Australian conglomerate Wesfarmers (ASX:WES) announced a robust statutory net profit after tax of $1,603 million for the half-year ended Dec. 31, 2025, marking a 9.3% increase compared to the previous year.
Despite "challenging market conditions" and subdued residential construction activity, the group saw revenue climb to $24.2 billion, driven by disciplined execution across its core retail and industrial divisions.
Managing Director Rob Scott attributed the success to strong earnings from heavyweights Bunnings and Kmart Group, alongside the chemicals and fertiliser arm, WesCEF.
Bunnings continues to be the group's engine room, reporting growth across all product categories and regions.
Meanwhile, Kmart Group's performance was bolstered by the popularity of its Anko range, though overall gains were slightly tempered by softer apparel sales at Target.
A significant highlight of the report was the progress of the Covalent Lithium joint venture.
The project's refinery was completed below cost estimates and is now producing high-quality lithium hydroxide, positioning Wesfarmers to capitalise on the rebounding lithium market.
While officeworks and the industrial and safety divisions faced restructuring costs and transformation hurdles, the health division saw earnings rise, supported by a strong performance from Priceline Pharmacy.
Beyond the balance sheet, Wesfarmers reported a 27.8% reduction in Scope 1 and 2 emissions, alongside improvements in safety metrics.
The company’s interim ordinary dividend increased by 7.4% to 102 cents per share.