Brambles Stock Earnings Reports

Brambles delivered a strong FY25 with 3% sales growth, 10% underlying profit growth, and free cash flow before dividends exceeding USD 1.0 billion (USD 1.095bn). Performance was driven by net new business wins (particularly in the U.S. and Europe), asset-efficiency gains (halving uncompensated pallet losses vs FY21 and reducing pooling CapEx-to-sales), supply chain and overhead productivity, and digital initiatives (including Serialisation+ and smart assets). The company declared a 17% higher dividend and completed USD 403m of buybacks, and announced up to USD 400m further buybacks for FY26. FY26 guidance: sales growth 3–5%, underlying profit growth 8–11%, free cash flow before dividends of USD 850–950m, pooling CapEx-to-sales ~14–16% (with ~0.5pp benefit from using excess U.S. plant stock), and continued investment in Serialisation+ (targeting a >15% ROCI for Serialisation+ when fully deployed). Management reiterated a target of at least 3 percentage points of margin expansion by FY28 vs FY24 (up from prior 2pp target) and plans ~USD 30m restructuring costs in H1 FY26 to deliver ~USD 55m annualized overhead savings by FY27. Key risks noted: subdued consumer demand / macro uncertainty affecting like-for-like volumes, excess U.S. pallets (≈4m) expected to normalize by H1 FY27, and technology/scale choices for Serialisation+ that will determine timing and capital intensity.