Key highlights

  • Brambles reported FY26 sales revenue of US$7,042.9 million, up 2% at constant currency, and Underlying Profit of US$1,494.4 million, up 4%.
  • Free cash flow before dividends was US$1,048.2 million, and a final dividend of 23.15 US cents per share was declared.
  • FY27 guidance includes Underlying Profit growth of 2–6%, with a mid-to-high single digit decline expected in 1H27.

On 21 October 2026, Brambles Ltd (ASX:BXB) finished the session at $20.58, up 0.44%. The S&P/ASX 200 Industrials [XNJ] ended at 8,113.90 (+0.99%, +79.50 points) and the S&P/ASX 200 [XJO] at 8,831.30 (+0.16%, +14.40 points) at 4:25 pm GMT+11. Brambles is a supply chain logistics company that provides pooled pallets, crates and containers through its CHEP brand.

What Brambles does

Brambles Limited runs a pooling model in which pallets, crates and containers are owned by the company, hired to customers and returned for reuse. Its CHEP business serves consumer goods, food and fresh produce supply chains across regions including North America and Europe. Results are reported in US dollars.

FY26 results

In an ASX and media release dated 20 August 2026, Brambles reported sales revenue from continuing operations of US$7,042.9 million, up 2% at constant currency (6% at actual rates), and Underlying Profit of US$1,494.4 million, up 4% (9% at actual rates). Profit after tax from continuing operations was US$948.5 million and basic EPS was US 69.9 cents, up 6% at constant currency. Return on Capital Invested was 22.6%.

Net new business growth was 3%, offset by lower like-for-like volumes tied to lower consumer demand. Underlying Profit was reduced by about US$90 million from US repair capacity constraints; excluding that, it rose about 11%. The company said it is on track to resolve the constraints by the end of 1H27.

Cash flow, dividends and buy-backs

Cash flow from operations was US$1,472.5 million, and free cash flow before dividends was US$1,048.2 million, down US$46.7 million as higher financing and tax payments outweighed operating cash flow. The final dividend is 23.15 US cents per share, taking FY26 dividends to 46.15 US cents, up 16%, with a payout ratio of 64%. Brambles completed US$509 million of on-market buy-backs in FY26 and has a current buy-back of up to US$400 million, of which US$109 million was purchased in FY26.

FY27 outlook

Brambles expects FY27 sales revenue growth of 2–4% at constant currency, Underlying Profit growth of 2–6% and free cash flow before dividends of US$800–950 million. It expects profit growth to be weighted to the second half, with a mid-to-high single digit decline in 1H27 offset by low double-digit growth in 2H27. It expects to use the remaining 3.4 million excess US pallets progressively by the end of FY28.

Sector context

Industrial companies span transport, infrastructure, engineering, services and manufacturing, and they are tracked through the S&P/ASX 200 Industrials index, which closed at 8,113.90, up 0.99%, on 21 October 2026 alongside a 0.16% rise in the S&P/ASX 200 to 8,831.30. Pallet pooling demand is linked to consumer goods volumes, and the release cites lower like-for-like volumes from lower consumer demand.

Risks and uncertainties

Free cash flow declined in FY26 and is guided lower in FY27, and the first half of FY27 is expected to show lower profit. US repair capacity constraints reduced earnings by about US$90 million and must still be resolved. Like-for-like volumes were lower, pallet purchases and supply chain investments add capital needs, and inflation, currency movements and consumer demand can affect results.

Catalysts to watch

Items to watch include resolution of US repair capacity constraints by the end of 1H27, 1H27 results, execution of the US$400 million buy-back and the Serialisation+ and Effortless Service rollout.

Wrapping up

Brambles’ 20 August 2026 release combined higher profit and dividends with lower free cash flow and a guided lower first half. The 1H27 result will show progress on repair capacity.