Elders (ELD) H2 2025 earnings summary

Executive summary

• EBIT increased 12% year-over-year to $143.5m, with underlying NPAT up 34% to $86.0m, supported by strong cash generation and resilient performance across Agency, Real Estate, and Feed & Processing segments despite mixed seasonal and drought conditions.

• Diversified portfolio, disciplined financial management, and eight acquisitions, including Delta Agribusiness, enhanced technical expertise, geographic reach, and operational diversification.

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

• Safety performance improved, with LTIFR at 1.1, well below the industry benchmark of 6.8.

Financial highlights

• Sales revenue rose by AUD 70.4 million (2.2%) to $3,201.7m, with gross margin up 7.4% (AUD 47 million) to $684.6m and margin percentage at 21.4%.

• Underlying EBIT up AUD 15.5 million (12%) to AUD 143.5 million; underlying EPS up 14% to 46.5 cents.

• Return on capital steady at 11.3%, with a target to exceed 15% post-synergies from Delta.

• Net debt at AUD 457.3 million, leverage ratio at 2.9x, expected to return to 1.5–2.0x by FY26.

• Cash conversion improved to 137%, with operating cash inflow of AUD 117.9 million.

Outlook and guidance

• Optimistic outlook for FY 2026, 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%.

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

• Targeting accelerated realization of AUD 12 million in synergies from Delta, with potential to exceed original ROC targets.

• Cost base to remain below inflation, adjusted for acquisitions and transformation.