Ansell Limited (ASX:ANN): What Do FY26 Margin Gains and FY27 Earnings Guidance Show?

Aditi Sarkar

27 October 2026 10:33 PM AEDT

Ansell Limited (ASX:ANN): What Do FY26 Margin Gains and FY27 Earnings Guidance Show?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Ansell Limited (ASX:ANN) recorded FY26 sales of USD 2,140.2mn, up 6.8% YoY.
Adjusted EBIT increased 14.1% YoY to USD 321.9mn; its margin reached 15.0%.
FY26 operating cash flow rose 156.3% YoY to USD 270.1mn.
The company guided to FY27 adjusted EPS of US158–170 cents, excluding buyback effects.

Ansell Limited (ASX:ANN) manufactures personal protective equipment for healthcare and industrial workplaces, including examination gloves, surgical products and specialist hand protection. Its FY26 results showed growth in sales and adjusted earnings across both operating divisions. Ansell shares were quoted at AUD 46.26 on 27 October 2026, while the company’s reported financial performance and FY27 outlook place attention on demand for specialist protection products, productivity initiatives and cost recovery.

Company Business

Ansell Limited (ASX:ANN) operates through Healthcare and Industrial segments, serving users across medical facilities, laboratories, manufacturing sites and other workplaces. Healthcare includes examination and single-use gloves, surgical protection and cleanroom products. Industrial supplies mechanical and chemical hand and body protection, including products used where cut resistance, chemical barriers or precision handling are required.

The business operates internationally, with exposure to North America, Europe and other regions. Its brands include HyFlex, MICROFLEX, GAMMEX and AlphaTec. Manufacturing and sourcing arrangements affect product availability and costs.

Recent Development

In August 2026, Ansell Limited (ASX:ANN) released results for the year ended 30 June 2026. The company reported organic constant-currency sales growth of 5.0%, or 5.7% after adjusting for temporary order-pattern effects. Cleanroom sales grew 10.0% on that adjusted basis, and the company also cited 10% adjusted sales growth in the United States.

Industrial reported FY26 sales of USD 947.3mn, up 5.4% on a reported basis. Its mechanical protection business benefited from new products, while chemical protection demand improved in the second half. Healthcare generated USD 1,192.9mn of sales, an 8.0% reported increase, supported by surgical and cleanroom demand. Management also noted around USD 15mn of second-half examination and single-use sales linked to customer stocking ahead of price changes.

Ansell continued work on its Accelerated Productivity Investment Program, reporting that its USD 50mn recurring annual pre-tax savings target had been achieved. The next phase includes commercial enterprise-resource-planning upgrades, with the North American rollout planned to begin during FY27. Managing Director and Chief Executive Officer Nathalie Ahlström commenced in February 2026.

Financial Performance and Sector Context

Ansell Limited (ASX:ANN) reported FY26 revenue of USD 2,140.2mn versus USD 2,003.3mn in FY25, an increase of 6.8% YoY. Adjusted EBIT increased from USD 282.1mn to USD 321.9mn, up 14.1%, with the adjusted EBIT margin rising from 14.1% to 15.0%. Statutory net profit after tax advanced from USD 101.6mn to USD 208.6mn, while adjusted net profit increased 15.8% to USD 212.3mn.

Industrial adjusted EBIT increased 9.7% to USD 170.6mn. Healthcare adjusted EBIT rose 20.3% to USD 170.7mn. Higher sales in specialist categories, sourcing efficiencies and acquisition synergies supported operating margins. Adjusted earnings per share increased from US126.1 cents to US148.6 cents; the FY26 figure included a net non-recurring benefit of US3.3 cents.

Operating cash flow reached USD 270.1mn, compared with USD 105.4mn in FY25, and reported cash conversion was 113%. The company completed USD 118.4mn of share buybacks in FY26 and reduced net debt by USD 52.3mn. Net debt to adjusted EBITDA stood at 1.3 times at year-end. The full-year dividend was US68.1 cents per share, compared with US50.2 cents in FY25.

Protective-equipment demand reflects medical activity, industrial production and workplace safety requirements. Ansell identified US tariffs, freight and Middle East-related costs as pressures requiring sourcing adjustments and pricing action. Foreign exchange also influences reported results.

Risks to Consider

Ansell Limited (ASX:ANN) faces changes in hospital purchasing, industrial activity and cleanroom orders. Tariffs, shipping disruption, material costs and the timing of price increases can influence margins. Other risks include manufacturing interruptions, product-quality obligations, foreign exchange and ERP implementation delays. Temporary customer stocking can distort period comparisons.

What to Watch Next

The company expects FY27 adjusted EPS of US158–170 cents, excluding the effects of its on-market share buyback. Its published assumptions include approximately USD 43mn of net interest expense, USD 45–55mn of capital expenditure and approximately USD 15mn of one-off pre-tax costs, mainly for ERP implementation. Ansell Limited (ASX:ANN) has also scheduled its annual general meeting for 9 November 2026. Subsequent disclosures may clarify order volumes, tariff recovery, the progression of ERP upgrades and productivity benefits.

Key Insights

Ansell Limited (ASX:ANN) finished FY26 with higher sales, adjusted earnings and operating cash flow. Healthcare and Industrial both increased adjusted EBIT, although individual product categories had different demand patterns. The company’s FY27 earnings range and planned systems investment provide measurable monitoring points, alongside tariff exposure, customer purchasing activity and working-capital movements. These factors will help frame the next reporting period without establishing a prediction about the share price.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.