Wesfarmers (WES) H2 2025 earnings summary

Executive summary

• Net profit after tax increased 14.4% year-over-year to $2,926 million, with profit excluding significant items up 3.8% to $2,653 million.

• Revenue rose 3.4% to $45,700 million, driven by strong performances in Bunnings and Kmart Group, supported by value positioning and productivity initiatives.

• Portfolio actions included the sale of Coregas for $770 million, wind-down of Catch, and bolt-on acquisitions in Officeworks and Health.

• Proposed capital management distribution of $1.50 per share, including a capital return and special dividend, subject to approval.

• Continued focus on sustainability, with a 9.3% reduction in Scope 1 and 2 emissions and $96.5 million in community contributions.

Financial highlights

• EBIT grew 11.9% to $4,465 million; EBIT excluding significant items up 4.9% to $4,186 million.

• Basic EPS increased 14.3% to 258.0 cps; EPS excluding significant items up 3.7% to 234.0 cps.

• Free cash flow increased 6.9% to $3,446 million; group operating cash flows decreased 0.6% to $4,568 million.

• Net financial debt at $4.2 billion, with debt to EBITDA (excluding significant items) reduced to 1.7x.

• Full-year ordinary dividend increased 4.0% to 206 cps; total distribution to shareholders for the year is $3.56 per share.

Outlook and guidance

• Retail divisions are well positioned for profitable growth, leveraging omnichannel investments and value credentials.

• Bunnings, Kmart Group, and Officeworks reported strong sales momentum in the first eight weeks of FY26.

• Net capital expenditure guidance for FY26 is $1,000–$1,300 million, excluding potential property sale proceeds.

• Cost pressures from labour, energy, and supply chain expected to persist in FY26; productivity initiatives to mitigate impacts.

• Industrial businesses' performance remains subject to commodity prices, FX, and seasonal factors.