Elders (ELD) H1 2026 earnings summary

Executive summary

• Underlying EBIT rose 33% year-over-year to $76.6 million, driven by strong livestock prices, real estate growth, and Delta Agribusiness acquisition.

• Net profit after tax increased 17% to $39.5 million, with revenue up 32% to $1,767.7 million.

• Delta Agribusiness contributed $10.4 million EBIT and $348.0 million in sales in its first five months.

• New divisional model fully implemented, enhancing accountability, efficiency, and geographic presence.

• Sale of Killara Feedlot announced and classified as discontinued operation; proceeds expected to reduce net debt and leverage.

Financial highlights

• Sales revenue increased 32% year-over-year to $1,767.7 million; gross margin up 27% to $396.6 million.

• Underlying EBIT of $76.6 million, up 33% year-over-year; underlying net profit after tax up 13% to $37.9 million.

• Operating cash flow more than doubled to $67.0 million, with cash conversion at 177%.

• Interim dividend of 18 cents per share, fully franked, maintained year-over-year.

• Net tangible assets per share decreased to $1.63 from $2.81 at September 2025, reflecting acquisition impacts.

Outlook and guidance

• Second half expected to benefit from full-year Delta Agribusiness earnings, synergy realization, and reduced interest expense post-Killara sale.

• Winter crop production forecast to rise 13% to 68.4 million tonnes; livestock prices to remain above long-term averages.

• Key financial metrics, including return on capital and leverage, expected to improve as synergies are realised and Killara Feedlot sale completes.

• Margin and cost efficiency, along with systems modernisation, expected to drive EBIT and EPS growth of 5–10% through cycles.

• Continued investment in strategic initiatives and digital tools to support growth and efficiency.