Constellation Brands

None of the serious warning signs we check for were found. 1 thing worth knowing.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 22 Apr 2026, plus the 10-Q filed 1 Jul 2026 and 8 later 8-Ks.

• One big customer

  Worth knowing

  One customer brings in a big share of sales: 27.5% last year. Losing that customer would hurt.

  “Net sales to Customers which individually represent 10% or more of our net sales, and the associated accounts receivable from these Customers as a percentage of our total accounts receivable, are as follows: For the Years Ended February 28, 2026 | February 28, 2025 | February 29, 2024 Reyes Beer Division entities Net sales | 27.5 | 25.4 | 25.1”

  From the 10-K filed 22 April 2026, Item 8. Financial Statements and Notes (table). Read it in the filing

• Sales have barely grown: 1.2% a year.

Whether the price already reflects the risks is what the deep dive is for.

• President and Chief Executive Officer transition

  Could happen

  Nicholas Fink became our President and Chief Executive Officer on April 13, 2026. Our future performance will depend, in part, on the successful transition of Mr. Fink as our new President and Chief Executive Officer. Leadership transitions and the onboarding process can be inherently difficult to manage, will take time, and could result in changes in our business strategy, operations, processes, and workforce. If we do not successfully manage this transition, it may cause disruption to our business and be viewed negatively by various stakeholders, including our consumers, Customers, stockholders, employees, and/or suppliers. Our future performance will also continue to depend on the services and contributions of our other senior management and key employees to execute on our strategy and business plans and to identify and pursue new opportunities and product innovations. The loss of services of senior management or other key employees and the onboarding and transition of new senior leaders and key employees could significantly delay or prevent the achievement of our strategic objectives. Each of these risks could adversely affect our business, liquidity, financial condition, and/or results of operations.

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• Economic and other uncertainties associated with our international operations, including tariffs

  • retaliatory or other tariffs and actions imposed on certain U.S. goods, including restrictions on beverage alcohol sales from U.S. producers imposed by some Canadian provinces; and • subsequent modifications and delays to or invalidation of various tariffs and associated refund procedures, litigation, and developments, including impacts from the U.S. Supreme Court decision invalidating the use of IEEPA to authorize certain tariffs.

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• International operations, worldwide and regional economic trends and financial market conditions, geopolitical uncertainty, or other governmental rules and regulations

  Could happen

  • disruption from wars and military conflicts, including the conflict in the Middle East, terrorism, civil unrest, kidnapping, drug-related, workplace, or other types of violence, and other criminal and cartel activities;