01—Abstract
Summary
Summary of the 10-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
Constellation Brands, Inc. reported a net loss attributable to CBI of $(81.4) million for Fiscal 2025 (year ended February 28, 2025), compared with net income of $1,727.4 milliona for Fiscal 2024.
Net sales rose to $10,208.7 millionb from $9,961.8 million, driven by Beer net sales of $8,539.8 million, while Wine and Spirits net sales declined to $1,668.9 million from $1,799.2 million. The swing to a loss was driven primarily by Wine and Spirits impairments: a $2,740.7 million goodwill impairment (writing the segment's goodwill down to zero), a $57.0 million trademark impairment, and a $478.0 million assets held for sale impairment tied to the April 2025 wine divestiture. Operating income fell to $354.9 million from $3,169.7 million.
The Beer segment remained the core earnings driver, with operating income of $3,394.4 millionc versus $3,094.4 million in the prior year, supported by pricing, shipment volume growth, and cost savings. Cash flow from operations was $3,152.2 million, and the company returned capital through $1,123.8 million of share repurchases and $731.8 million of dividends paid. Total debt was $11,497.7 million at February 28, 2025, and the company announced a $4.0 billion share repurchase authorization in April 2025.
In April 2025 the company agreed to divest and, in certain instances, exclusively license a portion of its wine and spirits business, primarily its remaining mainstream wine brands, for $900 milliond, subject to adjustments and regulatory approval, with closing expected after the first quarter of Fiscal 2026. The company also launched a 2025 Restructuring Initiative expected to yield over $200 million in net annualized cost savings by Fiscal 2028, and plans roughly $2 billion of Mexico Beer Projects spending over Fiscal 2026 through Fiscal 2028.
02—Key points
Key Highlights
- Net sales increased to $10,208.7 million (from $9,961.8 million), with Beer net sales up to $8,539.8 million and Wine and Spirits down to $1,668.9 million.
- Net loss attributable to CBI of $(81.4) million versus net income of $1,727.4 million in Fiscal 2024, driven by Wine and Spirits impairments.
- Goodwill and intangible assets impairment of $2,797.7 million, including a $2,740.7 million goodwill write-down that eliminated the Wine and Spirits reporting unit's goodwill.
- Beer operating income rose to $3,394.4 million from $3,094.4 million, supported by favorable pricing, shipment volume growth and cost savings.
- Operating cash flow of $3,152.2 million, with $1,123.8 million of share repurchases and $731.8 million of dividends paid.
- April 2025 agreement to divest a portion of the wine and spirits business for $900 million, subject to adjustments and regulatory approval.
- Board authorized a new $4.0 billion share repurchase program in April 2025, replacing the 2023 Authorization; $3,908.3 million remained available as of April 23, 2025.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, Constellation Brands lost $0.01.
- Revenue$10.21B100.0%
- Cost of revenue−$4.89B47.9%
- Gross profit$5.31B52.1%
- Operating costs−$4.96B48.6%
- Operating income$354.9M3.5%
- Interest, other & tax−$436.3M4.3%
- Net income−$81.4M0.8%
Where FY2025 revenue went
$10.21B- Cost of revenue: $4.89B, 48% of revenue
- Other operating costs: $3.01B, 29% of revenue
- SG&A: $1.95B, 19% of revenue
- Operating income: $354.9M, 3.5% of revenue
Kept 3.5% as operating incomeOperating income $354.9M · 3.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed April 23, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $10.21B$9.96B | +2.5% |
| Cost of Revenue | $4.89B$4.94B | −1.0% |
| Gross Profit | $5.31B$5.02B | +5.9% |
| SG&A Expenses | $1.95B$1.83B | +6.4% |
| Operating Income | $354.90M$3.17B | −88.8% |
| Net Income | -$81.40M$1.73B | −104.7% |
05—Questions
Frequently Asked Questions
Why did Constellation Brands report a net loss in Fiscal 2025?
The net loss attributable to CBI of $(81.4) million was largely due to Wine and Spirits-related impairments, including a $2,740.7 million goodwill impairment, a $57.0 million trademark impairment, and a $478.0 million assets held for sale impairment. Fiscal 2024 had net income attributable to CBI of $1,727.4 million, which also benefited from Canopy-related activity that did not recur.
How is the Beer business performing?
Beer net sales rose 5% to $8,539.8 million, driven by $264.2 million of shipment volume growth and $168.1 million of favorable pricing, partially offset by $55.1 million of unfavorable product mix. Beer operating income increased to $3,394.4 million from $3,094.4 million. The company expects Fiscal 2026 shipment volume to generally align with depletion volume.
What is the status of the wine and spirits divestiture?
In April 2025 the company agreed to fully divest and, in certain instances, exclusively license the trademarks of a portion of its wine and spirits business, primarily its remaining mainstream wine brands, for $900 million, subject to adjustments. Closing is subject to regulatory approval and is expected immediately after the end of the first quarter of Fiscal 2026. The company reclassified $879.8 million of net assets to held for sale as of February 28, 2025.
How much capital is the company returning to shareholders and what are its capital spending plans?
In Fiscal 2025 the company repurchased 5,252,003 shares for $1,123.8 million and paid $731.8 million in dividends. The company expects to return approximately $720 million through cash dividends in Fiscal 2026 and $4.0 billion in share repurchases over the next three fiscal years. Capital expenditures were $1,214.1 million in Fiscal 2025 and are planned at approximately $1.2 billion for Fiscal 2026, including about $1.0 billion for the Beer segment.
What is the company's debt position?
Total debt outstanding as of February 28, 2025 was $11,497.7 million, a decrease of $381.6 million from February 29, 2024. The company was in compliance with its covenants, with a minimum interest coverage ratio of 2.5x and a maximum net leverage ratio of 4.0x under its 2022 Credit Agreement. Available revolving credit capacity was $1,430.7 million at February 28, 2025.
06—Continue