Wesfarmers Stock Earnings Reports

Wesfarmers reported a resilient 2025 result despite challenging trading conditions: net profit after tax increased 14.4% (3.8% excluding significant items). Key retail divisions (Bunnings, Kmart Group and Officeworks) delivered the majority of earnings growth—combined retail EBIT up 5.2% (6.4% H2 momentum). Bunnings grew sales 3.3% and EBIT (before property contributions) +4%; Kmart Group delivered ~9% EBIT growth on ~3.5% sales growth driven by productivity gains, app adoption and Kmart/Target integration. WesCEF earnings fell (lithium ramp and lower commodity prices weighed), but Covalent reached first product at the Kwinana refinery and lithium ramping will be a transitional 18-month process. Free cash flow was strong at $3.4bn (+6.9%); capital expenditure guidance for FY26 net is $1.0–1.3bn. The Board proposes a capital management distribution of $1.50/share (expected to be $1.10 capital return + $0.40 special dividend subject to ATO ruling and shareholder approval), taking FY25 total shareholder distribution to $3.56/share. Portfolio actions (Coregas sale, wind-down of Catch, divestments and property transactions) supported returns and balance sheet flexibility. ESG and safety metrics improved (injury rates down, Scope 1/2 emissions down 9.3%); Bunnings and Officeworks have reached 100% renewable energy. Outlook: modest consumer improvement, ongoing cost-of-doing-business pressures for B2B, continued focus on price, productivity and omnichannel investments, and an emphasis on selective capital allocation and shareholder returns.