Highlights

  • Wesfarmers (ASX:WES) reported FY26 statutory NPAT of $2,874 million, with underlying NPAT increasing 8.3% compared with the prior year excluding significant items.
  • Bunnings, Kmart Group and WesCEF were key contributors to Earnings growth during the year.
  • The company declared a fully franked final Dividend of $1.20 per share, taking full-year Ordinary Dividends to $2.22 per share.
  • Wesfarmers continued investing across retail, digital platforms and the Mt Holland lithium project to support future growth.

Wesfarmers (ASX:WES) delivered its FY26 full-year results on 27 August 2026, highlighting the resilience of its diversified Business portfolio despite ongoing cost pressures and changing consumer conditions. The company reported higher underlying earnings, supported by strong contributions from Bunnings Group, Kmart Group and Wesfarmers Chemicals, Energy & Fertilisers (WesCEF).

The result also reflected continued Investment in digital capabilities, productivity initiatives and growth platforms, while lithium remained an important long-term opportunity within the group’s broader portfolio.

FY26 Results

For the full year ended 30 June 2026, Wesfarmers reported statutory net profit after tax (NPAT) of $2,874 million. Excluding significant items recorded in the prior year, NPAT increased 8.3%.

Revenue increased 3.4% to $47,274 million, while earnings before interest and tax (EBIT), excluding significant items, increased 7.3% to $4,493 million.

The company noted that no significant items were recorded in FY26, compared with FY25, when results included impacts from the sale of Coregas, the wind-up of the BPI property structure and costs associated with the transition of Catch.

Managing Director Rob Scott said the result reflected continued execution across the group’s businesses, with retail divisions focusing on customer value, productivity and operational efficiency.

Divisional Performance

Bunnings remained Wesfarmers’ largest earnings contributor, delivering Revenue of $20,399 million, up 4.1%, while earnings before tax increased 5.1% to $2,455 million.

The division benefited from continued Demand across consumer and commercial customers, supported by its pricing strategy, expanded product ranges and investment in digital capabilities. Digital sales increased to 7.6% of total sales, compared with 6.5% in the prior year.

Kmart Group also delivered earnings growth, with revenue increasing 2.8% to $11,751 million and earnings before tax rising 6.0% to $1,109 million. The division continued benefiting from its value-focused product strategy, Anko Brand performance and improved operational efficiency.

WesCEF recorded a stronger year, with earnings before tax increasing 18.5% to $473 million. The result was supported by improved lithium performance and higher prices across parts of its portfolio, although ammonia timing impacts and market conditions affected some areas of the business.

Officeworks experienced a more challenging year, with earnings before tax declining 22.2% to $165 million. The result reflected transformation costs, strategic clearance activity and investments aimed at creating a lower-cost operating model.

Wesfarmers Health continued its improvement trajectory, with revenue increasing 9.1% to $6,474 million and earnings before tax rising 18.8% to $76 million. The division benefited from growth in Priceline Pharmacy, consumer health services and operational improvements.

Lithium Strategy

Lithium remains an important growth opportunity for Wesfarmers through its 50% interest in Covalent Lithium, its joint venture with Sociedad Química y Minera de Chile.

During FY26, WesCEF’s share of spodumene concentrate production reached 209kt, above guidance and nameplate capacity. Lithium earnings improved significantly, with the business reporting a $40 million contribution compared with a loss in the prior year.

The Kwinana lithium hydroxide refinery achieved first product and sales during FY26, although ramp-up progress was affected by intermittent odour issues. Additional mitigation measures commenced during the financial year, with production rates expected to improve through FY27.

Wesfarmers and its joint venture partner also progressed expansion plans at Mt Holland, with the expansion expected to increase spodumene concentrate production capacity over time.

Capital Management

Wesfarmers maintained its focus on Shareholder returns and Balance Sheet flexibility. The company declared a fully franked final dividend of $1.20 per share, taking total ordinary dividends for FY26 to $2.22 per share, an increase of 7.8%.

The final dividend Record Date is 2 September 2026, with payment scheduled for 7 October 2026.

The company reported operating cash flows of $4,272 million, while free cash flow increased 15.8% to $3,992 million. Net financial Debt increased to $5,295 million, reflecting shareholder distributions and continued investment across the group.

Wesfarmers maintained balance sheet flexibility, with debt levels remaining within its targeted financial framework.

Growth Drivers

Wesfarmers continues to focus on Long-term Growth through retail expansion, digital investment and productivity improvements.

The group expanded its use of artificial intelligence and digital tools across Bunnings, Kmart and Officeworks to improve customer experience, Supply chain efficiency and operational decision-making.

Customer loyalty platforms, retail media capabilities and omnichannel investments are also becoming increasingly important growth drivers.

The transition of Industrial and Safety businesses, including Blackwoods and Workwear Group, into Bunnings Group from 1 July 2026 is expected to strengthen commercial customer capabilities and create further opportunities.

Investor Focus

Key areas investors will monitor following the FY26 results include:

  • FY27 trading conditions across Bunnings, Kmart and Officeworks as consumer spending patterns evolve.
  • Progress on lithium refinery ramp-up and qualification activities.
  • The impact of ongoing labour, energy and supply-chain cost pressures.
  • Further benefits from productivity programs, AI adoption and digital investments.
  • Capital allocation decisions as Wesfarmers continues investing across growth opportunities.

Risks

Wesfarmers continues to operate in an environment affected by consumer uncertainty, inflationary pressures and changing economic conditions.

Retail earnings could face pressure if household spending weakens, particularly across discretionary categories. Commodity-linked earnings within WesCEF remain exposed to global pricing movements and market volatility.

The lithium business also carries execution and market risks as the company continues progressing refinery operations and expansion plans.

Higher Capital expenditure and increased investment across growth initiatives may also influence near-term financial flexibility.

Outlook

Wesfarmers enters FY27 with a diversified portfolio supported by strong retail businesses, improving health operations and long-term opportunities in lithium and digital platforms.

Management expects retail divisions to remain focused on value, productivity and customer experience, while higher operating costs are expected to remain a consideration.

The company plans to continue investing in technology, new stores, supply chain capabilities and growth projects, with FY27 net Capital Expenditure expected between $1,300 million and $1,500 million.

Overall, the FY26 results demonstrate continued earnings progress across key divisions, while future performance will depend on maintaining retail momentum, improving operational efficiency and successfully executing longer-term growth initiatives.