Harvey Norman Holdings (HVN) H1 2026 earnings summary

Executive summary

• Profit before tax rose 16.5% year-over-year to $466.31M, driven by strong Australian franchising, overseas retail, and property income, with disciplined cost control.

• System sales revenue increased 6.9% to $5.16BN, with franchisee sales up 4.8% and company-operated sales up 11.6%, supported by momentum in both Australian and overseas stores.

• Net assets grew 4.9% to $4.95BN, and total assets increased 6.3% to $8.77BN.

• Interim dividend per share increased 20.8% to 14.5c, fully franked.

• Maintained cost discipline, with operating expenses as a % of system sales reduced to 17.8% from 18.0%.

Financial highlights

• EBITDA rose 14.9% to $667.88M; EBIT up 14.4% to $527.53M year-over-year.

• Reported profit after tax and NCI increased 15.2% to $321.91M; basic EPS up 15.3% to 25.84c.

• Interim dividend per share up 20.8% to 14.5c.

• Operating cash flows reached $392.88M, with a cash conversion ratio of 96.2%.

• Net debt-to-equity ratio remains low at 13.02%, reflecting conservative gearing.

Outlook and guidance

• Continued sales growth into January 2026 across all regions and segments, with aggregated system sales up 4.6% and comparable sales up 4.3%.

• Plans for new store openings and relocations in Australia, UK, Malaysia, and Croatia through FY27.

• Ongoing investment in store refits and digital transformation.

• Early trading momentum has continued into the second half of the financial year.