Constellation Brands Q1 2026 earnings decline due to aluminum tariffs

From CNBC: 2025-07-01 16:53:00

Constellation Brands reports lower-than-expected earnings and revenue due to aluminum tariffs imposed by President Trump. Despite this, the company maintains its fiscal 2026 forecast, with shares falling less than 1% in extended trading. Trump’s tariffs on imported beer and aluminum impact Constellation’s beer business, which saw a 5.8% drop in net sales.

In the fiscal first quarter, Constellation’s net income fell to $516.1 million, down from $877 million a year earlier. Operating margin decreased by 1.5% due to higher aluminum costs. The company’s beer business experienced a 3.3% decline in shipment volumes attributed to softer consumer demand, particularly among Hispanic consumers concerned about Trump’s immigration policy.

Constellation’s fiscal 2026 earnings per share are projected to be between $12.60 and $12.90, with expected organic net sales declining 2% to rising 1%. The company’s beer portfolio, including popular brands like Corona and Modelo, has been impacted by Trump’s trade duties on aluminum and canned beer imports, leading to weaker demand and lower sales.



Read more at CNBC: Constellation Brands (STZ) Q1 2026 earnings