Brambles (BXB) H2 2025 earnings summary

Executive summary

• Achieved 3% sales revenue growth to US$6,670m and 10% underlying profit growth to US$1,372m, with free cash flow before dividends exceeding US$1,094.9m for the first time.

• Transformation program delivered structural improvements, enhanced customer value, digital capabilities, and sustainability achievements, including record safety and ESG recognition.

• Declared total FY25 dividend of 39.83 US cents per share, up 17%, and completed US$403m in share buybacks, with up to US$400m planned for FY26.

• Digital initiatives, including Serialisation+, advanced asset efficiency and enabled new business growth.

• Transformation established a foundation for future growth, embedding digital and innovation capabilities.

Financial highlights

• Sales revenue grew 3% year-over-year to US$6,670m; underlying profit rose 10% to US$1,372m, with margin expansion of 1.3 percentage points to 20.6%.

• Free cash flow before dividends increased by US$212m to US$1,095m, supported by lower CapEx and improved working capital.

• Basic EPS (continuing ops.) increased 14% to 62.5 US cents; total value creation for shareholders reached 17%.

• Profit after tax from continuing operations increased 13%, aided by lower net finance costs and a reduced effective tax rate.

• Net debt/EBITDA remained stable at 1.12x; interest cover at 19.1x.

Outlook and guidance

• FY26 guidance: sales revenue growth of 3-5%, underlying profit growth of 8-11%, and free cash flow before dividends of US$850m–US$950m.

• Dividend payout ratio to remain at 50-70% of underlying profit; up to US$400m share buy-back planned.

• CapEx-to-sales ratio expected to rise to ~1.6% due to higher FIFO pallet costs; overhead restructuring to deliver US$15m net benefit in FY26 and US$55m annualized in FY27.

• Margin expansion target increased to at least 3 percentage points by FY28 versus FY24 baseline.

• Guidance dependent on macroeconomic conditions, customer demand, input prices, and FX rates.