Brambles (BXB) H1 2026 earnings summary

Executive summary

• Achieved 2% sales revenue growth in H1 FY2026 (US$3,533.5m), with net new business offsetting weak consumer demand and price realisation supporting results.

• 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%; US$191m of shares repurchased as part of a US$400m buyback.

• Strategic reinvestments in customer experience, platform quality, and digital solutions supported new business momentum and operational efficiencies.

• Progress on digital transformation and sustainability, including Serialisation+ rollout and 5% reduction in Scope 1 & 2 emissions.

Financial highlights

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

• EPS from continuing operations increased 13%, with profit after tax up 11% to US$507.4m.

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

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

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

Outlook and guidance

• FY2026 sales revenue growth guidance narrowed to 3%-4% (from 3%-5%) due to subdued demand; underlying profit growth guidance unchanged at 8%-11%.

• Free cash flow before dividends guidance upgraded to US$950m–US$1.1bn, reflecting lower CapEx and rephased investments.

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

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

• Margin expansion expected across all segments, supported by supply chain and overhead efficiencies.