Brambles (BXB) H1 2026 earnings summary

Executive summary

• Achieved 2% sales revenue growth in H1 FY2026 at constant FX, with net new business offsetting weak consumer demand and pricing actions recovering cost increases.

• Underlying profit rose 7% to $792 million, driven by supply chain and overhead productivity, with robust free cash flow before dividends of $482 million.

• Interim dividend of 23.0 US cents per share declared, up 21% year-over-year, with a payout ratio of 60.5% and $191–$195 million of shares repurchased as part of a $400 million buyback.

• Strategic reinvestments in customer experience, platform quality, and digital solutions supported new business momentum and improved customer value proposition.

• Productivity initiatives and digital transformation advanced, including Serialisation+ rollout and progress on 2030 sustainability targets.

Financial highlights

• Sales revenue grew 2% at constant FX to $3,534 million; underlying profit margin expanded by 1.1 points to 22.4%.

• EPS from continuing operations increased 13%, including a 2-point benefit from share buybacks.

• Profit after tax from continuing operations up 11%–14%, aided by higher operating profit and lower net finance costs.

• Free cash flow before dividends increased by $53 million to $482 million, driven by higher earnings and lower working capital outflows.

• ROCE/ROCI improved by 1.1 points to 24.3%.

Outlook and guidance

• FY2026 revenue growth guidance narrowed to 3%–4% (from 3%–5%) due to subdued consumer demand.

• Underlying profit growth guidance unchanged at 8%–11%, with margin expansion expected across all segments.

• Free cash flow before dividends guidance upgraded by $100 million to $950 million–$1.1 billion, reflecting lower CapEx and rephased investments.

• Dividend payout policy of 50%–70% of underlying profit, fully funded by free cash flow.

• $400 million share buyback on track for completion by end of FY2026.