Elders Limited (ASX:ELD): Half-Year Earnings, Killara Sale Completion and CEO Transition

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Elders Limited (ASX:ELD): Half-Year Earnings, Killara Sale Completion and CEO Transition

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Highlights

Elders Limited (ASX:ELD) reported HY26 sales revenue of A$1,767.7 million, up 32%.
Underlying EBIT rose 33% to A$76.6 million, while underlying NPAT increased 13% to A$37.9 million.
The sale of Killara Feedlot to Australian Meat Group was completed on 30 June 2026.
René Dedoncker succeeded Mark Allison as CEO from 1 October 2026.

Elders Limited is a diversified agribusiness serving rural and regional Australia, with activities spanning livestock and wool agency services, farm supplies, crop protection products, rural financial services and real estate. The company has been through a period of change in 2026, with the integration of Delta Agribusiness, the completed sale of its feedlot and a new chief executive taking over at the start of the October quarter.

Company Business

Elders reports through five divisions under a divisional operating model introduced at the start of the 2026 financial year. Elders Rural Services covers agency, retail and financial services. Elders Crop Protection formulates, imports and sells own-brand agricultural chemicals and animal health products. AIRR is a wholesale buying group supplying more than 220 member stores. Delta Agribusiness provides farm advisory and agronomy services, and Elders Real Estate covers sales and property management through company and franchised agencies.

Elders (ASX:ELD) employs about 3,500 people across Australia. Livestock prices, crop input demand and seasonal conditions influence several divisions at once.

Recent Development

In May 2026, Elders (ASX:ELD) released results for the six months ended 31 March 2026. Sales revenue was A$1,767.7 million, up 32%, while gross margin increased 27% to A$396.6 million. The Delta Agribusiness acquisition, completed in November for total consideration of A$449.4 million, contributed A$348.0 million of sales and A$10.4 million of underlying EBIT over its first five months of ownership.

Elders agreed in February 2026 to divest Killara Feedlot to Australian Meat Group for about A$195.8 million. Foreign investment and competition approvals were obtained in May and June, and completion occurred on 30 June 2026. The company stated that proceeds would be used to reduce net debt.

Elders also refinanced A$465.0 million of syndicated bank facilities in May 2026, with the primary facility maturing in November 2029. René Dedoncker was named as successor to Mark Allison as CEO, effective 1 October 2026.

Financial Performance and Sector Context

Underlying EBIT rose 33% to A$76.6 million and underlying profit after tax increased 13% to A$37.9 million. Underlying earnings per share were 18.1 cents, compared with 18.8 cents in the prior corresponding period. The interim dividend was 18.0 cents per share, fully franked, unchanged in amount from the prior corresponding period, which was 50% franked.

Divisional underlying EBIT was A$71.9 million for Elders Rural Services, A$24.1 million for Elders Real Estate, A$22.3 million for Crop Protection and A$19.4 million for AIRR. Corporate costs were A$59.4 million, reflecting technology expenses linked to the Systems Modernisation program and dual platforms until a legacy system is retired in 2027.

Operating cash flow was A$67.0 million, up 115%, with cash conversion of 176.6%. Underlying return on capital was 10.7%, compared with 12.6% in the prior corresponding period, and the leverage ratio was 3.8 times, which the company described as temporarily elevated after the Delta acquisition. Elders targeted a return to leverage below 2.0 times in the 2026 financial year.

For sector context, the company pointed to livestock prices as a driver of Rural Services earnings, seasonal improvements ahead of the winter crop and elevated diesel prices that have eased from March highs.

Risks to Consider

Elders (ASX:ELD) is exposed to weather and seasonal conditions, agricultural commodity and livestock prices, and the demand for farm inputs. Leverage remained above target at the half-year balance date, and the benefit of lower debt depends on the sale proceeds and Delta earnings flowing through. Fuel and freight costs, wage growth and the cost of running legacy and new systems together can affect margins. The Delta integration also carries execution risk, with an A$8 million synergy target in the 2026 financial year within a A$12 million three-year program.

What to Watch Next

The financial year ends on 30 September, so full-year results for the 2026 financial year are the next major reporting milestone, showing the effect of Delta's full-year contribution and the Killara proceeds on leverage. Other monitoring points include the first period under the new CEO, Systems Modernisation progress and Delta synergy delivery.

Key Insights

Elders (ASX:ELD) combined higher sales and underlying earnings in the first half with a larger and more leveraged balance sheet after the Delta acquisition. The Killara sale is complete, refinancing has extended the main facility to November 2029 and leadership passed to a new chief executive in October. Key factors to monitor include leverage, return on capital, cost control during the systems transition, livestock and seasonal conditions, and the full-year result.

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