The example of the model, a beer imported from Mexico, is on sale at a grocery store in Arlington, Virginia on February 3, 2025, following the announcement of tariffs by US President Donald Trump on important goods from Canada and Mexico.
Saul Roeve | AFP | Getty Images
Constellation Brand On Tuesday, quarterly revenue and revenue that missed analyst estimates were reported as aluminum tariffs focused on profitability.
Still, brewers have repeated their forecasts for fiscal year 2026, showing confidence that they can achieve their financial goals despite lower quarterly performance and higher tariffs than expected.
The company’s shares fell less than 1% in extended transactions. The stock has dumped more than 20% of its value this year, fuelled by concerns about how the higher obligations imposed by President Donald Trump will affect beer demand.
Based on an analyst survey by LSEG, the company reported the following compared to what Wall Street had expected:
Earnings per share: $3.22 adjusted vs. $3.31 expected revaluation: $2.52 billion vs. $2.555 billion
The report covering the three months ended May 31st includes the start of Trump’s tariffs on canned beer imports in early April. He also hiked 25% of the aluminum trade operations in mid-March and 50% in early June.
Imported beer and aluminum are both important to Constellation’s beer business, accounting for around 80% of the company’s overall revenue. Constellation’s beer portfolio only includes Mexican imports such as Corona, Pacifico and Modelo Espial, which overtook Bud Light as the top-selling US beer brand two years ago.
Constellation reported first-quarter net income of $877 million a year ago, or $516.1 million, or $2.90 per share. Constellation’s operating margin fell by 150 basis points (1.5%) in the quarter, with some higher aluminum costs.
Excluding the items, the brewers won $3.22 per share.
Net sales fell 5.8% to $2.522 billion, driven by a decline in demand for beer and the sale of Svedka Vodka’s company.
CEO Bill Newlands said in a statement that Constellation still faces softer consumer demand. He attributed weaker sales to “unstructured socioeconomic factors.” In Constellation’s beer business, shipments fell by 3.3% as consumer demand fell.
Last quarter, Newlands said Hispanic consumers were buying less company beer due to fear of Trump’s immigration policy. According to the company, about half of Constellation’s beer sales come from Hispanic consumers.
Constellation executives are expected to provide further commentary in the quarter during the company’s conference call on Wednesday at 10:30am ET.
For fiscal year 2026, Constellation continues to expect comparable earnings of $12.60 to $12.90 per share. The company predicts organic net sales range from a 2% decline to a 1% rise.
