Wesfarmers (WES) H2 2025 earnings summary

Executive summary

• Net profit after tax increased 14.4% year-over-year to $2.9b; profit excluding significant items rose 3.8% to $2.7b.

• Revenue increased 3.4% year-over-year to $45.7b, with strong execution in Bunnings and Kmart Group driving results.

• Portfolio actions included the sale of CoreGas for $770m, wind-down of Catch, and bolt-on acquisitions in Officeworks and Health.

• Proposed capital management distribution of $1.50 per share, including a capital return and special dividend, subject to approval.

• Continued focus on sustainability, with a 9.3% reduction in Scope 1 and 2 emissions and $96.5m in community contributions.

Financial highlights

• EBIT rose 11.9% to $4,465m; EBIT (excluding significant items) up 4.9% to $4,186m.

• Divisional earnings increased 4.6% year-over-year, with retail divisions offsetting lower WesCEF earnings.

• Free cash flow increased 6.9% to $3,446m; group operating cash flows decreased 0.6% to $4,568m.

• Basic EPS up 14.3% to 258.0 cps; EPS (excluding significant items) up 3.7% to 234.0 cps.

• Return on equity (R12) increased to 34.3%; net capital expenditure up 5.3% to $1,099m.

Outlook and guidance

• Retail divisions are well positioned for profitable growth, leveraging value credentials and omnichannel investments.

• Bunnings, Kmart Group, and Officeworks reported strong sales momentum in the first eight weeks of FY26.

• Net capital expenditure guidance for FY26 is $1,000m–$1,300m, excluding potential property sale proceeds.

• Covalent lithium refinery achieved first product; ramp-up expected over next 18 months.

• Health segment aims to accelerate earnings by focusing on higher-margin consumer business and transformation initiatives.