growth."

"Looking ahead, successful a pugnacious socioeconomic situation we are taking decisive actions designed to proceed to enactment our industry-leading Beer Business, reset our outgo base, and redefine our portfolio."

Garth Hankinson, Executive Vice President and Chief Financial Officer, added, "We stay committed to these balanced priorities arsenic we deploy the astir $9 cardinal of operating currency travel we expect to make betwixt fiscal 2026 and fiscal 2028, including done the usage of our caller full $4 cardinal stock repurchase authorization aligned with that period."

Guidance: The institution issued FY26 guidance, projecting comparable EPS of $12.60–$12.90 vs. statement of $13.45.

The institution expects endeavor integrated nett income maturation to beryllium level to 3% successful the Beer conception and a diminution of 17% to 20% successful the Wine and Spirits conception successful FY26.