The Treasury Wine Estates Ltd (ASX: TWE) share price is in focus today after the company announced a further $558.4 million post-tax non-cash write-down on its US assets, but confirmed that underlying earnings (EBITS) for FY26 are ahead of earlier guidance.
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What did Treasury Wine Estates report?
- Additional post-tax material item charge of $558.4 million for FY26, relating to impairment of US assets and brands
- Unaudited FY26 Group EBITS expected at $492.3 million, above prior guidance of $480–$490 million
- FY26 leverage expected to peak at 2.8x, an improvement from the 2.9x previously guided
- FY27 EBITS expected to be at least equivalent to FY26
- No change to previously announced Ascent transformation program for the US business
What else do investors need to know?
Treasury Wine Estates is undertaking a strategic review of its Americas business, aimed at improving returns and aligning supply with softer US wine demand. This includes fallowing vineyards and writing down inventory built up from past harvests, with most of the impairment relating to vineyards, wineries, and brands like DAOU and Frank Family Vineyards.
The company has reiterated the momentum behind its global premium brands, highlighting Penfolds as a strong performer helping to offset weaker results from its US operations. TWE's board and management continue to review options for its brand portfolio and asset base in the Americas.
What did Treasury Wine Estates management say?
Treasury Wine's CEO, Sam Fischer, said:
As we announced in June, we are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market. Both our Ascent transformation program and strategic review of potential options for the future of our US business are progressing well.
The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds, DAOU and Frank Family Vineyards, and we expect to report F26 EBITS ahead of the guidance we shared in June.
What's next for Treasury Wine Estates?
The operational and strategic review of the Americas business remains ongoing, with external advisers assisting in assessing all available options. TWE plans to implement changes to its vineyard and inventory footprint over the next 12 months, aiming to boost medium-term profitability in the United States.
Management is sticking to its guidance that FY27 underlying earnings should be at least in line with FY26, expecting continued strength from the premium Penfolds brand and delivery of benefits from the Ascent program. The full audited FY26 results will be released on 13 August 2026.
Treasury Wine Estates share price snapshot
The Treasury Wine share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 30%.
