Wesfarmers (WES) investor relations material

Executive summary

• Revenue increased 3.4% year-over-year to $47.3 billion, with NPAT (excluding significant items) up 8.3% to $2.9 billion, driven by strong performances in Bunnings, Kmart, and WesCEF.

• Total dividend for the year increased 7.8% to $2.22 per share, fully franked, with an additional $1.50 per share capital management distribution paid in December 2025.

• Strategic investments in AI, digital, new store formats, and supply chain enhancements supported growth and operational efficiency.

• Portfolio repositioning included integrating Industrial and Safety into Bunnings, expanding lithium operations, and new joint ventures.

• Sustainability initiatives achieved a 21.9% reduction in Scope 1 and 2 emissions and 100% renewable electricity in retail divisions.

Financial highlights

• EBIT (excluding significant items) grew 7.3% to $4.49 billion; NPAT (excluding significant items) up 8.3% to $2.87 billion.

• Free cash flow rose 15.8% to $3.99 billion, aided by asset sales; net capital expenditure down 29.1% to $779 million.

• Return on equity (excluding significant items) was 35.5%; Debt/EBITDA ratio increased to 1.9x.

• Net financial debt increased to $5.3 billion after capital management distribution.

• Cash realisation ratio in retail divisions at 91%.

Outlook and guidance

• Retail divisions remain well-positioned for profitable growth, leveraging omnichannel assets and value focus despite inflation and cost pressures.

• FY27 net capital expenditure expected at $1.3–1.5 billion, including $200 million for Mt Holland expansion.

• Borrowing costs to rise in FY27 due to higher net debt and capex.

• Bunnings, Kmart, and Officeworks reported positive sales growth in early FY27.