Brambles Ltd reported a 4% rise in underlying profit to $1.49 billion for the year ended June 30, 2026, as revenue grew 2% to $7.04 billion at constant currency. The results were constrained by U.S. repair capacity issues, which shaved approximately $90 million from fourth-quarter earnings—$30 million more than initially forecast in May 2026.
Excluding the U.S. impact, normalized profit would have increased 11%, with underlying profit margins expanding 1.8 percentage points instead of the reported 0.6-point gain to 21.2%. Regional performance varied, with CHEP Americas flat at $751 million profit, CHEP EMEA holding steady at $728 million, and CHEP Asia-Pacific rising 8% to $215 million. Free cash flow before dividends increased 16% to $1.05 billion, marking the second consecutive year above $1 billion.
The company outlined a recovery plan targeting service stabilization by the end of the first half of fiscal 2027, including a $25 million investment to add repair benches and eight new service centers by fiscal 2028. Brambles purchased 1.3 million new pallets in the fourth quarter and expects to acquire roughly 2 million more in the first half of fiscal 2027 to address order fulfillment challenges. Subcontractor transitions are underway at 15 service centers, with three completed in the quarter and the remainder slated for completion by fiscal 2027.
Fiscal 2027 guidance calls for sales growth of 2–4% and underlying profit growth of 2–6% at constant currency. Free cash flow before dividends is projected at $800–950 million, while pooling capital expenditure is expected to range between 13% and 15% of sales. The company plans to spend $350–400 million on non-pooling capital and approximately $120 million on digital initiatives, including $110 million for Serialisation+ rollout decisions expected in the third quarter of fiscal 2027.
Shareholder returns totaled $1.2 billion via dividends and buybacks, with a 64% payout ratio and a dividend yield of about 3%. Brambles has paid dividends for 35 consecutive years, declaring 46.15 cents per share for fiscal 2026. The stock fell 1.49% to $19.18 following the announcement, bringing its year-to-date decline to 14% amid a 52-week range of $16.18 to $26.93.
