Brambles Limited delivered FY2026 statutory results showing solid momentum, with revenue rising to US$7,042.9m from US$6,669.7m and operating profit reaching US$1,494.4m, up 10% at constant currency despite persistent foreign exchange headwinds.
Continuing operations drove steady performance, with profit climbing to US$948.5m from US$864.2m. However, discontinued operations delivered the standout contribution with a swing to US$954.0m profit from just US$31.8m a year earlier. This dramatic improvement from discontinued operations, which ties to business separations during the period, significantly enhanced group profitability and total earnings per share, though investors need to carefully review the underlying drivers and cash realisation in the full annual report to assess sustainability.
The tax position improved materially, with tax expense declining 5% at constant currency while profit before tax jumped 12%, reflecting a tighter effective tax rate. Basic earnings per share from continuing operations advanced to 69.9 US cents from 62.5 US cents, with total EPS including discontinued operations at 70.3 US cents versus 64.8 US cents previously.
Dividend policy shifted notably, with total ordinary dividends for the year reaching 46.15 US cents per share against 39.83 US cents in FY2025, a 15.8% increase. The final dividend of 23.15 US cents is 20% franked. The payout ratio moved to 64% from 62%, indicating management’s confidence in cash generation alongside retained flexibility for reinvestment or future capital deployment.
The core narrative for investors hinges on the sustainability of results excluding one-off discontinued operations benefits. Revenue growth of approximately 5.6% and double-digit operating profit growth at constant currency demonstrate the core logistics business has held ground, yet the reported earnings are significantly elevated by exceptional items. Close examination of the full annual report, particularly the discontinued operations disclosures, will be critical to validate whether this enhanced dividend can be maintained from underlying operating cash flow and confirm the resilience of Brambles’ continuing operations in the year ahead. This announcement is price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About Brambles Limited (ASX: BXB)
Brambles Limited is a supply chain logistics company that operates under the CHEP brand across approximately 60 countries. The company provides reusable pallets and containers, along with logistics platforms to transport goods across supply chains for consumer staples, retail, automotive, and general manufacturing industries. Headquartered in Sydney, Australia, it operates through three geographical segments: CHEP Americas, CHEP EMEA, and CHEP Asia-Pacific.
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