Brambles (BXB) H1 2025 earnings summary

Executive summary

• Sales revenue grew 4% year-over-year to US$3,372m, driven by 2% volume growth and 2% price realization, with all regions contributing; underlying profit up 10% to US$718m.

• Free cash flow before dividends rose by US$118m to US$429m, mainly due to lower capital expenditure and improved asset efficiency.

• Interim dividend of 19.0 US cents per share declared (30% franked), up 27%, with a 58% payout ratio.

• Transformation initiatives enhanced asset efficiency, customer experience, digital capabilities, and operational productivity.

• Majority of FY25 sustainability targets are on track, with decarbonization efforts ahead of the 2030 Science-based Targets pathway.

Financial highlights

• Underlying profit and operating profit up 10% at constant FX, with margin improvement and strong cost discipline.

• Profit after tax from continuing operations up 11% to US$445.7m; basic EPS up 11% to 32.1 US cents.

• Pooling capital expenditure to sales ratio fell 2.6 points to 11.9%, reflecting asset efficiency and lower pallet purchases.

• Net debt/EBITDA at 1.16x, with strong liquidity and investment-grade credit ratings.

• Return on Capital Invested improved to 23.0%, up 1.3 points year-over-year.

Outlook and guidance

• FY25 guidance reconfirmed: constant currency sales revenue growth of 4%-6%, underlying profit growth of 8%-11%.

• Free cash flow before dividends guidance upgraded by US$100m to US$850–950m, driven by lower CapEx.

• Dividend payout ratio target remains 50%-70%; on track to complete US$500m share buyback by FY25 end.

• FY25 pooling capex to sales ratio expected at 12-14%, with digital capex reduced due to Serialisation+ pilot optimisation.

• Ongoing focus on asset efficiency, supply chain productivity, and transformation initiatives to support future growth.