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$1,095m for the first time.

• Transformation program delivered structural improvements, asset efficiency, and digital capability expansion, supporting resilience and customer value.

• Declared a total dividend of $39.83 per share, up 17% from FY 2024, and completed $403 million in share buybacks, with an additional $400 million planned for FY 2026.

• Sustainability achievements included a record safety year, 94% waste diversion from landfill, and recognition as a top global sustainable company.

Financial highlights

• Group sales revenue increased 3% year-over-year to US$6,670m, slightly below guidance due to subdued like-for-like volumes.

• Underlying profit rose 10% to US$1,372m, with margin expansion of 1.3 percentage points, driven by productivity and asset efficiency.

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

• EPS grew 14% to 62.5 US cents, with a 1% benefit from share buybacks; total value creation for shareholders reached 17%.

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

Outlook and guidance

• FY 2026 sales revenue growth expected between 3% and 5%, with underlying profit growth of 8%-11%.

• Free cash flow before dividends forecast at US$850m–US$950m; $400 million share buyback planned.

• CapEx-to-sales ratio expected to rise to ~1.6% due to higher FIFO pallet costs; overhead restructuring to deliver $15 million net benefit in FY 2026 and $55 million annualized in FY 2027.

• Margin expansion target increased to at least 3 percentage points by FY 2028 versus FY 2024 baseline.

• Dividend payout ratio guidance at 50–70%.