BrownForman BF-B reported a softer Q4 2025, with revenue of $894 million and a four-quarter total revenue of approximately $3.98 billion, down 7.3% versus the prior-year period. The quarter delivered a robust gross margin of about 57.4% but net income and EPS collapsed versus the prior year, driven by a compressed operating margin and higher SG&A intensity. Net income for Q4 was $146 million and diluted EPS was $0.309, down roughly 45% YoY and QoQ. For the full four-quarter period, operating income totaled about $1.11 billion, and net income approached $869 million, while FCF registered $102 million for the year and cash and marketable positions stood at about $463 million with net debt near $2.29 billion.
The company continues to benefit from a high-quality, premium brand portfolio (centered on Jack Daniel’s and related whiskey brands) and a disciplined cost structure that supports positive free cash flow and a resilient dividend framework. However, the year showed notable margin compression and a soft top-line backdrop, reflecting broader consumer discretionary pressures and channel mix that weigh on profitability. Management commentary is expected to emphasize premiumization, pricing power, and international expansion as key levers for 2026, balanced against ongoing macro headwinds and input-cost dynamics.