1. Revenue Performance: Constellation Brands reported revenues of $2.92 billion for Q2 2025, marking a 2.89% year-over-year increase, and a 9.66% quarter-over-quarter increase. The Beer division delivered a substantial sales uplift of 6%, while Wine and Spirits experienced a decline of 12%.
2. Profitability: The gross profit ratio for Q2 was 51.8%, with operating income negatively impacted by a goodwill impairment loss attributed to the Wine and Spirits division, while Beer maintained an operating margin of 42.6%.
3. Cash Flow: The company generated a net cash flow from operating activities of $1.18 billion, leading to a free cash flow of $854 million for the quarter. This robust cash generation reflects strong EBITDA and controlled capital expenditures.
4. Balance Sheet Health: Total liabilities stood at $14.92 billion against total assets of $23.08 billion, translating to a debt-to-equity ratio of 1.55, indicating a relatively leveraged position. The current ratio of 1.25 and quick ratio of 0.53 suggest adequate liquidity, although the cash ratio at 0.022 highlights a low immediate liquidity position.