Schaffer Corporation (SFC) H2 2026 earnings summary

Executive summary

• Statutory NPAT for FY26 was $22.2m, down from $24.3m in FY25, with strong recovery in Automotive Leather and significant gains from South Connect Jandakot.

• Automotive Leather rebounded in 2H26 after a JLR cyber-attack, winning new programs in Europe and China, positioning for growth in FY27.

• Delta posted a $1.3m loss due to tough industry conditions but ended FY26 with a strong order book for FY27.

• Group Investments NPAT rose 38% to $4.5m, driven by equity and property gains, offset by US property losses.

• South Connect Jandakot commenced construction of its first large building and contributed a $10.2m net unrealised after-tax gain on land value.

Financial highlights

• Total revenue for FY26 was $202.7m, down from $229.7m in FY25.

• EPS for FY26 was $1.63.

• Fully franked final dividend of $0.45 per share declared, matching FY25.

• Cash generated was $22.2m, with $12.3m in capex and $13.5m in dividends paid.

• Pre-tax net equity value of investments increased to $240.9m ($17.76/share), with 75% in property and South Connect Jandakot valued at $103.1m.

Outlook and guidance

• Automotive Leather expects 1H27 profitability at least similar to 2H26, with new program launches in Europe and China.

• Delta anticipates a return to profitability in 1H27, supported by a strong order book.

• Group remains cautious due to global economic and geopolitical uncertainties, with potential profit volatility in investments.