Key Highlights

• Ansell reported FY26 sales of US$2,140.2 million, up from US$2,003.3 million, an increase of 6.8 per cent as reported and 5.0 per cent on an organic constant-currency basis.

• Healthcare, which sells surgical and examination gloves and related products, had sales of US$1,192.9 million and adjusted EBIT of US$170.7 million, up 20.3 per cent.

• About US$12 million of Tariff refunds was received in July 2026, and the timing of the remainder is uncertain.

• Net Debt to adjusted EBITDA was 1.3 times at 30 June 2026, with net debt reduced by US$52.3 million.

How does a global protective equipment maker raise profit while contending with United States tariffs, a Middle East Supply crisis and currency hedge losses? Ansell's (ASX:ANN) FY26 results, released on 24 August 2026 for the year ended 30 June 2026, give a direct answer: through pricing, sourcing changes and productivity savings, supported by a more encouraging Healthcare division. Adjusted EBIT rose to US$321.9 million from US$282.1 million, and the company guided to higher Earnings Per Share for FY27. All figures below are in US dollars unless stated.

The central development: earnings growth and a higher guide

Ansell reported FY26 sales of US$2,140.2 million, up from US$2,003.3 million, an increase of 6.8 per cent as reported and 5.0 per cent on an organic constant-currency basis. Adjusted EBIT Margin improved to 15.0 per cent from 14.1 per cent. Adjusted net profit after tax was US$212.3 million, and adjusted earnings per share were US148.6 cents, compared with US126.1 cents in FY25.

Statutory figures were more encouraging still, with EBIT of US$320.5 million against US$183.9 million, because the prior year carried larger significant items. Operating Cash Flow was US$270.1 million, compared with US$105.4 million, and cash conversion was 113 per cent. For FY27, the company guided to adjusted EPS of US158 cents to US170 cents, which is a range above the FY26 figure and which, like all guidance, is the company's expectation rather than a certainty.

How Ansell makes money

Ansell has two segments. Healthcare, which sells surgical and examination gloves and related products, had sales of US$1,192.9 million and adjusted EBIT of US$170.7 million, up 20.3 per cent. Industrial, which sells hand protection and safety products for workplaces, had sales of US$947.3 million and adjusted EBIT of US$170.6 million, up 9.7 per cent. Healthcare accounted for 56 per cent of segment sales and Industrial for 44 per cent, but the two contributed almost equal EBIT.

Revenue depends on volumes in hospitals and industry, product mix, raw material and freight costs, and the ability to pass those costs on. Because production is largely in Asia and sales are global, currency and trade policy have a direct effect.

Tariffs, the Middle East and currency

Ansell said higher US tariffs were offset by sourcing actions and price increases. About US$12 million of tariff refunds was received in July 2026, and the timing of the remainder is uncertain. The company said it is ready to adjust prices again if tariff rates change.

In the second half of FY26, a Middle East crisis created supply constraints and higher costs, which Ansell offset through supply chain resilience, price increases and Balance Sheet strength. It continues to assess the effect and may raise prices further. Currency was a small drag: foreign exchange added US$46.6 million to sales and US$8.6 million to EBIT before hedges, but hedge contract losses of US$13.8 million left a net unfavourable EBIT effect of US$4.3 million. For FY27, the company expects a benefit of about US$9 million from lower hedge losses.

Balance sheet and Capital returns

Net debt to adjusted EBITDA was 1.3 times at 30 June 2026, with net debt reduced by US$52.3 million. Liquidity was US$752 million in cash and undrawn bank facilities. Ansell completed US$118.4 million of share buy-backs in FY26 and the US$200 million on-market program continues into FY27.

The final Dividend was US41.5 cents per share and the full-year dividend US68.1 cents, up from US50.2 cents. That represents a 45 per cent payout of adjusted NPAT, within a stated policy range of 40 to 50 per cent. The dividend is unfranked, so Australian holders do not receive franking credits, and amounts are declared in US dollars, so the Australian-dollar value moves with the exchange rate.

Productivity program and FY27 assumptions

The company said it had achieved its recurring pre-tax savings target of US$50 million under the productivity program known as APIP. One-off cash costs are expected to total US$85 million to US$90 million, with US$69 million incurred so far, including US$11 million in FY26. Other FY27 guidance assumptions include net interest cost of about US$43 million, a tax rate of 23.5 to 24.5 per cent, Capital Expenditure of US$45 million to US$55 million and significant items of about US$15 million before tax, mainly for an enterprise resource planning (ERP) system implementation starting in North America.

Sector and competitive position

Ansell competes in healthcare and industrial glove markets against large Asian manufacturers and other protective equipment suppliers. Its position rests on brand, product technology and distribution rather than low price alone, and the results suggest that pricing power has so far been sufficient to cover cost increases.

Risks and what to monitor

The company's documents identify US tariff changes and the timing of refunds, the Middle East crisis and cost inflation, uncertain macroeconomic conditions, hedge losses, significant items including Shareholder class action legal costs and the ERP implementation. The ERP rollout is a genuine execution risk, as it touches order processing and finance in a large market.

Investors should also watch Healthcare margin trends, because that segment drove most of the profit improvement in FY26 and the guidance rests on it.