STZ

EX-99.1

2 stzex991_83120268kearnings.htm

EX-99.1

Document

Exhibit 99.1

Delivers EPS Growth Driven by Net Sales and Business Division Operating Income Growth

Beer Business Accelerates Category Leading Share Gains Across U.S. Tracked Channels

Returns an Additional $400 Million to Shareholders Through Share Repurchases and Dividends

Net SalesOperating Income (Loss)EPS

Second Quarter Fiscal 2027 Financial Highlights | in millions, except per share data

Reported$2,633$805$3.32

% Change6%(8%)25%

Comparable$2,633$897$3.74

% Change6%1%3%

Note: A list of defined terms, including definitions of reported, comparable, and organic, as well as reconciliations of non-GAAP financial measures are contained elsewhere in this release. Comparable and organic amounts are non-GAAP financial measures.

HIGHLIGHTS

•Generates reported EPS of $3.32 and comparable EPS of $3.74

•Beer Business delivers both net sales and operating income growth of 5% and 1%, respectively, while leading the category in dollar and volume share gains, outperforming the total beer category by 4 percentage points in year-over-year dollar and volume sales across Circana U.S. tracked channels

•Wine and Spirits Business delivers net sales growth of 17% and depletions growth of 10.2%, outperforming the total wine and spirits category in both dollar and volume sales in Circana U.S. tracked channels as the wine portfolio was the #3 dollar share gainer in the total wine category

•Generates year-to-date operating cash flow of $1.5 billion and free cash flow of $1.1 billion, a decrease of 1% and an increase of 4%, respectively

•Updates fiscal 2027 reported EPS outlook to $11.85 - $12.55, and reaffirms comparable EPS outlook of $11.20 - $11.90, operating cash flow target of $2.4 - $2.5 billion, and free cash flow target of $1.6 - $1.7 billion

•Repurchases $530 million of shares year-to-date through September 2026

•Declares quarterly cash dividend of $1.03 per share of Class A Common Stock

“During the second quarter, our portfolio of iconic brands continued to resonate with consumers. We have sharpened our execution and increased investment across the business, and are beginning to see early returns through accelerating dollar and volume share gains in both our Beer and Wine & Spirits businesses relative to the first quarter. As a result, we were the #1 dollar share gainer in beverage alcohol

“Through the first half of fiscal 2027, our strong cash flow generation enabled us to continue executing our disciplined and balanced capital allocation priorities. We maintained our target comparable net leverage ratio of ~3.0x, returned more than $800 million to shareholders through share repurchases and dividends, and continued to invest in our business through increased

during the second quarter. Looking ahead, we remain focused on building on this momentum by expanding our reach across more consumers and occasions, while investing behind the brands and capabilities that will support our next phase of growth.”

brand marketing support. As we look to the second half of the year, we remain committed to supporting long-term growth, maintaining financial flexibility, and returning capital to shareholders.”

Nicholas Fink - President & CEO

Garth Hankinson - Executive Vice President & CFO

Constellation Brands, Inc. Q2 FY 2027 Earnings Release

#WORTHREACHINGFOR I 1

BEER

ShipmentsDepletionsNet Sales Operating

Income (Loss)

Three Months Ended | in millions; branded product, 24-pack, 12-ounce case equivalents

August 31, 2026123.9$2,473.6$964.2

August 31, 2025117.4$2,345.0$951.6

% Change5.5%(0.6%)5%1%

HIGHLIGHTS

•Net sales increased 5% driven by a 5.5% increase in shipment volumes.

•Operating margin decreased 160 bps to 39.0% as lower tariff expenses and favorable fixed cost absorption were more than offset by increased marketing investment and other SG&A spend.

•Depletions decreased 0.6% as declines for Modelo Especial of approximately 2% and Corona Extra of approximately 5% were partially offset by growth from Pacifico, Victoria, and the Modelo Chelada brands of approximately 19%, 15%, and 5%, respectively. One additional sell day during the quarter was largely offset by a shift in the timing of the Labor Day holiday, resulting in minimal impact on underlying depletion trends.

•Our Beer Business ranked as the #1 dollar and volume share gainer in Circana U.S. tracked channels and had 5 of the top-15 dollar share gaining brands across the entire U.S. beer category:

◦Modelo Especial maintained its position as the #1 brand by dollar sales and was the #3 dollar share gainer. Within the brand family, Modelo Chelada Limón y Sal was the #6 dollar share gainer;

◦Corona Extra remained a top-five brand by dollar sales, while Corona Familiar was the #14 dollar share gainer;

◦Pacifico and Victoria were the #2 and #10 dollar share gainers, respectively, and Pacifico became a top-10 brand by dollar sales.

Note: totals may not sum due to rounding

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