Ansell (ASX: ANN) – Ansell FY26 Full Year Results Presentation

Ansell delivered adjusted earnings per share growth of 18.5% to 148.6 US cents in FY26, the strongest result since FY21, as the company navigated a year marked by US tariff implementation, Middle East supply chain disruptions, and volatile input cost inflation. The result reflected not just top-line growth of 5.0% on an organic constant currency basis, but also margin expansion of 90 basis points to 15.0%, showing the company’s ability to drive profitability even in challenging trading conditions.

The margin improvement came from two main sources. First, sales growth concentrated in higher-value market segments and geographies, particularly North America and EMEA, contributed 70 basis points of gross profit expansion. Second, supply chain productivity initiatives offset significant headwinds from US tariffs and cost inflation stemming from the Middle East crisis. The company pursued tariff mitigation through sourcing optimization and pricing actions, which it notes were moderately dilutive to gross margins, but the achievement of margin expansion against these pressures demonstrates operational discipline.

Segment performance showed balanced strength. Industrial sales grew 5.4% to $947.3 million with EBIT margin expanding 70 basis points to 18.0%, while Healthcare posted 8.0% sales growth to $1,192.9 million with 20.3% EBIT growth and 150 basis points of margin expansion to 14.3%. Healthcare’s outperformance was driven by accelerating demand for Cleanroom solutions, particularly in the US, where Ansell’s growth rate was 1.8 times the company average. The acceleration in the second half of the year, with Healthcare growth reaching 14.6%, suggests momentum entering FY27.

Capital management demonstrated discipline alongside growth investment. Operating cash flow of $441.1 million converted 113% of adjusted EBITDA, allowing the company to fund $118 million in share buybacks while reducing net leverage to 1.3 times adjusted EBITDA from 1.6 times. The company maintained capex discipline at $49 million while completing the India Surgical manufacturing facility, positioning itself for higher-growth manufacturing support in a less capital-intensive structure going forward.

Management’s FY27 guidance ranges adjusted EPS between 158 and 170 US cents, implying 6% to 14% growth, contingent on constant currency sales growth driven by higher volumes and pricing. The company expects operational excellence initiatives to continue contributing productivity gains. Capital allocation remains focused on growth capex in higher-return segments and geographies, with the $200 million buyback program continuing.

Investors should monitor whether the company can sustain margin expansion as input cost pressures moderate, the pace of Cleanroom and US industrial market growth in H1 FY27, and whether tariff policy changes create either upside from reduced costs or downside from inventory normalization.

View the full ASX announcement (PDF)

About Ansell Limited (ASX: ANN)

Ansell Limited is a global manufacturer of protective equipment, specializing in gloves and bodywear for healthcare and industrial applications. The company generates approximately 55 percent of revenue from healthcare markets where it supplies surgical gloves, examination gloves, and protective garments to hospitals and medical facilities. Its industrial division serves automotive, chemical, construction, mining, and other sectors across major markets in North America, Europe, Asia-Pacific, and Latin America.

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