Wesfarmers Stock Earnings Reports

Wesfarmers reported a solid FY2025 result despite challenging trading conditions, with net profit after tax up 14.4% (3.8% excluding significant items). Retail divisions drove performance: Bunnings delivered 3.3% sales growth and +4% EBIT (before property contributions), Kmart Group delivered ~9% earnings growth and strong digital engagement, and Officeworks posted modest sales and earnings growth. WesCEF earnings fell, weighed by lower commodity prices and a $59m contribution loss from the lithium business during refinery ramp-up, although first product was achieved at the Kwinana lithium hydroxide refinery. The Board proposed a capital management distribution of $1.50/share (expected to comprise a $1.10 capital return and $0.40 fully franked special dividend) taking total shareholder distributions for the year to $3.56/share, subject to ATO ruling and shareholder approval. Free cash flow increased to $3.4bn, net CapEx guidance for FY2026 is $1.0–1.3bn (excluding potential sale-and-leaseback proceeds), and the balance sheet remains strong with debt/EBITDA ~1.7x (1.6x after Coregas proceeds) and ~$1.7bn available bank facilities. Key portfolio actions included the sale of Coregas, wind-down and capability transfers from Catch, BPI property structure wind-up and partial sale-and-leaseback activity, and small bolt-on acquisitions. Sustainability and safety metrics improved (injury frequency and scope 1/2 emissions reductions), and management emphasized continued investment in omnichannel, productivity, and new growth platforms (Health, retail media, Anko Global). Lithium (Covalent) will be in a ramp-up/transitional phase over the next ~18 months, and management highlighted ongoing emphasis on capital discipline and shareholder returns.