Treasury Wine Estates shares surged after the winemaker resolved a long-running dispute with U.S. distributor Republic National Distributing Company (RNDC) and raised its first-half earnings guidance. The company reached a settlement following RNDC's exit from the California market last year, with Treasury Wine agreeing to repurchase inventory at original sale value, net of a confidential settlement amount.

Treasury Wine expects a net cash outflow of approximately US$65 million related to the settlement in the second half of fiscal 2026, accounting for planned resale of inventory to other customers. The winemaker lifted its first-half fiscal 2026 earnings before interest, tax and significant items forecast to about A$236 million, exceeding its previous guidance range of A$225 million to A$235 million.

The guidance hike reflects improved trading momentum after the dispute resolution, easing concerns over the company's Americas business performance. The settlement marks a significant development for Treasury Wine's U.S. operations, which had been under pressure since RNDC's California market exit disrupted distribution channels and created inventory challenges.