Brown Forman Corp

Company facts

Industry

Beverages

Headquarters

Louisville, Kentucky

Most recent report

10-Q, filed Sep 2, 2026

Incorporated

Delaware

Filings on record

1,008+ filings

On EDGAR

CIK 14693

Fiscal year ends

April

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 5 of 27 sections worth reading, with 3 positive, 19 notable, and 6 negative flags.

• Business (Item 1)

  Major U.S. distribution overhaul, Pabst exit, new CFO, US sales share slipping, Woodford growth.
  Positive

  • Woodford Reserve sold over 1.9 million nine-liter cases in FY2026, up from 1.8M in FY2025, reflecting continued growth in super-premium American whiskey.
  Notable

  • US net sales percentage dropped to 42% of total in FY2026 (from 44% in FY2025), with Mexico rising to 8% and Other to 35%.
  • Largest customer accounted for approx. 10% of FY2026 net sales, down from two customers at 13% and 11% in FY2025, reducing concentration.
  • Concluded partnership with Pabst for Jack Daniel's Country Cocktails; will manage supply, sales, and distribution in-house from July 2026.
  • Started most significant U.S. distribution network overhaul in over 60 years; new distributors in 14 open states and realignment of 11 control states.

• Risk Factors (Item 1A)

  Concrete updates: tariff escalation, credit downgrade, perpetual dual-class with no sunset.
  Notable

  • GLP-1 drugs added as a consumer preference risk factor, new for this period.
  • Excise tax increases in fiscal 2026 in Canada, Czechia, France, Türkiye, and the UK; Australia's CPI-linked increase continues.
  • Ireland's mandatory health warnings on alcohol (liver disease, fatal cancers) are now in effect, a new regulatory burden.
  • Dual-class structure is now stated as perpetual with no sunset provision, a key governance fact.
  Negative

  • Tariffs: Canadian provinces removed all American alcohol from shelves in March 2025; new tariffs followed Feb 2026 Supreme Court ruling.
  • Credit downgrade occurred in November 2025, increasing borrowing costs and risk to liquidity.

• Market for the Stock (Item 5)

  Stock graph reveals severe 5-year underperformance; value dropped to $37 from $100.
  Notable

  • Distinct common stockholders decreased by 175 to 4,421 as of May 31, 2026.

• Management's Discussion (Item 7)

  MD&A with real results, impairment charges, and 2027 guidance.
  Positive

  • Gross margin up 1.6pp to 60.5% in FY2026, helped by acquisitions/divestitures and lower costs.
  • New Mix net sales up 41% in FY2026 (organic 33%), gaining share in Mexico.
  Notable

  • Non-cash impairment charges of $45M (Gin Mare) and $87M (Diplomático) in FY2026.
  • Restructuring reduced workforce ~12%, incurred $63M in FY2025 and $19M in FY2026.
  • U.S. distributor evolution: transitions in California and 13 other markets in FY2026.
  • SG&A up 9% in FY2026 due to costs from contemplated business transaction discussions.
  • Effective tax rate guidance 20-22% for FY2027, up from 19.3% in FY2026.
  • Capital expenditures planned at $60-70M for FY2027, down from $107M in FY2026.
  • Dividend raised 2% to $0.2310 per quarter; annual rate now $0.9240 per share.
  • Share repurchases of $400 million completed in December 2025; new program authorized.
  • Brand impairment sensitivity: 15% sales drop would add $36M (Gin Mare) and $34M (Diplomático).
  Negative

  • Canada: American whiskey removed from retail shelves in most provinces, hurting sales.
  • Non-branded and bulk net sales down 68%, used barrel demand and pricing declined.
  • Fiscal 2027: organic net sales flat, organic operating income decline of 3% to 5%.
  • Moody's downgraded from A1 to A2 in November 2025, increasing borrowing costs.

• Other Information (Item 9B)

  Executive cash awards ($4.9M) for a failed deal are company-specific and material.
  Notable

  • Board approved $4.9M in one-time cash awards to five executives for a terminated deal; CEO got $2.7M.

What changed: FY2026 vs. FY2025

About 13% of BF-B's FY2026 10-K is new information. 95 paragraphs were added, 300 changed, and 147 removed. Below are the most important lines SECSift identified.

• Management's Discussion (Item 7) 117
• Financial Statements (Item 8) 100
• Business (Item 1) 64
• Risk Factors (Item 1A) 39
• Form 10-K Summary (Item 16) 7
• Market Risk (Item 7A) 5
• Other Information (Item 9B) 4
• Cybersecurity (Item 1C) 4