Brambles (BXB) H1 2026 earnings summary

Executive summary

• Achieved 2% sales revenue growth in H1 FY2026, with net new business offsetting weak consumer demand and pricing actions recovering cost increases.

• Underlying profit rose 7% to $792 million, driven by supply chain and overhead productivity, with robust free cash flow before dividends of $482 million.

• Interim dividend of $0.23 per share declared, up 21% year-over-year, with a payout ratio of 60.5%, and $191 million of shares repurchased as part of a $400 million buyback.

• Strategic reinvestments focused on customer experience, platform quality, and digital solutions, supporting new business momentum and margin expansion.

• Digital and sustainability initiatives advanced, including Serialisation+ rollout and progress toward 2030 sustainability targets.

Financial highlights

• Sales revenue rose 2% year-over-year to $3,534 million; underlying profit up 7% to $792 million.

• EPS from continuing operations increased 13%, including a 2-point benefit from share buybacks; basic EPS at 37.2 US cents.

• Free cash flow before dividends increased by $53 million to $482 million, driven by higher earnings and lower working capital outflows.

• Underlying profit margin expanded by 1.1 points, supported by supply chain and overhead productivity.

• Net debt increased to $2,712 million, with net debt/EBITDA at 1.13x and strong liquidity of $1.7 billion.

Outlook and guidance

• FY2026 revenue growth guidance narrowed to 3%-4% (from 3%-5%) due to subdued consumer demand.

• Underlying profit growth guidance unchanged at 8%-11%, with margin expansion expected across all segments.

• Free cash flow before dividends guidance upgraded by $100 million to $950 million–$1.1 billion, reflecting lower CapEx and rephased investments.

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

• $400 million share buyback on track for completion by end of FY2026.