Schaffer Corporation (ASX:SFC) has released its full-year results on the ASX before the opening bell on 19 August 2026. According to the Appendix 4E, group Revenue for the year to 30 June 2026 was $202.7 million, down 11.8 per cent. Profit after tax attributable to members came in at $22.177 million, against $24.257 million a year earlier, a fall of 8.6 per cent. Basic and Diluted Earnings per Share were 163.5 cents, down from 178.5 cents.

The divisional detail explains the shape of the year. Automotive Leather, the group's Howe business, generated revenue of about $176.4 million (FY25: $185.5 million) and net profit of $11.8 million (FY25: $16.3 million). The company said the first half was disrupted when a Cybersecurity attack on customer Jaguar Land Rover halted production for roughly two months, with JLR recovering from November 2025. The second half was materially stronger: sales of about $95.2 million, up 17 per cent half on half, and profit up 57 per cent to $7.2 million.

Delta, the building materials arm, swung to a $1.3 million loss from a $4.9 million profit, which management attributed to a tough industry environment, a shortage of large-scale Western Australian infrastructure work and competition compressing margins.

Offsetting that, the property and Investment side did the heavy lifting. The South Connect Jandakot industrial development contributed net profit of $10.6 million (FY25: $3.0 million), and group investments $4.5 million (FY25: $3.3 million).

The final Dividend was held at 45 cents fully franked, taking the full year to 90 cents. The Record Date is 4 September 2026 and payment is due 18 September 2026.

What the Company Actually Does

Schaffer is a Perth-based industrial and investment group with an unusual structure for its size: two Manufacturing businesses — Howe, which supplies automotive leather to global vehicle programs, and Delta, which makes building materials for the Western Australian construction market — sitting alongside a substantial portfolio of property and listed equities.

That portfolio is the part many shareholders actually own the stock for. The company put its pre-tax net Equity value at $240.9 million, or $17.76 per share, up from $227.3 million and $16.73 per share a year earlier. Roughly three-quarters of it is property, with the balance in equities and cash and fixed income. Net tangible Assets per share stood at $18.03.

The Bull Case

The stock is trading barely above its stated net tangible assets of $18.03, which means the market is ascribing very little value to two operating manufacturing businesses on top of the asset base. The second-half turn in Automotive Leather is tangible rather than promised, and the company has flagged new programs — a European Jaguar Land Rover launch late in the first half of FY27, plus Chery and Mercedes programs in China early in 1H27. Management said Automotive Leather profitability in the first half of FY27 should be at least similar to the second half of FY26, and that Delta should return to profit on a strong order book. The dividend has been maintained through a weaker year, which for an income-oriented register is the point.

The Risks

Customer concentration is the obvious one: a cyber incident at a single automotive customer cost Schaffer roughly two months of production in the first half. Automotive leather also faces a structural question as manufacturers experiment with synthetic and vegan interiors. Delta is exposed to a Western Australian construction cycle that has clearly turned against it, and a strong order book is not a delivered margin. Jandakot carries construction, leasing and valuation risk, and with 10-year yields near 5.07 per cent the discount rates applied to industrial property are not getting friendlier. And Liquidity cuts both ways: on days like this, a few thousand shares set the price. The company itself warned of "high levels of global geopolitical and economic uncertainty".

What Happens Next?

Near-term dates are fixed: the 45 cent final dividend carries a 4 September record date and is paid 18 September 2026. Beyond that, the tests are whether Delta delivers the promised return to profit in 1H27, whether the new China and Europe leather programs launch on schedule, and whether the Jandakot Warehouse completes and leases up into calendar 2027.

Bottom Line

Schaffer's FY26 was a down year at the profit line — revenue off 11.8 per cent, earnings per share down 15 cents — yet the market marked the stock higher because the parts investors care about held: a maintained 90 cent fully franked dividend, net tangible assets of $18.03 against a $19.95 share price, and a genuine second-half recovery in the leather business. The offset is real risk: a concentrated automotive customer base, a Delta division currently loss-making, and a property development that is the group's biggest single exposure. The 2.84 per cent gain was struck on 9,290 shares, so it should be read as a considered repricing by a small number of holders rather than a market-wide verdict. This is not personalised financial advice.

  • What is Schaffer's dividend yield?
  • How much of Schaffer is property assets?
  • What caused the revenue decline in FY26?
  • Is Schaffer's dividend sustainable?
  • What are Schaffer's main Business segments?
  • What is the status of the Jandakot property development?
  • What new programs is Schaffer launching?

19 August 2026