Note: A list of defined terms, including definitions of reported, comparable, adjusted, and organic as well as reconciliations of non-GAAP financial

measures, are contained elsewhere in this release. Comparable, adjusted, and organic amounts are non-GAAP financial measures.

(1)Year ended and three months ended February 28, 2025, includes (i) $711.2 million and $252.1 million of net sales, respectively, and (ii) $244.7 million and $98.4 million of CAM, respectively, that are no longer part of the Wine & Spirits segment results due to the Wine & Spirits Divestitures.

(2)Year ended and three months ended February 28, 2025, includes adjustments to remove volumes associated with the Wine & Spirits Divestitures (see below for applicable periods).

Reported basis are derived from amounts as reported under GAAP. Comparable basis are amounts which exclude comparable adjustments, as they are not reflective of core operations of the segments. The company’s measure of segment profitability excludes comparable adjustments, which is consistent with the measure used by management to evaluate results. The company discusses various non-GAAP measures in this release. Financial statements, as well as supplemental schedules and tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in this release.

The statements made under the heading Outlook and all statements other than statements of historical fact set forth in this release, including statements regarding our business strategy and objectives, the macroeconomic and operating environments and socioeconomic backdrop, our strategic and capital allocation priorities and targets, positioning our business for long-term success, future operations, financial position, expected net sales, operating margin, tax rate, operating cash flow, capital expenditures, free cash flow, EPS, future payments of dividends, amount, manner, and timing of share repurchases under the share repurchase authorization, and prospects, plans, and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements that involve risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those set forth in, or implied by, the Projections.

When used in this release, the words “anticipate,” “believe,” “expect,” “intend,” “outlook,” “will,“ “encouraged,” “approach,” and similar expressions are intended to identify Projections, although not all Projections contain such identifying words. All Projections speak only as of the date of this release. We undertake no obligation to update or revise any Projections, whether as a result of new information, future events, or otherwise. The Projections are based on management’s current estimates, expectations, plans, and timetables, and, unless otherwise noted, do not take into account the impact of any future acquisition, investment, merger, or other business combination, divestiture (including any associated amount of incremental contingent consideration payment paid or received), cost savings, restructuring, operating, or efficiency initiatives, tariff changes, impacts, and responses, or financing or share repurchases that may be completed after the issuance of this release. Although we believe that the estimates, expectations, plans, and timetables reflected in the Projections are reasonable, we can give no assurance that such estimates, expectations, plans, and timetables will prove to be correct. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, the Projections contained in this release are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)
(unaudited)

			February 28, 2026						February 28, 2025
ASSETS
Current assets:
Cash and cash equivalents			$	102.4					$	68.1
Accounts receivable			658.2						736.5
Inventories			1,433.9						1,437.2
Prepaid expenses and other			711.8						561.1
Assets held for sale			—						913.5
Total current assets			2,906.3						3,716.4
Property, plant, and equipment, net			8,520.9						7,409.8
Goodwill			5,233.9						5,126.8
Intangible assets			2,533.0						2,532.3
Deferred income taxes			1,370.3						1,805.3
Other assets			1,336.1						1,061.7
Total assets			$	21,900.5					$	21,652.3
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Short-term borrowings			$	272.0					$	806.7
Current maturities of long-term debt			603.6						1,402.0
Accounts payable			960.2						939.8
Other accrued expenses and liabilities			854.0						886.7
Total current liabilities			2,689.8						4,035.2
Long-term debt, less current maturities			9,692.9						9,289.0
Deferred income taxes and other liabilities			1,130.9						1,193.3
Total liabilities			13,513.6						14,517.5
CBI stockholders’ equity			8,082.4						6,882.0
Noncontrolling interests			304.5						252.8
Total stockholders’ equity			8,386.9						7,134.8
Total liabilities and stockholders’ equity			$	21,900.5					$	21,652.3

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)
(unaudited)

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF REPORTED AND ORGANIC NET SALES
(in millions)
(unaudited)

For periods of acquisition, we define organic net sales as current period reported net sales less net sales of products of acquired businesses reported for the current period, as appropriate. For periods of divestiture, we define organic net sales as prior period reported net sales less net sales of products of divested businesses reported for the prior period, as appropriate. We provide organic net sales because management uses this information in monitoring and evaluating the underlying business trends of our core operations. Wine and Spirits net sales are provided by channel and market categories as management uses this information to monitor this business. In addition, we believe this information provides our investors and other external users valuable insight on underlying business trends and results and, in the case of Wine and Spirits, the underlying composition of segment net sales and results, in order to evaluate year-over-year financial performance.

The divestitures impacting the period below consist of (i) the SVEDKA Divestiture and (ii) the 2025 Wine Divestitures.

(1)For the applicable periods:

(2)Wine and Spirits net sales by channel and market categories are as follows:

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUPPLEMENTAL SHIPMENT AND DEPLETION INFORMATION
(in millions)
(unaudited)

(1)Includes adjustments to remove divestiture volumes for the applicable periods:

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
SUMMARIZED SEGMENT, INCOME (LOSS) FROM UNCONSOLIDATED INVESTMENTS,
AND DEPRECIATION AND AMORTIZATION INFORMATION
(in millions)
(unaudited)

Management excludes items that affect comparability from its evaluation of the results of each operating segment as these comparable adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these comparable adjustments. See page 14 for further information on comparable adjustments.

