Treasury Wine Estates Ltd (TWE.AU) shares surged 7.37% during intraday trading on Monday, as investors focused on the company's underlying business momentum and reiterated earnings guidance, while largely overlooking a significant one-time material item charge.

The company reported unaudited EBITS before material items of A$492.3 million for fiscal 2026, and stated that underlying momentum in the business remains positive. It also reiterated EBITS guidance for fiscal 2027 to be at least equivalent to fiscal 2026, signaling confidence in its operational performance. Additionally, Treasury Wine announced plans to transition to a regional operating model with four segments, and finalized actions including reducing North Coast vintage make sizes, which were seen as steps toward improved efficiency.

The market's positive reaction came despite the company expecting to recognize an additional A$558.4 million post-tax material item charge in its F26 results, including a write-down to brands such as DAOU and an inventory write-down predominantly related to bulk wine. The one-time, non-cash nature of these charges allowed investors to concentrate on the solid underlying earnings and the steady outlook.