Key Highlights

  • Sales increased 6.8% to $2,140.2 million, with organic constant-currency growth of 5.0%
  • Adjusted EBIT Margin expanded to 15.0% from 14.1%, lifting adjusted EBIT 14.1% to $321.9 million
  • Adjusted Earnings Per Share rose 17.8% to US148.6 cents, in the upper half of guidance
  • Operating cash flow increased 156.3% to $270.1 million, funding $118.4 million of share buybacks

Ansell Limited (ASX:ANN), the global safety solutions company, reported its results for the financial year ended 30 June 2026 on 24 August 2026, recording sales and earnings growth that accelerated through the second half of the year.

Sales and Regional Performance

Group sales for FY26 rose 6.8% to $2,140.2 million from $2,003.3 million in FY25, translating to organic constant-currency growth of 5.0%. On an adjusted basis, excluding temporary order pattern effects in both years, growth improved to 5.7%. The scientific vertical performed notably, with Cleanroom sales up 10% on an adjusted basis, while sales in the United States also grew 10% on an adjusted basis, reflecting momentum in the company's identified strategic markets.

Earnings and Margin

Adjusted EBIT increased 14.1% to $321.9 million from $282.1 million, with the adjusted EBIT margin expanding to 15.0% from 14.1%, an improvement of 90 basis points on a reported basis. Management attributed the margin gain to a higher proportion of sales in higher-margin market segments, increased synergies from the KBU business, and improved Supply chain productivity, which together offset the effects of US tariffs and cost Inflation stemming from the Middle East crisis. Statutory EBIT rose 74.3% to $320.5 million from $183.9 million, while statutory NPAT more than doubled to $208.6 million from $101.6 million. Adjusted NPAT increased 15.8% to $212.3 million, and adjusted EPS rose 17.8% to US148.6 cents, including a net benefit of US3.3 cents from non-recurring items.

Cash Flow and Balance Sheet

Operating cash flow increased 156.3% to $270.1 million from $105.4 million in FY25, with cash conversion of 113%, supported by a $17 million reduction in net working capital. This cash generation funded $118.4 million in share Buybacks during the year and contributed to a $52.3 million reduction in net debt. Net Debt to adjusted EBITDA improved to 1.3x, with the company holding $752 million in cash and undrawn bank facilities at year end. Currency movements were favourable to sales by $46.6 million and to EBIT by $8.6 million, although a $13.8 million net foreign exchange loss on hedge contracts, compared with a $0.9 million loss in FY25, made the overall currency impact on EBIT unfavourable by $4.3 million when hedge movements are included.

Accelerated Productivity Investment Program

Ansell's multi-year Accelerated Productivity Investment Program (APIP), launched in 2023, reached its recurring pre-tax savings target of $50 million during the year following the completion of organisational and Manufacturing changes. Attention now turns to the program's IT phase, with ERP system upgrades planned to begin in North America in FY27. Total one-off cash costs for the program remain guided at $85 million to $90 million, of which $69 million has been incurred since inception, including $11 million in FY26.

Dividend and Capital Return

The board determined a final unfranked Dividend of US41.5 cents per share at a Payout Ratio of 50%, bringing the full-year dividend to US68.1 cents, up 35.7% on FY25's US50.2 cents, at a payout ratio of 45%. Ansell also confirmed it will continue its existing $200 million on-market share buyback program into FY27, having completed $118.4 million of purchases during FY26.

Outlook for FY27

Ansell guided to FY27 adjusted EPS of between US158 cents and US170 cents, up from US148.6 cents in FY26, supported by constant-currency sales growth from both Volume and pricing actions. The company also flagged a foreign exchange benefit of approximately $9 million, net interest costs of approximately $43 million, a book tax rate of 23.5% to 24.5%, one-off costs of approximately $15 million related to ERP implementation, and Capital Expenditure of $45 million to $55 million.

Conclusion

Ansell's FY26 results reflect an acceleration in sales and earnings across most of the business, with margin expansion, cash generation and dividend growth all improving on the prior year. With FY27 guidance pointing to further EPS growth and continued investment in productivity initiatives, the company's near-term trajectory will depend on how effectively it manages Tariff and currency exposures alongside its planned ERP rollout.