Elders (ELD) H2 2025 earnings summary

Executive summary

• Underlying EBIT increased 12% year-over-year to $143.5 million, with strong operational resilience and cash generation despite mixed seasonal and regional drought conditions.

• Diversified portfolio, disciplined financial management, and national footprint mitigated impacts from dry weather and competitive retail environment.

• Eight acquisitions completed, including Delta Agribusiness, enhancing technical expertise, geographic reach, and backward integration in crop protection.

• Significant safety improvements, with LTIFR at 1.1 and TRIFR halved to 4.5, both well below industry benchmarks.

• Transformational projects, including SysMod and automation initiatives, are nearing completion, setting up a modernized platform for future growth.

Financial highlights

• Sales revenue rose 2% year-over-year to $3,201.7 million, supported by both acquisition and organic growth.

• Gross margin increased 7% to $684.6 million, with underlying EBIT up $15.5 million to $143.5 million.

• Underlying NPAT up 34% to $86.0 million; underlying EPS up 14% to 46.5 cents.

• Net debt at $457.3 million, with leverage ratio at 2.9x, expected to return to target range (1.5x–2.0x) by FY26.

• Operating cash inflow was $117.9 million, with cash conversion improved to 137% year-over-year.

Outlook and guidance

• Optimistic FY26 outlook, with first six weeks of trading up 30% year-over-year (excluding Delta) and Delta Agribusiness earnings included from November 2025.

• EBIT and EPS growth targeted at 5–10% through cycles, with ROC at 15% post-synergies from Delta.

• Systems Modernisation project to deliver ROC benefits from FY26, with continued investment in strategic initiatives and efficiency under new divisional model.

• Livestock prices expected to remain strong due to international demand and tightening supply; regional property market outlook positive, supported by lower interest rates.

• Focus on capital allocation, client profitability, and leveraging SysMod benefits to improve return on capital.