What is the estimated impact of fuel costs on Inghams (ASX:ING) for FY26?

Inghams expects rising fuel prices and surcharges linked to the Middle East conflict to create a net hit of $7 million to $10 million for the current financial year. These costs represent a direct headwind to margins, though the company is attempting to offset them through internal efficiencies.

How is Inghams (ASX:ING) managing rising feed costs?

The company utilizes a strategic procurement policy that provides three to nine months of forward cover, meaning current feed prices are largely locked in. While Inghams anticipates higher feed costs in the 2026–27 period, the impact on the fiscal year ending June 30, 2026, is expected to be minimal.

What is the current EBITDA guidance for Inghams (ASX:ING) in 2025–26?

Inghams has reaffirmed its underlying EBITDA forecast of between $180 million and $200 million for the 2025–26 period. Maintaining this guidance despite rising fuel and packaging costs suggests management is confident in its ability to manage operational expenses.

What are the key details of the Inghams (ASX:ING) cost-cutting program?

Inghams is currently executing an aggressive cost-reduction strategy designed to save between $60 million and $80 million. This program is a critical component of the investment thesis, as it is intended to neutralize inflationary pressures in fuel, feed, and packaging.

Why is the Middle East conflict affecting an Australian poultry producer like Inghams?

The conflict has led to increased global energy volatility, resulting in higher fuel prices and shipping surcharges that impact Inghams' supply chain and distribution network.

Inghams warns rising fuel costs hit profits

Written by Mahathir BayenaPublished May. 11 2026Last Updated May. 11 2026

Poultry giant Inghams (ASX:ING) warned that the conflict in the Middle East is driving a surge in fuel prices and surcharges, with an estimated net impact of $7 million to $10 million for the current financial year.

While the company anticipates further pressure on feed costs heading into 2026–27, it expects the immediate effect on the year ended June 30 to remain minimal due to a strategic procurement policy that secures three to nine months of forward cover.

To combat these rising expenses—including emerging costs in packaging—Inghams is aggressive with a large-scale cost-cutting programme targeting savings of $60 million to $80 million.

Despite the logistical headwinds, the group remains optimistic, reaffirming its underlying EBITDA forecast of $180 million to $200 million for the 2025–26 period.

At the time of reporting, Inghams' share price was $1.78.