Treasury Wine Estates shares rally after reaffirming FY26 earnings guidance

The news: Shares in Treasury Wine Estates rallied in early trade after the global wine distributor reaffirmed its FY26 and FY27 earnings guidance at its investor day presentation.

Shares jumped 10% to $4.53 at 11:13am AEST.

The context: The company projects FY26 earnings before interest and tax (EBIT) to be between $480 million to $490 million, while FY27 earnings are expected to be at least equivalent to FY26 as it continues to focus on rebalancing its inventory levels across the US and China.

The company also outlined a target to lift long-term EBIT margins to 25% or more, with revenue growth expected from FY28 once customer inventory rebalances.

Penfold’s China customer inventory cover has declined by around 150,000 cases in FY26. However, the company expects the rebalancing to be completed in FY27. Shipments are expected to be in line with FY26 inventory depletions in its Americas division, with rebalancing to be completed in FY28.