Discontinued — last reported Q4 '25

Business Segments · Unfavorable fixed cost absorption

Wine and Spirits — Unfavorable fixed cost absorption

Constellation Brands Wine and Spirits — Unfavorable fixed cost absorption decreased by 31.8% to -$107.00M in Q3 2025 compared to the prior quarter. Year-over-year, this metric grew by 52.7%, from -$226.10M to -$107.00M. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementSegment
CategoryEfficiency
SignalLower is better
VolatilityModerate
First reportedQ4 2020
Last reportedQ4 2025

How to read this metric

An increase indicates declining production efficiency and higher per-unit costs, which compresses operating margins.

Detailed definition

This metric quantifies the inefficiency in production costs resulting from lower-than-planned manufacturing volumes, whe...

Peer comparison

Standard operational metric for manufacturing-heavy industries; peers often refer to this as 'under-absorption' or 'volume variance' in their cost of goods sold analysis.

Metric ID: stz_segment_wine_and_spirits_unfavorable_fixed_cost_absorption

Historical Data

6 periods
 Q1 '24Q2 '24Q3 '24Q1 '25Q2 '25Q3 '25
Value-$220.30M-$224.70M-$226.10M-$184.40M-$81.20M-$107.00M
QoQ Change-2.0%-0.6%+18.4%+56.0%-31.8%
YoY Change+16.3%+63.9%+52.7%
Range-$226.10M-$81.20M
CAGR-43.9%
Avg YoY Growth+44.3%
Median YoY Growth+52.7%

Frequently Asked Questions

What is Constellation Brands's wine and spirits — unfavorable fixed cost absorption?
Constellation Brands (STZ) reported wine and spirits — unfavorable fixed cost absorption of -$107.00M in Q3 2025.
How has Constellation Brands's wine and spirits — unfavorable fixed cost absorption changed year-over-year?
Constellation Brands's wine and spirits — unfavorable fixed cost absorption increased by 52.7% year-over-year, from -$226.10M to -$107.00M.
What does wine and spirits — unfavorable fixed cost absorption mean?
The increase in per-unit production costs caused by operating manufacturing facilities at lower volumes than their designed capacity.