Wesfarmers
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Wesfarmers (WES) investor relations material

Wesfarmers H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary19 Feb, 2026

Executive summary

  • Revenue increased 3.1% year-over-year to $24.2 billion, with net profit after tax up 9.3% to $1.6 billion, driven by strong performances in Bunnings, Kmart Group, and WesCEF, supported by productivity and digital initiatives.

  • Interim fully-franked dividend rose 7.4% to $1.02 per share, and a $1.50 per share capital management distribution was paid in December.

  • Sustainability progress included a 27.8% reduction in Scope 1 and 2 emissions, 100% renewable energy in retail, and increased rooftop solar capacity.

  • All divisions except Officeworks grew earnings; Officeworks' decline was due to transformation program costs.

  • Investments in technology, sustainability, and climate resilience advanced, with improved safety metrics.

Financial highlights

  • EBIT increased 8.4% to $2,493 million; basic EPS rose 9.3% to 141.4 cents.

  • Free cash flow increased 35.6% to $2,745 million, mainly from asset sales.

  • Net financial debt increased to $4.9 billion, with Debt/EBITDA at 1.9x.

  • Return on equity (excluding significant items) improved to 32.7%.

  • Operating cash flows decreased 3.3% to $2,491 million due to higher tax paid.

Outlook and guidance

  • Retail divisions are expected to drive profitable growth, leveraging value credentials and omnichannel investments.

  • Bunnings and Officeworks sales growth in early 2H in line with 1H; Kmart Group sales growth stronger.

  • Lithium JV refinery ramp-up extended due to odour issues, but 2H earnings expected to be slightly above 1H; excess spodumene to be sold profitably.

  • Net capital expenditure for FY26 expected between $1 billion and $1.3 billion, excluding BPI sale proceeds.

  • Health division to focus on consumer business growth and wholesale improvements.

Update on lithium refinery odour issue resolution
Financial impact of Infinity Group administration
Impact of capital management on balance sheet capacity
Lithium refinery ramp-up impact on FY27 earnings?
Officeworks transformation: funding and tech leadership?
Quantify AI's impact on group productivity and costs
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H2 202627 Aug, 2026
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Frequently asked questions

Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. It operates through Bunnings Warehouse (Bunnings), Officeworks, Kmart, Target, Coles, Homebase, and Other segments. The company operates supermarkets under the Coles and BI-LO tradenames; department stores under the Kmart, Officeworks, and Target brand names; home improvement stores under the Bunnings Warehouse name; commercial offices and industrial properties; and chemical businesses.

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