Note: A list of defined terms, including definitions of reported, comparable, and organic, as well as reconciliations of non-GAAP financial measures are contained elsewhere in this release. Comparable and organic amounts are non-GAAP financial measures.

(1)Three months ended May 31, 2025, includes (i) $142.0 million of net sales and (ii) $24.5 million of CAM that are no longer part of the Wine and Spirits segment results due to the 2025 Wine Divestitures.

(2)Three months ended May 31, 2025, includes adjustments to remove volumes for associated with the 2025 Wine Divestitures (see below for applicable period).

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 consumer environment, our strategic and capital allocation priorities and targets, our brand strength, commercial execution, consumers connections, understanding of evolving consumer needs, and investing behind our strategic priorities, our positioning to drive sustainable organic growth while maintaining healthy investment in our brands, construction activities at our new brewery in Veracruz, our ability to generate strong cash flow and to balance investments for growth with shareholder returns, 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,” “ability,” “enable,” 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)

			May 31, 2026						February 28, 2026
ASSETS
Current assets:
Cash and cash equivalents			$	96.6					$	102.4
Accounts receivable			726.7						658.2
Inventories			1,452.6						1,433.9
Prepaid expenses and other			765.1						711.8
Total current assets			3,041.0						2,906.3
Property, plant, and equipment, net			8,510.2						8,520.9
Goodwill			5,248.9						5,233.9
Intangible assets			2,536.8						2,533.0
Deferred income taxes			1,459.2						1,370.3
Other assets			1,312.6						1,336.1
Total assets			$	22,108.7					$	21,900.5
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Short-term borrowings			$	336.3					$	272.0
Current maturities of long-term debt			1,102.6						603.6
Accounts payable			1,000.1						960.2
Other accrued expenses and liabilities			890.0						854.0
Total current liabilities			3,329.0						2,689.8
Long-term debt, less current maturities			9,094.9						9,692.9
Deferred income taxes and other liabilities			1,135.0						1,130.9
Total liabilities			13,558.9						13,513.6
CBI stockholders’ equity			8,255.6						8,082.4
Noncontrolling interests			294.2						304.5
Total stockholders’ equity			8,549.8						8,386.9
Total liabilities and stockholders’ equity			$	22,108.7					$	21,900.5

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 in order to evaluate year-over-year financial performance.

(1)For the applicable period:

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

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

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 period:

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.

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.

Strategic business reconfiguration costs, net
We recognized net costs in connection with activities intended to streamline operations, improve efficiencies, and reduce our cost structure.

Asset impairment and related expenses
We recognized (i) an impairment on assets held for sale in connection with a divestiture (three months ended May 31, 2026) and (ii) contract liabilities and inventory obsolescence expenses associated with the 2025 Wine Divestitures, partially offset by changes in then-existing net assets held for sale (three months ended May 31, 2025).

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 in connection with the 2025 Restructuring Initiative.

We recognized losses from the write-off of unamortized discount and debt issuance costs in connection with the redemption of outstanding senior notes for the three months ended May 31, 2026.

The effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the comparable adjustment was recognized. Comparable adjustments, (Provision for) benefit from income taxes also include items solely impacting income taxes and consist of the following (expense) and benefit adjustments:

(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.

Free cash flow, as defined in the reconciliation below, is considered a liquidity measure and is considered to provide useful information to investors and other external users about the amount of cash generated, which can then be used, after required debt service and dividend payments, for other general corporate purposes. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period.

			Guidance Range for the Year Ending February 28, 2027
Net cash provided by operating activities (GAAP)			$	2,400					$	2,500
Purchase of property, plant, and equipment			(800)						(800)
Free cash flow (Non-GAAP)			$	1,600					$	1,700
			Three Months Ended
			May 31, 2026						May 31, 2025
Net cash provided by operating activities (GAAP)			$	661.8					$	637.2
Purchase of property, plant, and equipment			(177.2)						(192.8)
Free cash flow (Non-GAAP)			$	484.6					$	444.4

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