Earnings call briefFiscal second-quarter 2027

Constellation Brands now expects Veracruz to come online in fiscal 2028

Once Veracruz is online, Constellation Brands said annualized depreciation would be about $75 million, a margin headwind of about 90 basis points.

GetSignal Constellation Brands STZ

On its fiscal second-quarter 2027 call, Constellation Brands said it now expects to bring Veracruz online at the beginning of fiscal 2028, after previously expecting this fiscal year. CFO Garth Hankinson said the site is about 85% done, with work still to be done on utilities and roads.

Hankinson said the depreciation and margin impact would start when Veracruz is put in service.

Quotes from the call

“When we do bring that online, the depreciation impact on an annualized basis will be about $75 million.”

Garth Hankinson, CFO

Key facts from the call

Expected Veracruz in service
Beginning of fiscal 2028
Expected annualized depreciation increase at Veracruz once in service
About $75 million
Expected annualized margin headwind at Veracruz
About 90 basis points
Expected second-half beer operating margin
34.5% to 35.5%

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Source: Constellation Brands' fiscal second-quarter 2027 earnings call, October 7, 2026.

Written by GetSignal with AI from the company's earnings call.

Not investment advice.

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