Kernel (KER) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 was $1,924 million, down 1% year-over-year, with Q2 revenue at $1,098 million, a 4% decrease year-over-year but a 33% increase sequentially due to higher sales volumes post-harvest.

• Net profit attributable to shareholders for H1 FY2026 was $119 million, down 33% year-over-year; Q2 net profit was $24 million, a 58% year-over-year decline.

• EBITDA for H1 FY2026 was $247 million, down 14% year-over-year; Q2 EBITDA was $103 million, a 13% year-over-year decrease.

Financial highlights

• Gross profit for Q2 FY2026 declined 20% year-over-year to $126 million, reflecting margin pressure in key segments.

• Operating cash flow for H1 FY2026 was negative $162 million, compared to positive $54 million in the prior year, mainly due to inventory build-up and working capital outflows.

• Net debt increased to $451 million as of 31 December 2025, up from $133 million at 30 September 2025, driven by seasonal working capital needs.

• Cash balance decreased 44% sequentially to $331 million.

Outlook and guidance

• Management expects continued volatility due to ongoing war in Ukraine, logistics disruptions, and tight feedstock supply for oilseed processing.

• The upcoming spring thaw is critical for winter crop development and yield potential.