Sydney, Feb 17, 2026, 18:25 AEDT — Market closed.
- TWE slid for the second day in a row, closing 4.6% lower.
- Shares slid after the company halted its interim dividend, citing a U.S. write-down and swinging to a net loss for the first half.
- Focus has shifted to cash flow, debt levels, and whatever the upcoming strategy update brings.
Treasury Wine Estates dropped another 4.6% to A$4.74 by Tuesday’s close, building on losses from the day before. The winemaker is now trading close to its 2026 low. (Intelligent Investor)
The S&P/ASX 200 climbed 0.24%, though Treasury Wine lagged behind, weighed down by its own set of challenges. (ABC News)
The sell-off has pulled income seekers and those scrutinizing the balance sheet into alignment. No dividend on offer at the moment means investors are left watching: just how soon will cash start flowing, and how rapidly can debt shrink?
Treasury Wine is turning into something of a bellwether for the limits of pricing power among premium alcohol names, as belt-tightening by consumers—particularly in the U.S. and China—starts to bite. That push-pull is what traders are watching heading into the next session.
Penfolds owner hit pause on its interim dividend Monday after booking a A$770.5 million impairment tied to its U.S. operations, sending the group to a A$649.4 million net loss for the half, according to Reuters. Revenue slipped 17%, operating income down 40%. The company’s rolling out a A$100 million cost-saving program over the next two to three years. On the dividend question, CFO Stuart Boxer told analysts it’s “too early to call” when payouts might resume. (Reuters)
The filing showed revenue from ordinary activities slid 16.6% to A$1.3096 billion. EBITS—the company’s measure of operating profit—tumbled 39.6%, landing at A$236.4 million. For the half-year ended Dec. 31, the board opted to skip the interim dividend, a year after issuing 20 Australian cents. (Company Announcements)
Treasury, in its results slide deck, forecasted stronger EBITS for the second half compared to the first, with leverage sitting at 2.4 times. The A$100 million annual cost-cut push over the next two to three years stays on track, with early gains anticipated from fiscal 2027. Management flagged more controlled shipments to China as it works to clamp down on “parallel imports”—the grey-market wine flows that threaten official price points. (Company Announcements)
Chief Executive Sam Fischer kept his tone measured in remarks published by Inside FMCG. “Today’s results come at a time when we are already making meaningful progress with the decisive actions required,” Fischer said. (Inside FMCG)
Investors aren’t hiding their concerns. Delayed cost cuts won’t resolve what’s right in front of them: near-term uncertainty. If the U.S. rebound drags or discounting ramps up in China, the stock stays under pressure—even if earnings hold steady on the surface.
Execution hiccups with California distribution and juggling inventory elsewhere remain a risk. Should those drag on, delivering the expected boost later in the year could prove tougher.
This Wednesday, traders are eyeing any updates on broker targets and looking for specifics on cash generation, with the company aiming to bring leverage down. The dividend? It’s become a matter of debt versus cash now.
June 4 stands out—Treasury has scheduled an investor day in Sydney to detail its transformation program targets. (Seeking Alpha)
