Ansell (ANN) H1 2026 earnings summary

Executive summary

• Delivered double-digit adjusted earnings growth and significant EBIT margin expansion despite subdued market conditions, with adjusted EPS up 19.0% to 66.3 US¢ and strong cash flow supporting share buybacks and investments.

• Successfully offset $80 million in US tariff costs through price increases and operational efficiencies, with all tariff-related price increases implemented.

• Accelerated Productivity Investment Program (APIP) reached its $50m annualized savings target, with ERP system upgrades underway.

• Leadership transition completed, with Nathalie Ahlström commencing as CEO from 16 February 2026, emphasizing continuity, innovation, and sustainability.

• Digital transformation, improved business processes, and increased presence in higher-growth markets have positioned the company for sustainable future performance.

Financial highlights

• Sales for FY26 H1 were $1,026.6m, up 0.7% year-over-year; organic constant currency sales declined 0.6% but adjusted sales growth was 2.1% after excluding prior period order pattern effects.

• EBIT increased 15.3% to $146.9m, with EBIT margin rising by 180bps to 14.3%; net profit attributable to shareholders rose 61.5% to $88.8m.

• Adjusted EPS rose 19.0% to 66.3 US¢; statutory EPS increased 62.7% to 61.5 US¢.

• Dividend per share was US26.60¢, up 19.8% year-over-year, with a 40% payout ratio.

• Net Debt/EBITDA improved to 1.5x, with strong cash conversion at 112% and $47m+ spent on share buybacks.

Outlook and guidance

• Maintained FY26 Adjusted EPS guidance of US137¢ to US149¢, despite a $5m FX headwind.

• Organic constant currency sales growth expected in FY26 H2, with stable market conditions and continued earnings momentum.

• On track to deliver $12m in KBU net pre-tax cost synergies for FY26 and capex forecasted at $60m to $70m.

• Net interest cost projected at ~$43m; book tax rate 23.5%-24.5%; one-off pre-tax costs of ~$15m expected, mainly for ERP upgrades.

• Continued focus on differentiated product launches, productivity, and sustainability leadership.