Kernel (KER) Q4 2026 earnings summary

Executive summary

• FY2026 revenue rose 7% YoY to $4.404bn, EBITDA increased 20% to $558m, and net profit attributable to equity holders grew 35% to $322m, despite wartime operating challenges.

• More stable Black Sea exports supported operations and investment during FY2026; renewed attacks disrupted ports and shipping at the start of FY2027, sharply increasing uncertainty.

• Enselco added 190,000 hectares of leasehold farmland; year-end net debt rose to $736m, and the Board recommended no FY2026 dividend to preserve liquidity.

Financial highlights

• Revenue was $4.404bn, up 7% YoY; EBITDA was $558m, up 20%; operating profit was $441m, up 22%; net profit attributable to equity holders was $322m, up 35%.

• Gross profit increased 37% to $504m, reflecting faster revenue growth than cost of sales and a $44m IAS 41 fair-value gain; cost of sales rose 5% to $3.944bn.

• Net finance costs rose 70% to $55m; profit before tax increased 33% to $382m, and basic EPS rose 35% to $1.10.

• Net cash from operating activities was $142m, down 41% YoY; investing cash outflow was $442m, including $338m for Enselco and $139m of PP&E investment.

• Working capital absorbed $361m, versus $103m in FY2025; cash fell 42% to $357m, while total cash outflow was $261m.

Outlook and guidance

• FY2027 outlook is cautious: export-route availability, security conditions, and the duration of Black Sea disruption will drive shipments, asset utilization, logistics costs, inventory turnover, and working capital.

• Alternative routes remain operational but have lower capacity and higher costs than deep-water Black Sea ports; restoration of damaged facilities and additional logistics investment are priorities.

• Ukraine’s 2026/27 grain harvest is projected at ~64m tons, up 9% YoY, while sunflower seed harvest is estimated at 12.2m tons, up 17%; final yields and export conditions remain uncertain.

• Farming production costs are expected to rise ~9% YoY for the next harvest, including farmland lease payments up 27%; profitability depends on crop prices absorbing higher production and export logistics costs.

• Oilseed processors expect improved feedstock availability, but a projected ~10m-ton sunflower supply-capacity gap and constrained exports may continue to pressure margins.