Treasury Wine Estates (ASX:TWE): FY26 Results, TWE Ascent Restructuring and F27 EBITS Guidance

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Treasury Wine Estates (ASX:TWE): FY26 Results, TWE Ascent Restructuring and F27 EBITS Guidance

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Highlights

Treasury Wine Estates (ASX:TWE) reported FY26 EBITS of A$492.3 million, with net sales revenue of A$2.6 billion.
Underlying NPAT was A$275.3 million, while material items led to a statutory loss of A$1,077.8 million.
Penfolds EBITS was A$404.3 million, with China depletions up 34.7% in constant currency.
F27 EBITS is expected to be at least equal to F26, including about A$40 million of Ascent savings.

Treasury Wine Estates Limited is a global wine company whose portfolio centres on the Penfolds, DAOU and Matua brands, alongside regional brands. The company is midway through a portfolio and cost restructuring known as TWE Ascent, and its FY26 results, released in August, set out the financial effect of that program and the F27 earnings outlook.

Company Business

Treasury Wine Estates has organised its portfolio into Power Brands and Regional Heroes. The Power Brands are Penfolds, DAOU and Matua, while the Regional Heroes are a group of focused brands in the United States and Australia. Non-priority brands are being managed down or divested, with the portfolio planned to fall from more than 70 brands to about 30.

For Treasury Wine Estates (ASX:TWE), financial reporting in FY26 was split across three divisions; the divisions were Penfolds, Treasury Americas and Treasury Collective. From 1 October 2026 the company moved to a four-region operating model covering the Americas; Australia, New Zealand and Europe; Greater China; and Emerging Markets.

Recent Development

In August 2026, the company reported results for the year ended 30 June 2026. EBITS of A$492.3 million was slightly above the A$480 million to A$490 million guidance range cited in the results materials. The Board did not declare a final dividend, and dividends remain suspended to preserve capital and reduce leverage.

Treasury Wine Estates (ASX:TWE) also recorded material items of A$1,308.7 million after tax, mainly non-cash impairments of United States-based assets. An on-market share repurchase program, which had acquired A$30.5 million of shares in the first quarter of FY26, has been cancelled. The company said a strategic and operational review of the Americas business is continuing with external advisers, and that the sale of the San Luis Obispo winery has been completed.

The annual general meeting was scheduled for 15 October 2026.

Financial Performance and Sector Context

Net sales revenue for FY26 was A$2,561.0 million, down 12.8%, while net sales revenue per case rose 3.2% to A$133.6. EBITS fell 36.1% to A$492.3 million and the EBITS margin was 19.2%, down 7.0 percentage points. NPAT before material items was A$275.3 million, down 41.5%, and earnings per share before material items were 34.1 cents, down 41.3%. Net operating cash flow was A$535.3 million.

By division, Penfolds recorded EBITS of A$404.3 million, down 15.2%, on a margin of 40.5%. Treasury Americas delivered EBITS of A$90.2 million, down 61.4%, and Treasury Collective A$68.0 million, down 47.8%. Penfolds depletions rose 34.7% in China, 18.1% in Asia excluding China and 5.7% in Australia on a constant-currency basis, although part of the China increase reflected parallel-import volumes moving into authorised channels. Total United States depletions rose 4.2%, while the global commercial portfolio declined 20.2%, mainly because of the United Kingdom.

Closing net debt was A$1,782.4 million, equal to 2.8 times net debt to EBITDAS, which management expects to be the peak, with a target below 2.0 times by the end of F28. Liquidity was A$1.3 billion.

The wine sector continues to deal with shifting consumer preferences, distributor inventory rebalancing, tariffs and currency movements.

Risks to Consider

The company identified partner performance and market concentration, mismatched grape supply and demand, and changing consumer preferences as risks in focus. Other risks include execution of TWE Ascent, which carries estimated one-off costs of A$830 million to A$870 million before tax, changes to United States distribution arrangements, production cost inflation, vintage variation, geopolitical instability and parallel imports into China. Treasury Wine Estates (ASX:TWE) also carries exposure to AUD/USD and AUD/GBP movements, partly hedged for F27.

What to Watch Next

Operational milestones include the early results of the regional operating model, completion of China customer inventory rebalancing during F27, and completion of United States rebalancing by the first half of F28. The company has guided to about 55% of F27 EBITS falling in the second half. TWE Ascent savings are targeted at A$100 million a year by F29, with about A$40 million expected in F27. No completion date was stated for the Americas review.

Key Insights

Treasury Wine Estates (ASX:TWE) reported lower FY26 earnings, large non-cash impairments and elevated leverage, while Penfolds depletions grew in Asia and Australia. F27 EBITS is guided to be at least equal to F26, with regional ranges set for Greater China, Emerging Markets, the Americas and ANZ and Europe. Monitoring points include debt reduction, inventory rebalancing, Ascent cost delivery and the Americas review.

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