Key Highlights

• For the six months to 31 March 2026, underlying sales Revenue was $1,767.7 million, up 32%.

• Revenue growth of 32% and EBIT growth of 33% in a single half came alongside a lower return on capital, which means much of the growth reflects a larger Business rather than higher productivity per dollar invested.

• Underlying EBIT was $76.6 million, up 33%, and statutory net profit after tax was $39.5 million, up 17%.

• The Interim Dividend was held at 18 cents per share, fully franked.

What should investors watch when Elders Limited (ASX:ELD) reports its FY26 result? The central questions are whether the second-half Earnings lift that management flagged in May 2026 has arrived, and whether the Killara Feedlot sale proceeds have reduced net Debt and interest costs.

The half-year result

For the six months to 31 March 2026, underlying sales revenue was $1,767.7 million, up 32%. Underlying EBIT was $76.6 million, up 33%, and statutory net profit after tax was $39.5 million, up 17%. Operating Cash Flow was $67.0 million, up 115%.

Underlying return on Capital fell to 10.7% from 12.6%. That is a notable detail: earnings grew, but the capital base grew faster, which is typical after an acquisition. The interim dividend was held at 18 cents per share, fully franked.

Delta Ag and the divisional model

Elders acquired Delta Agribusiness (Delta Ag), and the half-year summary said synergy benefits were progressing well, with most gains expected in the latter half of FY26 and beyond. The summary gave no financial figures for the synergies.

Integration is the principal source of uncertainty. Synergies are expected rather than delivered, so the full-year result should show whether they are visible in margins and in the return on capital.

Killara Feedlot sale

Elders announced the sale of the Killara Feedlot, classified as a discontinued operation, so its results are excluded from underlying earnings in both the current and prior periods. Management expected more encouraging second-half metrics driven by Delta Ag earnings and sale proceeds, which should help reduce net debt and interest expense. Investors should check whether the proceeds have been received and how they were applied.

Business drivers

Elders is an agribusiness services company. Revenue therefore tracks seasonal conditions, Commodity prices and farm profitability.

The summary flagged elevated diesel prices and fertiliser Supply disruptions as industry challenges. Input costs can compress margins if they cannot be passed on, and supply disruption can delay sales.

Sector and competitive position

Elders competes with other rural merchandise, livestock and real estate agents, and with specialist input suppliers. Larger scale, particularly after Delta Ag, can improve purchasing and distribution, but also raises the importance of Working Capital and Credit risk with farm customers.

Risks and what to monitor

Key risks include adverse seasonal conditions, falls in livestock or commodity prices, and input cost and supply issues, including diesel and fertiliser. Integration risk on Delta Ag could mean that synergies arrive later or are smaller than expected. Higher debt costs affect profit while net debt remains elevated. Working capital swings can affect operating cash flow, which doubled in the half. Finally, return on capital below recent levels reduces the benefit of growth.

Items to watch include the date and content of the full-year result, second-half underlying EBIT versus the first half, net debt after the Killara sale, return on capital, the final dividend, any commentary on the FY27 season and the annual general meeting.

How to interpret the half-year growth

Revenue growth of 32% and EBIT growth of 33% in a single half came alongside a lower return on capital, which means much of the growth reflects a larger business rather than higher productivity per dollar invested. A second point is that the Killara Feedlot is excluded from underlying figures, so comparisons with earlier reported numbers should use the restated base. Investors may therefore wish to compare like-for-like segment data when the full-year accounts are published.

Dividend and capital considerations

The unchanged interim dividend of 18 cents per share, fully franked, shows the board did not lift payouts despite higher profit, which is consistent with a priority on reducing debt after the Delta Ag deal and while Killara proceeds are awaited. The final dividend will indicate whether the board feels the Balance Sheet has improved enough to resume growth in distributions.

Limitations

No full-year FY26 figures were available as of 5 November 2026. Figures are as reported for the periods stated.