BrownForman Corporation (BF-A) Q3 2025 Earnings Report

BrownForman reported QQ3 2025 revenue of $1,035.0 million, down 3.18% year over year and down 5.48% quarter over quarter. Gross profit was $619.0 million with a gross margin of 59.8%, and operating income of $280.0 million (operating margin 27.1%). Net income totaled $270.0 million, or $0.57 per share, down 5.0% year over year but up 3.64% sequentially. EBITDA stood at $385.0 million (EBITDA margin 37.2%). The company generated $317.0 million of cash from operating activities and free cash flow of $272.0 million, funding $107.0 million in dividends and leaving cash and cash equivalents of $620.0 million at period end. Net debt was $2.264 billion, with an interest-coverage ratio of 9.03x, underscoring solid cash generation despite a modest top-line headwind. From a balance-sheet perspective, total assets were $8.071 billion with total liabilities of $4.248 billion and total stockholders’ equity of $3.823 billion. Liquidity remains ample (current ratio 3.49; quick ratio 1.49). A notable working-capital dynamic is the elevated inventory days outstanding (approximately 530 days) and a low inventory turnover (0.170x), suggesting a potential area for working-capital optimization. Management did not publish formal forward guidance in the provided data, but the strategic emphasis appears to be on premiumization, pricing discipline, and international growth, with ongoing execution in the brand portfolio and cost-management initiatives.