Constellation Brands Inc.
STZFinancial Snapshot
ticker: STZ step: 04 generated: 2026-05-12 source: quick-research
Constellation Brands Inc. (STZ) — Financial Snapshot
Income Statement Summary
Note: Constellation fiscal year ends February 28/29. FY2024 = March 2023–Feb 2024; FY2025 = March 2024–Feb 2025.
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $9.45B | $9.96B | $10.21B | +2.5% |
| Gross Margin | ~51% | ~52% | ~52% | flat |
| Operating Margin | ~29% | ~31% | ~32% | +100bps |
| Net Income (GAAP) | ~$2.1B | ~$2.3B | ~$(0.1B)* | |
| Comparable EPS | ~$11.20 | ~$12.90 | $13.78 | +7% |
FY2025 GAAP net income negative due to $3B+ non-cash goodwill impairment charges on the Wine & Spirits segment. Comparable (adjusted) EPS of $13.78 reflects strong underlying beer business performance.
FY2026 (ended Feb 2026): Revenue $9.14B (-10.5%, reflecting wine divestitures); Comparable EPS guidance $11.30–$11.60 (declining from tariffs and Hispanic consumer volume weakness).
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.4B |
| Free Cash Flow | $1.97B |
| FCF Margin | ~19% |
| Cash & Equivalents | ~$0.3B |
| Total Debt | ~$11.5B |
| Net Debt / EBITDA | ~3.5x |
Key Ratios (approximate, based on FY2025)
- P/E (comparable): ~13–15x | FCF Yield: ~8–9% at current market cap
- EV/EBITDA: ~11x | Dividend Yield: ~2.5%
- Revenue Growth (FY2025): +2.5% | Beer segment: ~+5–6% organic
- Leverage: ~3.5x net debt/EBITDA (elevated due to Mexico brewery expansion capex)
Growth Profile
Constellation's beer business delivered consistent 5–7% organic revenue growth for most of the 2018–2024 period, driven by Modelo Especial's market share gains. FY2026 marked a turning point: a 25% tariff on Mexican imports (announced April 2025) and measurable pullback among Hispanic consumers amid immigration enforcement created volume weakness — the first real deceleration in the Modelo story. Management withdrew its FY2028 growth guidance, guided comparable EPS down to $11.30–$11.60 (from $13.78 in FY2025), and deferred capex decisions on the Veracruz brewery expansion. FY2026 FCF was $1.79B; FY2027 guided $1.6–$1.7B.
Forward Estimates
- FY2027: Comparable EPS ~$10.50–$12.00 (wide range reflecting tariff uncertainty); FCF ~$1.6–1.7B
- FY2028 target (withdrawn): Management previously guided to $20+ comparable EPS by FY2028; guidance withdrawn April 2026 due to tariff and macro uncertainty
- Wine divestitures: Expected to close in FY2026-FY2027; proceeds to reduce $11.5B debt load; $200M in annualized cost savings expected by FY2028
- FIFA World Cup 2026: Scheduled for summer 2026 in U.S./Canada/Mexico — natural marketing event for beer brands; could catalyze consumption occasion recovery
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $STZ.