Key Highlights

  • Wesfarmers shares trade at $72.82, down 0.95% on the day and down 21.29% over the past twelve months.
  • The diversified conglomerate's businesses include Bunnings, Kmart Group, Officeworks, WesCEF and Wesfarmers Health.
  • Recent full-year results showed Underlying Profit growth led by Bunnings and Kmart, even as statutory profit and Operating Cash Flow declined.
  • Total dividends for the year increased, supported by growth in underlying earnings.

Wesfarmers Limited (ASX:WES) is a diversified Australian conglomerate whose businesses span home improvement through Bunnings, discount retail through Kmart Group, office supplies through Officeworks, health through Wesfarmers Health, and chemicals, energy and fertilisers through WesCEF. Wesfarmers shares last traded at $72.82, down 0.95% on 11 September 2026, and the stock is down 21.29% over the past twelve months.

Wesfarmers' Recent Results and Business Update

Wesfarmers' results for the year to 30 June 2026 showed statutory net profit after tax declining slightly on the prior year, though profit excluding significant items recorded in the prior period rose. Group Revenue increased, and Earnings before interest and tax excluding significant items grew, with management pointing to strong contributions from Bunnings Group, Kmart Group and WesCEF.

Bunnings and Kmart Group's everyday low pricing strategies continued to drive sales and earnings growth, helping offset broader cost pressures, while Officeworks' earnings reflected one-off costs tied to a transformation program the company said is expected to support long-term earnings growth. Wesfarmers Health delivered higher earnings as its own transformation gained momentum.

WesCEF's earnings were affected by the timing of higher ammonia prices linked to Middle East conflict disruption, though the division benefited from a positive operational performance and an improved contribution from its lithium business, with production at its associated refinery affected by intermittent odour issues during the year.

Group operating cash flows declined for the year, reflecting deliberate Investment in Working Capital across WesCEF and Health. The company paid a capital management distribution during the year and, reflecting the increase in underlying profit, the board determined to lift the final dividend, taking total Ordinary Dividends for the year higher than the prior period.

Catalysts to Watch

  • Continued sales and earnings momentum at Bunnings and Kmart Group.
  • Progress on the Officeworks transformation program and its expected contribution to long-term earnings.
  • Ramp-up of the Mt Holland lithium project and its contribution to WesCEF earnings.
  • Resolution of the odour issues affecting the associated lithium refinery's ramp-up.

Risks to Monitor

  • Cost of living pressures affecting household spending across the group's retail businesses.
  • Commodity price movements, including ammonia and lithium prices, affecting WesCEF earnings.
  • Higher net Capital Expenditure and borrowing costs guided for the year ahead.
  • Execution risk associated with ongoing transformation programs at Officeworks and Wesfarmers Health.

Conclusion

Wesfarmers shares have declined over the past year even as the company reported growth in underlying profit, led by its Bunnings and Kmart Group retail businesses. Whether the stock is worth keeping on a watchlist may depend on continued retail momentum and the pace of the WesCEF lithium ramp-up.