JB Hi-Fi (JBH) H1 2026 earnings summary

Executive summary

• Record half-year sales of $6.10 billion, up 7.3% year-over-year, with strong earnings growth and increased dividend payout ratio.

• Group NPAT rose 7.1% to $305.8 million and EBIT increased 8.1% to $454.0 million for the six months ending 31 December 2025.

• Interim dividend increased by 23.5% to 210.0 cps, representing 75% of NPAT, reflecting a new payout policy.

• All major brands (JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, e&s) delivered sales and EBIT growth, except e&s EBIT, which declined due to strategic investments.

• Multi-brand strategy targets distinct market segments, focusing on value, customer service, and multi-channel retailing.

Financial highlights

• Group sales up 7.3% to $6.10 billion; EBIT up 8.1% to $454.0 million; NPAT up 7.1% to $305.8 million.

• EPS increased 7.1% to 279.7 cps; interim dividend up 40 cps to 210.0 cps.

• Group gross margin rose to 22.31% (+19 bps); JB Hi-Fi Australia gross margin up 11 bps to 21.95%.

• Free cash flow was $457.0 million; closing net cash position of $489.5 million as of 31 December 2025.

• CapEx up 20.7% to $46.9 million, driven by store and strategic investments.

Outlook and guidance

• Management remains cautious due to retail market uncertainty and competitive pressures.

• January 2026 sales update: JB Hi-Fi Australia up 4.0%, New Zealand up 26.4%, The Good Guys up 2.7%, e&s down 4.6%.

• Focus on operational efficiency, customer engagement, supply chain optimization, and expanding store network.

• Expectation of price increases in PCs due to memory and storage costs, but plan to maintain price points for customers.

• Sales and earnings are typically higher in the first half due to Black Friday and Christmas trading.