Ridley (RIC) H2 2026 earnings summary

Executive summary

• FY 2026 saw significant earnings growth, with underlying EBITDA up 61.8% to AUD 157.8 million and underlying NPAT up 41.5% to AUD 61.0 million, driven by the acquisition of Incitec Pivot Fertilisers and growth in Bulk Stockfeeds and Packaged Feeds.

• The acquisition of Incitec Pivot Fertilisers nearly doubled the earnings base, diversified the business, and enhanced market leadership across all segments.

• Integration efforts included leadership enhancements, a new PMO, and a capital raise via ANREO, supporting future growth and resilience.

• Disciplined capital management was supported by positive cash generation, a progressive dividend, and robust balance sheet with leverage at 0.85x.

Financial highlights

• Underlying EBITDA rose 61.8% to AUD 157.8 million, with strong contributions from Fertilisers, Bulk Stockfeeds, and Packaged Feeds.

• Underlying NPAT reached AUD 61.0 million (+41.5% vs. pcp); statutory NPAT was AUD 27.6 million, impacted by significant items.

• Final fully franked dividend of AUD 0.0535 per share, representing a 64% payout of underlying NPAT.

• Net debt at 30 June 2026 was AUD 296 million, up from a net cash position of AUD 64 million the prior year, mainly due to the acquisition.

• Significant items included a AUD 37.5 million gain on bargain purchase (IPF acquisition), AUD 34.6 million in acquisition-related costs, and a AUD 31.8 million non-cash write-off for Novaq Pro®.

Outlook and guidance

• FY 2027 is expected to see earnings growth in all segments, with full-year contribution from Fertilisers, volume and capacity gains in Bulk Stockfeeds, and operational recovery in Packaged and Ingredients.

• Dividend payout ratio target remains at 50%-70% of NPAT.

• Ongoing focus on strong cash conversion and working capital management, with tax rate expected to normalize between 26%-30%.