Treasury Wine Estates (TWE) has entered a trading halt as it prepares to update investors on its outlook.

In a statement to the ASX, the company said it was in the final stages of preparing materials for an investor and analyst call scheduled for Wednesday, which will include information relating to the company’s outlook.

The halt follows TWE announcing earlier this month that further moderation in the US wine category had impacted its earning grow expectations.

In its 2025 Annual Report, TWE disclosed that a reduction in future cash flows in the Americas business of 11% per annum over the forecast period would reduce impairment headroom to nil.

However, in early December the company said that while a number of its larger brands continue to grow ahead of market—including DAOU, Frank Family Vineyards and Matua—in response to further moderation in US wine category trends, it had applied more conservative long-term market growth assumptions.

This has resulted in reduced long-term earnings growth rates, which will impact carrying values within the Treasury Americas and Treasury Collective—Americas cash generating units.

TWE said the final impairment amount and allocation to assets will be concluded as part of the 2026 interim results, however it is expected that the impairment will result in at least all goodwill ($687.4 million at 30 June 2025) currently carried in the Americas being written off, with potential to impact other assets.

New CEO Sam Fischer will host the investor and analyst conference call, which will include a progress update on performance in TWE’s key markets, including in China and the US, and Fischer’s initial observations.

Guidance pulled in China

In October, TWE gave an update to investors on its expectations for FY26 in the China market and noted that the Mid-Autumn Festival sales period in China had been weaker than anticipated.

“If the performance trends indicated by the preliminary data continue through F26, Penfolds depletions targets for
F26 in China are unlikely to be achieved,” TWE said.

“As a result, TWE no longer believes it is appropriate to retain the Penfolds guidance for low to mid double-digit EBITS growth in FY26 and approximately 15% EBITS growth in FY27.

“Several initiatives are now being implemented to mitigate the expected impacts in China in F26, including pursuing opportunities to re-allocate product to select customers in other key markets in a manner that is sustainable and minimises the risk of parallel imports back into the China market.”