Constellation Brands(US:STZ)2025-10-07 12:00Financial Performance - The company updated its FY26 reported EPS outlook to $986-$1016 and affirmed its comparable EPS outlook of $1130-$1160[15] - The company affirmed its FY26 targets for operating cash flow of $25 billion to $26 billion and free cash flow of $13 billion to $14 billion[15] - Enterprise Q2 FY26 reported net sales were $2481 billion, a 15% decrease compared to Q2 FY25, while organic net sales also decreased by 8%[23, 26] - The Beer Business experienced a high-single digit net sales decline and a low-double digit operating income decline, with a 200 bps year-over-year operating margin contraction to 406%[17] - The Wine and Spirits Business saw a double-digit organic net sales decline and triple-digit operating income declines, with operating margin contraction from 181% to (146%)[18] Capital Allocation - The company maintained its net leverage ratio at a target of approximately 30X[16, 21] - The company declared a dividend of $102 per Class A share[16] - The company executed $298 million of share repurchases in Q2, bringing the fiscal YTD total to $604 million[16, 21] - Capital expenditures in Q2 were $217 million, bringing the fiscal YTD total to $410 million, primarily focused on Beer brewing capacity additions[16, 21] Outlook - The company continues to expect FY26 organic net sales for Wine and Spirits to decline 17%-20% and organic operating income to decline 97%-100%[18] - The company affirms its FY26 outlook for Beer Business net sales to decline 2%-4% and operating income to decline 7%-9%[17]