Brambles has delivered earnings growth and over US$1 billion of free cash flow for FY26, demonstrating solid operational momentum despite navigating supply chain constraints and weaker consumer demand in key markets. The company reported underlying profit up 4% on sales revenue growth of 2%, with equal contributions from price realisation and volume expansion. Net new business growth of 3%, driven primarily by US and European pallet operations, provided a bright spot against softer like-for-like volumes across the broader portfolio.
However, this headline performance masks a more impressive underlying trajectory. Excluding the approximate US$90 million adverse earnings impact from US repair capacity constraints, underlying profit would have expanded around 11%, suggesting strong pricing power and productivity improvements that successfully offset persistent inflationary pressures and increased strategic investment. The company expects to resolve these constraints by the end of the first half of FY27 through targeted supply chain investments and pallet purchases, with management already executing against this timeline. Capital efficiency metrics remain robust, with the pooling capex-to-sales ratio holding at 12.9%, while Brambles progressively utilises 3.4 million excess pallets across the US through the end of FY28.
The cash generation story underpins confidence in management’s capital allocation strategy. Free cash flow before dividends came in at US$1,048.2 million, supporting a 16% increase in total dividends to 46.15 US cents per share. Basic earnings per share rose 6% for continuing operations, boosted by ongoing on-market share buybacks of US$509 million completed during the year. A current buyback program of up to US$400 million is tracking to completion in FY27. These capital actions generated total shareholder value creation of 9%, comprising 6% EPS growth and a 3% dividend yield.
For FY27, Brambles has guided to sales revenue growth of 2 to 4% at constant foreign exchange rates, with underlying profit expected to expand 2 to 6%. Investors should note the earnings trajectory is weighted toward the second half, with a mid-to-high single digit decline anticipated in the first half before a rebound to low double-digit growth in the second half. Free cash flow guidance of US$800 million to US$950 million suggests the cash generation story will remain resilient. The rollout of the Effortless Service Offer in Chile is building confidence in the Serialisation+ platform as a driver of future customer experience and operational performance gains.
Investors should monitor progress on resolving US repair constraints in coming months, execution of the FY27 capital plan, and updates to the Serialisation+ roadmap. This announcement is price sensitive material flagged as such 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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