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data)
(unaudited)

We report our financial results in accordance with GAAP. However, non-GAAP financial measures, as defined in the reconciliation tables below, are provided because management uses this information in evaluating the results of our core operations and/or internal goal setting. In addition, we believe this information provides our investors and other external users valuable insight on underlying business trends and results in order to evaluate year-over-year financial performance. See the tables below for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to GAAP financial measures for the periods presented. Non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, our reported results prepared in accordance with GAAP.

(1)Amount reflects gross profit less marketing that are no longer part of the results for the applicable periods:

(2)Comparable EPS may not sum due to rounding as each item is computed independently. The comparable adjustments and comparable EPS are calculated on a fully dilutive basis. On a comparable basis, for the three months ended and year ended February 28, 2025, we have included 0.259 million and 0.429 million weighted average common shares outstanding, respectively, using the treasury stock method, as the effect of including these would have been anti-dilutive on a reported basis.

The comparable adjustments that impacted comparability in our results for each period are as follows:

Undesignated commodity derivative contracts
Net gain (loss) on undesignated commodity derivative contracts represents a net gain (loss) from the changes in fair value of undesignated commodity derivative contracts. The net gain (loss) is reported outside of segment operating results until such time that the underlying exposure is recognized in the segment operating results. At settlement, the net gain (loss) from the changes in fair value of the undesignated commodity derivative contracts is reported in the appropriate operating segment, allowing the results of our operating segments to reflect the economic effects of the commodity derivative contracts without the resulting unrealized mark to fair value volatility.

Strategic business reconfiguration costs
We recognized costs in connection with certain activities which are intended to streamline, increase efficiencies, and reduce our cost structure.

Flow through of inventory step-up
In connection with acquisitions, the allocation of purchase price in excess of book value for certain inventories on hand at the date of acquisition is referred to as inventory step-up. Inventory step-up represents an assumed manufacturing profit attributable to the acquired business prior to acquisition.

Asset impairment and related expenses
Largely in connection with (i) the commitment to dismantling and abandonment of certain aged long-lived assets at the Obregón Brewery (year ended February 28, 2026), (ii) the 2025 Wine Divestitures we recognized contract liabilities and inventory obsolescence expenses, partially offset by changes in then-existing net assets held for sale (year ended February 28, 2026), and (iii) certain then-existing wine and spirits assets that met held for sale criteria (three months ended and year ended February 28, 2025).

We recognized costs in connection with the 2025 Restructuring Initiative.

Transition services agreements activity
We recognized costs in connection with transition services agreements related to the previous sales of portions of our Wine and Spirits Business.

We recognized costs primarily in connection with severance benefits in accordance with the terms of a pre-existing employment agreement.

Goodwill and intangible assets impairment
We recognized a goodwill and intangible assets impairments in connection with continued negative trends within our Wine and Spirits Business primarily attributable to our U.S. wholesale market driven by declines in both the overall wine market and in our then-owned mainstream and premium brands.

Gain (loss) on sale of business
We recognized a net gain (loss) largely in connection with the (i) 2025 Wine Divestitures (year ended February 28, 2026) and (ii) SVEDKA Divestiture (three months ended and year ended February 28, 2025).

Other gains (losses)
Primarily includes the following:

Includes the following:

We (i) recognized losses from the write-off of unamortized discount and debt issuance costs in connection with the repayment of outstanding senior notes for the year ended February 28, 2026, and (ii) wrote-off accrued interest income related to convertible notes issued to certain investments for the years ended February 28, 2026, and February 28, 2025.

The effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the comparable adjustment was recognized. We recognized a benefit from income taxes for the three months ended and year ended February 28, 2025, resulting from the goodwill impairment, net of the non-deductible portion. Comparable adjustments, (Provision for) benefit from income taxes also include items solely impacting income taxes and consist of the following (expense) and benefit adjustments:

The noncontrolling interest portion recognized as a result of a net income tax expense for the resolution of various tax examinations and assessments related to prior periods.

(1)The comparable adjustment effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the adjustment was recognized.

(2)Effective tax rate is not considered a GAAP financial measure, for purposes of this reconciliation, we derived the reported GAAP measure based on GAAP results, which serves as the basis for the reconciliation to the comparable non-GAAP financial measure.

(1)			Comparable adjustments include: (2) (3)			Estimated for the Year Ending February 28, 2027						Actual for the Year Ended February 28, 2026
			Transition services agreements activity			$	15					$	35.7
			2025 Restructuring Initiative			$	8					$	72.2
			Flow through of inventory step-up			$	1					$	4.1
			Other (gains) losses			$	(3)					$	(27.9)
			Asset impairment and related expenses			$	—					$	109.8
			(Gain) loss on sale of business			$	—					$	31.9
			Strategic business reconfiguration costs			$	—					$	15.2
			CEO severance and transition benefits			$	—					$	7.8
			Net (gain) loss on undesignated commodity derivative contracts			$	—					$	(23.6)
			Settlements of undesignated commodity derivative contracts			$	—					$	(3.4)
(2)			Amount reflects gross profit less marketing attributable to the 2025 Wine Divestitures for the period March 1, 2025, through June 1, 2025.
(3)			May not sum due to rounding.

EPS Guidance			Guidance Range for the Year Ending February 28, 2027												Actual for the Year Ended February 28, 2026
Forecasted EPS (GAAP)			$	11.10					$	11.80					$	9.61
Comparable adjustments (1)			0.10						0.10						2.21
Forecasted comparable EPS (Non-GAAP) (2)			$	11.20					$	11.90					$	11.82

Unless the context otherwise requires, the terms “Company,” “CBI,” “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries.