Brambles (BXB) H2 2025 earnings summary

Executive summary

• Achieved 3% sales revenue growth to US$6,670m and 10% underlying profit growth to US$1,372m, with free cash flow before dividends exceeding US$1,094.9m for the first time.

• Transformation program delivered structural improvements, asset efficiency, digital capability expansion, and enhanced customer value.

• Declared total FY25 dividend of 39.83 US cents per share, up 17%, and completed US$403m in share buybacks, with up to US$400m planned for FY26.

• Sustainability achievements included record safety, 94% waste diversion, surpassing recycled content targets, and recognition as a top global sustainable company.

• Transformation established a foundation for future growth, embedding digital and innovation capabilities.

Financial highlights

• Sales revenue grew 3% year-over-year to US$6,670m; underlying profit rose 10% to US$1,372m, with margin expansion of 1.3pts driven by productivity and asset efficiency.

• Profit after tax from continuing operations increased 13%, aided by lower net finance costs and a reduced effective tax rate.

• Basic EPS (continuing ops) increased 14% to 62.5 US cents; total value creation for shareholders reached 17%.

• Free cash flow before dividends rose by US$212m to US$1,095m, supported by lower CapEx and improved working capital.

• Net debt/EBITDA remained stable at 1.12x; interest cover at 19.1x.

Outlook and guidance

• FY26 sales revenue growth expected at 3-5%, underlying profit growth at 8-11%, and free cash flow before dividends of US$850m–US$950m.

• Dividend payout ratio to remain at 50-70% of underlying profit after finance costs and tax.

• Share buy-back of up to US$400m planned for FY26.

• CapEx-to-sales ratio expected to rise to ~1.6% due to higher FIFO pallet costs; overhead restructuring to deliver $15m net benefit in FY26 and $55m annualized in FY27.

• Margin expansion target increased to at least 3 percentage points by FY28 versus FY24 baseline.