Brambles Limited reported a 4% increase in underlying profit for the fiscal year ended June 30, 2026, despite a $90 million adverse impact from U.S. repair-capacity constraints. Sales revenue rose 2% year-over-year to $5.1 billion, while underlying profit margin expanded by 0.6 percentage points to 17.3%. Excluding the U.S. capacity issues, underlying profit would have climbed 11%, the company said.
The pooled-pallet operator also announced a 16% increase in total dividends to $0.4615 per share, yielding 3.32% based on a closing price of $19.13. Free cash flow before dividends exceeded $1 billion for the second consecutive year, supporting the dividend hike and a $509 million share buyback program. Total cash returns to shareholders reached approximately $1.2 billion.
Regional performance remained broadly stable, with CHEP Americas and CHEP EMEA both reporting 2% revenue growth, while CHEP Asia-Pacific saw a 3% increase. Like-for-like volumes declined 2%, offset by a 1% price realization. New business growth accelerated 3% year-over-year.
Guidance for fiscal 2027 projects sales growth of 2% to 4%, with underlying profit expected to rise 2% to 6%, weighted toward the second half as U.S. operational issues ease. The company anticipates a $35 million to $55 million adverse impact from U.S. repair-capacity constraints next year, down from the $90 million drag in FY26. Free cash flow before dividends is forecast between $800 million and $950 million.
Capital expenditures are projected at $350 million to $400 million for non-pooling investments, with an additional $120 million allocated to digital initiatives, including $110 million for the Serialisation+ program. Pooling capital expenditure is expected to range from 13% to 15% of sales. Repair capacity expansion plans include adding eight new service centers, a 20% increase from FY26 levels, with an investment of around $25 million. The company also plans to purchase an additional 2 million pallets in the first half of FY27.
Brambles shares fell 1.95% to $19.09, extending a 14% year-to-date decline. The stock has traded between $16.18 and $26.93 over the past 52 weeks. CEO Graham Chipchase emphasized the company's resilience amid operational challenges, stating that underlying profit excluding U.S. repair constraints rose 11% and that FY27 is expected to end in a strong position as cost pressures are addressed through productivity and pricing measures.
