Logistics giant Brambles (ASX:BXB) reported a robust first-half performance for fiscal year 2026, characterised by significant margin expansion and a notable upgrade to its free cash flow guidance.
The company’s H1 FY26 results reveal a 7% increase in underlying profit at constant currency, reaching US$792 million.
The growth was primarily fueled by operational efficiencies and productivity improvements across its supply chain, which offset US$15 million in one-off restructuring costs.
While sales revenue saw a modest 2% rise to US$3.53 billion, Brambles demonstrated strong pricing power to recover inflationary costs despite flat volumes caused by softening consumer demand.
The bottom line showed even greater momentum, with basic earnings per share grew 13%, aided in part by a strategic on-market share buy-back program.
Shareholders are set to benefit directly from this performance, as the board declared an interim dividend of 23 US cents per share, a 21% jump over the previous year.
The company has narrowed its FY26 sales revenue growth guidance to 3-4% and significantly upgraded its free cash flow expectations to between US$950 million and US$1.1 billion.