Brambles (BXB) H1 2025 earnings summary

Executive summary

• Sales revenue grew 4% year-over-year to US$3,372m, with underlying profit up 10% to US$718m and free cash flow before dividends up US$118m to US$429m, driven by price realization and volume growth.

• Transformation initiatives improved asset efficiency, customer experience, and operational productivity, supporting strong financial performance.

• Interim dividend of 19 US cents per share (30% franked) declared, with a 58% payout ratio, and a $0.19 interim dividend representing a 27% increase.

• Majority of FY25 sustainability targets are on track, with decarbonisation efforts ahead of the 2030 Science-based Targets pathway.

• Sale of CHEP India completed in January 2025, with profit on sale to be recognised in 2H25.

Financial highlights

• Group sales revenue up 4% year-over-year; underlying profit up 10%; profit after tax up 11%; basic EPS from continuing operations increased 11% to 32.1 US cents.

• Free cash flow before dividends increased to $429 million, with normalized free cash flow at $394 million after adjusting for CapEx holiday.

• Pooling CapEx to sales ratio reduced by 2.6 points to 11.9% due to fewer pallet purchases and lumber deflation.

• Net debt/EBITDA at 1.16x, with strong liquidity and investment-grade credit ratings.

• Return on Capital Invested improved to 23.0%, up 1.3pts year-over-year.

Outlook and guidance

• FY 2025 guidance reconfirmed: constant currency sales revenue growth of 4%-6%, underlying profit growth of 8%-11%.

• Upgraded FY 2025 free cash flow before dividends guidance by $100 million to $850–$950 million, driven by lower CapEx.

• Dividend payout ratio target remains 50%-70%; on track to complete $500 million share buyback by FY 2025 end.

• FY25 pooling capex to sales ratio expected at 12-14%, with digital capex reduced due to Serialisation+ pilot optimisation.

• H2 2025 expected to see continued net new business momentum, with Americas margins contracting due to higher plant costs and IPEP normalization.