Brambles (BXB) H1 2026 earnings summary

Executive summary

• Achieved 2% sales revenue growth in H1 FY26 (US$3,533.5m), with net new business offsetting weak consumer demand and pricing actions recovering higher costs to serve.

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

• Interim dividend of 23.0 US cents per share declared, up 21% year-over-year, with a payout ratio of 60.5%.

• Strategic investments focused on customer experience, digital solutions, and sustainability, including progress on the 2030 decarbonization program and Serialisation+ rollout.

• Productivity initiatives and operational efficiencies supported margin expansion and improved agility.

Financial highlights

• Underlying profit margin expanded by 1.1pts to 22.4%, supported by supply chain cost savings and overhead restructuring.

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

• Basic EPS from continuing operations up 13% to 37.2 US cents; profit after tax from continuing operations up 11%.

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

• Net debt/EBITDA at 1.13x, with strong liquidity and investment-grade credit ratings.

Outlook and guidance

• FY26 sales 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 upgraded to US$950m–US$1,100m for FY26.

• Dividend payout expected to remain within 50%-70% of underlying profit.

• US$400m share buyback on track for completion by FY26 end.