Harvey Norman Holdings (HVN) H2 2026 earnings summary

Executive summary

• Reported profit before tax rose 4.9% year-over-year to $790.29m, with strong performance from franchising, international retail, and property segments.

• System sales revenue increased 3.1% to $9.64bn, with Australian franchisee sales up 2.4% and company-operated sales up 4.5%.

• International expansion continued, with five new overseas stores opened and robust profit growth in New Zealand, Ireland, Singapore, Malaysia, Slovenia, and Croatia.

• Maintained a strong balance sheet with net assets of $4.94bn (up 2.0%) and low net debt-to-equity ratio of 18.81%.

• Operating earnings grew, supported by technology-led categories and continued investment in digital transformation.

Financial highlights

• EBITDA increased 5.0% to $1.18bn; EBIT rose 5.3% to $917.02m.

• Reported profit after tax and NCI was $528.46m, up 2.0% year-over-year.

• Basic EPS grew to 42.41c, and fully-franked dividends per share increased to 27.56c.

• Operating cash flows were $537.22m, impacted by higher inventory investment and working capital timing.

• Profit before tax excluding AASB 16, property revaluations, and pecuniary penalty was $654.69m, up 10.9%.

Outlook and guidance

• July 2026 sales declined in Australia and New Zealand due to timing of product launches, but underlying sales momentum in Europe remained positive.

• Plans to open new stores in Australia, UK, Malaysia, Singapore, Ireland, and Croatia in FY27 and beyond.

• Focus remains on long-term sustainable growth, leveraging substantial property ownership and low gearing.

• Continued investment in international expansion and technology-led categories.