Harvey Norman (ASX:HVN) has reported a robust financial performance for the half-year ended Dec. 31, 2025, headlined by a 16.5% increase in profit before tax to $466.3 million.
The result represents a $66 million jump compared to the previous corresponding period.
Even when excluding net property revaluations and lease impacts, the underlying profit grew by 20.1% to $372.8 million, driven by solid contributions from franchising operations, overseas retail, and the company's property portfolio.
Total system sales revenue rose 6.9% to $5.16 billion, underpinned by a 4.8% increase in Australian franchisee sales and an 11.6% growth in company-operated overseas retail sales.
Chairman Gerry Harvey attributed the growth to sustained demand for AI-enabled computing and mobile devices, alongside steady performance in core homemaker categories.
The company also demonstrated strong operating discipline, reducing total operating expenses to 17.8% of system sales, down from 18% in H1 FY25.
The franchising operations remained a primary profit driver, contributing $206 million, while the overseas retail segment saw a 35.6% profit increase to $92.1 million.
High-performing markets included New Zealand, Singapore, and Malaysia, which helped offset initial establishment losses in the United Kingdom.
The company increased its fully-franked interim dividend by 20.8% to 14.5 cents per share.