Treasury Wine Estates Shares Surge After U.S. Dispute Settlement and Earnings Upgrade

Treasury Wine Estates shares jumped sharply on Tuesday after the global winemaker announced it had settled a long-running dispute with a major U.S. distributor and upgraded its first-half earnings guidance, easing investor concerns around its Americas business. The positive update boosted market confidence, sending the company’s stock up as much as 8.1% to A$5.59 before trading 6.6% higher at A$5.49 by 02:10 GMT.

The share price rally followed confirmation that Treasury Wine Estates’ U.S. subsidiary has reached a settlement with Republic National Distributing Company (RNDC). The dispute stemmed from RNDC’s exit from the California market last year, which had created uncertainty around distribution and inventory management in one of the company’s most important regions. The resolution removes a key overhang that had weighed on sentiment toward Treasury Wine Estates’ U.S. operations.

Under the terms of the agreement, Treasury Wine Estates will repurchase inventory currently held by RNDC in California at its original sale value. This amount will be adjusted by a confidential settlement sum designed to compensate Treasury Wine for the financial impact of RNDC’s market withdrawal. The company noted that it plans to resell the recovered inventory to other customers, helping to partially offset the cash impact of the settlement.

Treasury Wine Estates expects the net cash outflow related to the settlement to be approximately US$65 million in the second half of fiscal 2026. This figure already accounts for the anticipated resale of inventory, suggesting the overall financial impact is manageable and largely one-off in nature.

In addition to resolving the distributor dispute, the company raised its first-half fiscal 2026 earnings before interest, tax and significant items forecast to around A$236 million. This is above its previous guidance range of A$225 million to A$235 million and reflects improved trading momentum following the settlement. The earnings upgrade reinforces the view that Treasury Wine Estates is stabilizing its Americas business while positioning itself for stronger performance ahead, a development welcomed by investors and analysts alike.