JB Hi-Fi (JBH) H2 2025 earnings summary

Executive summary

• Group sales rose 10.0% year-over-year to $10.55 billion, with all major brands contributing to growth and expansion into premium appliances and bathroom segments targeting renovators, architects, and commercial customers.

• EBIT increased 7.3% to $694.1 million; underlying EBIT (excluding a $13.7 million one-off expense) rose 9.4% to $707.8 million, and underlying NPAT increased 8.5% to $476.1 million.

• Special dividend of 100 cps declared, with total FY25 dividends at 275 cps; combined final and special dividends will distribute $224 million to shareholders.

• CEO Terry Smart to retire in October 2025, succeeded by Nick Wells.

• Maintained focus on value through best brands, broad range, and low prices, supported by a multi-brand, multi-channel strategy.

Financial highlights

• Group gross profit up 10.3% to $2.36 billion; gross margin at 22.36%.

• EPS increased 5.4% to 423.0 cps; underlying EPS up 8.5% to 435.5 cps.

• Inventory increased 18.7% to $1.3 billion, supporting new stores and sales growth.

• Net cash position of $284.1 million, down $18.5 million due to acquisition and dividend payments.

• Free cash flow was $430.2 million.

Outlook and guidance

• July 2025 sales update: JB Hi-Fi Australia up 6.1%, New Zealand up 38.1%, The Good Guys up 4.2%, e&s up 1.0%.

• FY26 focus on supply chain optimization, retail execution, brand expansion, and multi-channel growth.

• Store expansion plans: JB Hi-Fi NZ (3 new stores), e&s (1 new store), JB Hi-Fi Australia (5 new, 1 closure), The Good Guys (2 relocations).

• Dividend payout ratio to increase to 70-80% of NPAT from FY26.

• Retail market remains uncertain, but positive sales momentum continues into FY26.