Constellation Brands(US:STZ)2025-07-01 22:21Financial Performance - The company updated its FY26 reported EPS outlook to $1207-$1237 and maintained a comparable EPS outlook of $1260-$1290[15] - The company maintained FY26 targets for operating cash flow of $27 billion to $28 billion and free cash flow of $15 billion to $16 billion[15] - The company reported a low-single-digit net sales decline and a mid-single-digit operating income decline[15] - The company's operating margin contracted by 150 bps year-over-year to 391%[15] Beer Business - Beer Business shipments decreased by 33% and depletions decreased by 26%[19] - Beer Business net sales decreased by 2% to $22345 million, and operating income decreased by 5% to $8734 million[19] - The company achieved over $40 million of a net benefit through supply chain efficiency initiatives in Q1 FY26[18] Wine and Spirits Business - Wine and Spirits Business experienced a double-digit organic net sales decline and a triple-digit operating income decline[16] - Wine and Spirits Business operating margin contracted from 153% to (21%)[16] - Wine and Spirits Business organic net sales are expected to decline 17-20% and organic operating income to decline 97-100% in FY26[16] Capital Allocation - The company maintained its net leverage ratio at a target of approximately 30X[16, 18] - The company executed $381 million of share repurchases through June 2025[16] - Capital expenditures totaled $193 million, primarily focused on Beer brewing capacity additions[16]