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, driven by 2% volume growth and 2% price realization, and all regions contributing.

• Free cash flow before dividends increased by US$118m to US$429m, mainly due to lower capital expenditure and improved asset efficiency.

• Transformation initiatives enhanced customer experience, digital capabilities, asset recovery, and operational productivity, supporting margin expansion and cash generation.

• Interim dividend increased 27% to 19.0 US cents per share, 30% franked, with a payout ratio of 58%.

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

Financial highlights

• Underlying profit and operating profit up 10% at constant FX, with margin improvement and strong cost discipline; profit after tax up 11%.

• Pooling capex to sales ratio fell 2.6pts to 11.9%, reflecting asset efficiency and lower pallet purchases.

• EPS increased 11% year-over-year; interim dividend of 19 US cents per share declared.

• 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

• FY25 sales revenue growth guidance unchanged at 4-6%; underlying profit growth at 8-11%.

• Free cash flow before dividends guidance upgraded by US$100m to US$850-950m, driven by lower CapEx.

• Dividend payout policy remains at 50-70% of underlying profit, fully funded by free cash flow.

• On track to complete US$500m share buyback by FY25 end.

• FY25 ROCI expected to improve by ~1pt, with EMEA and APAC driving gains.