Brambles (BXB) H2 2026 earnings summary

Executive summary

• Revenue grew 2% year-over-year, driven by new business and price realization, offsetting lower like-for-like volumes from subdued consumer demand.

• Underlying profit rose 4% despite a $90 million adverse impact from U.S. repair capacity constraints; excluding this, profit was up ~11%.

• Free cash flow before dividends exceeded $1 billion, supporting a 16% increase in total dividends and $509 million in share buybacks.

• Transformation initiatives and investments in automation, digital, and sustainability advanced operational resilience and customer value.

• ~$1.2 billion returned to shareholders via dividends and buybacks, supported by robust cash generation.

Financial highlights

• Sales revenue grew 2% to US$7,043m; underlying profit up 4% to US$1,494m; free cash flow before dividends at US$1,048m.

• Basic EPS (continuing ops) increased 6% year-over-year; total dividends of 46.15 US cents, 64% payout ratio.

• Underlying profit margin improved by 0.6 points to 21.2%; ROCI rose 0.4 points to 22.6%.

• Pooling CapEx-to-sales ratio at 12.9%, reflecting higher pallet costs and purchases.

• Net debt/EBITDA at 1.17x; S&P upgraded credit rating to A-.

Outlook and guidance

• FY27 sales revenue growth expected at 2–4%, with underlying profit growth of 2–6%.

• Free cash flow before dividends forecast at US$800–950 million; pooling CapEx-to-sales ratio expected at 13–15%.

• Dividend payout ratio to remain within 50–70% of underlying profit; up to US$400 million share buyback planned.

• US repair capacity constraints to be resolved by end of 1H27; cost increases to be recovered through efficiencies and pricing from 2H27.

• Underlying profit growth expected to be weighted to 2H27, with a mid-to-high single-digit decline in 1H27 offset by double-digit growth in 2H27.