Highlights

  • FY26 total system sales Revenue was A$9.64 billion across Australian franchisees and overseas company-operated stores.
  • Reported profit before tax was A$790.29 million, while profit before tax excluding specified accounting and one-off items was A$654.69 million.
  • Overseas company-operated retail profit before tax reached A$135.72 million during FY26.
  • The group declared fully franked dividends of 27.5 cents per share for FY26, including a 13.0-cent final dividend.

Harvey Norman Holdings Limited operates an integrated retail, franchise, property and digital system across multiple countries. In Australia, independent franchisees trade under the Harvey Norman, Domayne and Joyce Mayne brands, while overseas stores are company-operated. Harvey Norman (ASX:HVN) also owns a substantial property portfolio, making its Earnings mix broader than that of a conventional retailer. The FY26 result highlights how these operating segments combined during the year ended 30 June 2026.

FY26 Earnings Across a Diversified Model

Harvey Norman (ASX:HVN) reported total system sales revenue of A$9.64 billion in FY26. This comprised A$6.58 billion of aggregated Australian Franchisee sales and A$3.05 billion of overseas company-operated sales. Consolidated EBITDA was A$1.18 billion, while reported profit before tax was A$790.29 million. Profit after tax and non-controlling interests was A$528.46 million, and Basic Earnings Per Share was 42.41 cents.

Underlying Profit and Accounting Effects

The group also reported profit before tax of A$654.69 million after excluding the net impact of AASB 16, net property revaluations and the FY26 pecuniary penalty. The gap between this measure and reported profit illustrates the influence of Lease accounting, property values and one-off items on statutory earnings. For Harvey Norman (ASX:HVN), this distinction is relevant because property ownership forms a material part of the Business model rather than sitting outside the operating structure.

Overseas Retail and Australian Franchising

Overseas company-operated retail contributed A$135.72 million of profit before tax in FY26. The group operates stores in New Zealand, Singapore, Malaysia, Ireland, the United Kingdom, Slovenia and Croatia. In Australia, the franchising model generates fees, rent, outgoings and other income from independent franchisees. Harvey Norman (ASX:HVN) therefore combines direct retail exposure overseas with a franchise-led model domestically, creating different revenue and cost profiles across regions.

Property, Balance Sheet and Dividends

The group ended FY26 with total Assets of A$8.85 billion and net assets of A$4.94 billion. Its property portfolio remains central to the operating model because owned complexes support franchise activities and generate rental income. Net debt-to-equity was 18.81% at year end. Harvey Norman (ASX:HVN) declared total fully franked dividends of 27.5 cents per share for FY26, comprising an Interim Dividend of 14.5 cents and a final dividend of 13.0 cents.

Key Insights

The FY26 result shows a business with several earnings sources rather than a single retail channel. Australian franchising, overseas company-operated stores and property assets each contribute to group performance. The overseas division added to FY26 earnings, while the property base continued to influence both reported profit and the balance sheet. Future performance will depend on consumer demand, overseas execution, property values, cost control and the returns generated from ongoing Investment across the network.