TWE - treasury wine

 TWE

2026

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Over the last 5 years, Treasury Wine Estates (ASX: TWE) has experienced a pressured and volatile financial performance, characterized by an overall downward earnings trend, major US market headwinds, and a recent heavy net loss that prompted a dividend suspension and a strategic multi-year turnaround plan. [1, 2, 3]

Profit and Earnings

Overall earnings have trended downward by roughly 10% per year over the trailing 5-year stretch, plagued by shifting consumer trends and supply changes. [1]
While FY2025 showed temporary recovery with revenue hitting AU$2.99 billion and a net profit of AU$436.9 million, subsequent interim results for FY2026 swung into a heavy net loss of AU$649.4 million driven by severe US asset/goodwill write-downs. [1, 2]
Trailing twelve-month revenue sits around AU$2.73 billion with a net loss of roughly AU$433.4 million. [1]

Debt and Balance Sheet

Total debt stands at approximately AU$2.08 billion against cash equivalents of about AU$216 million, leaving a net debt position near AU$1.86 billion.
The debt-to-equity ratio sits around 53.7%.
To protect the balance sheet amidst these headwinds, management paused dividend payouts. [1, 2]

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ROIC vs WACC 2026

For Treasury Wine Estates Ltd, the current Return on Invested Capital (ROIC) of roughly 4.1% to 7.3% trails or closely hovers near its Weighted Average Cost of Capital (WACC) of about 7.5%. Over the past decade, TWE has largely functioned as a marginal economic value creator, with ROIC frequently tracking close to or below its WACC during cyclical downturns and supply chain shifts. [1, 2, 3]

Capital Returns vs. Cost of Capital Overview

Current WACC: ~7.55% (near or slightly above its 10-year median of ~6.05%)
Current ROIC (TTM/Recent): ~4.09% to 7.3% (varies depending on exact trailing timeframe and recent asset adjustments)
10-Year Trend Summary: TWE's historical performance shows periodic margin compression where returns failed to clear the hurdle rate, though strong periods (led by key brands like Penfolds) occasionally pushed economic profit into positive territory. [1, 2, 3, 4, 5]

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The historical EBITDA margin for Treasury Wine Estates Ltd (ASX: TWE) has generally fluctuated between 19% and 32% over the last ten years, though trailing twelve-month (TTM) figures dropped into negative territory following massive material impairment charges in its commercial wine portfolios. [1, 2]

Chronological EBITDA Margin History

The percentage breakdown calculated from reported financial statements reflects the following structural performance phases:

FY25: 30.7% (EBITDA of A$903.4M on A$2,938.1M revenue)
FY24: 30.3% (EBITDA of A$830M on A$2,739.8M revenue)
FY23: 28.6% (EBITDA of A$692.6M on A$2,423M revenue)
FY22: 23.2% (Reflective of structural shifts and the US portfolio reset)
FY21: 22.8% (Impacted heavily by Chinese tariff introductions on Australian wine)
FY20: 19.4% (Trough resulting from global pandemic supply disruptions)
FY19: 24.5% (Peak operating performance era for the core luxury segment)
FY18: 23.1%
FY17: 23.2%
FY16: 19.4% [1, 2]

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