Constellation Brands exceeds 3Q 2025 forecasts thanks to its premium beers

Constellation Brands reported better-than-expected third-quarter results on Wednesday, driven by strong demand for its Modelo Especial and Corona beer brands, in a complex environment for the alcohol sector in the United States. Following the announcement, the company’s shares rose approximately 3% in after-hours trading, although they have accumulated a 37% drop in 2025.

The company has benefited from the recovery in consumption of popular beers such as Pacifico, Victoria, Corona Sunbrew, and Corona Familiar, supported by a more competitive pricing policy and more effective marketing strategies, defying the general weakness of the U.S. alcoholic beverage market. Other competitors in the sector, such as whiskey producer Brown-Forman, also managed to exceed sales forecasts and maintained their annual estimates in their latest results.

In the quarter ended November 30, Constellation Brands recorded net sales of $2.22 billion, 10% less than in the same period of the previous year, but better than expected by analysts, who anticipated a 12.4% drop. Adjusted profit was $3.06 per share, significantly exceeding the forecast of $2.63.

Beer sales decreased by 1% due to a lower volume of shipments, although the drop was significantly less than the 7% decline recorded in the previous quarter. Alcohol consumption continues to be pressured by the reduction in spending among Hispanic consumers, in a context marked by the immigration policies of U.S. President Donald Trump, as well as by economic uncertainty and the containment of spending on higher-priced wines and spirits.

In addition, the president’s decision to double tariffs on imported aluminum, raising them from 25% to 50%, has had a relevant impact on companies in the sector, including Constellation Brands, since 41% of the packaging of its beer produced in Mexico depends on this material.

Looking ahead to the close of the fiscal year, the company slightly lowered its forecast for annual earnings per share, which it now places between $9.72 and $10.02, compared to the previous range of $9.86 to $10.16. It also reiterated that it expects an organic drop in net sales of between 4% and 6% in the year ending February 28, with a decrease of 2% to 4% in beer and a more pronounced contraction, of 17% to 20%, in wines and spirits.