Brambles Ltd (ASX:BXB), a Supply chain logistics company known for its CHEP pallet pooling business, has recorded a decline in its share price over the past year. Brambles Ltd (ASX:BXB) shares were priced at $19.22, down 0.05% in today’s session, and are down 22.66% over the past year. The company released its FY26 results for the year ended 30 June 2026 on 20 August 2026, with the release authorised by a Special Committee of the Board.

Business Model and Operational Footprint

Brambles owns and rents pallets and containers that are shared among customers in supply chains, earning pooling Revenue from retailers, manufacturers and growers. The Business reports in US dollars and operates pallet pooling networks across regions including the United States and Europe, and in Latin America such as Chile.

In FY26, the group reported sales revenue of US$7,042.9 million from continuing operations, with pooling Capital Expenditure at 12.9% of sales. It holds excess pallets in the US, having used 0.6 million in FY26, and expects to progressively use the remaining 3.4 million by the end of FY28. A rollout of its Effortless Service Offer in Chile is described as strengthening confidence in its Serialisation+ technology.

Sector Dynamics

Pallet pooling Demand follows consumer goods volumes, while Earnings are influenced by pricing, inflation, repair capacity and the cost of lumber and labour. Brambles notes weaker consumer demand that lowered like-for-like volumes across the group, offset by net new business growth of 3% driven by the US and European pallet businesses.

Brambles’ 22.66% one-year decline compares with a 3.06% fall for Amcor Plc (ASX:AMC) and a 4.70% fall for Auckland International Airport Ltd (ASX:AIA). Brambles is down 0.05% today at $19.22.

Among the 20 ASX-listed companies in this group of results, Brambles Ltd’s one-year change of down 22.66% ranks 15 of 20, where 1 is the strongest performer over the period.

FY26 Results Release

Sales revenue rose 6% at actual exchange rates, or 2% in constant currency, with equal contributions from price realisation and Volume growth. Underlying Profit and operating profit were US$1,494.4 million, up 9% (4% in constant currency). The release attributes a roughly US$90 million adverse earnings impact to US repair capacity constraints, and says that excluding this impact underlying profit rose about 11% in constant currency. Operating profit after tax was US$948.5 million, and basic EPS from continuing operations was 69.9 cents, up 12% (6% in constant currency).

Return on capital invested was 22.6%. 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. The final Dividend is 23.15 US cents per share, bringing total dividends to 46.15 US cents, up 16%, with a 64% payout ratio. The company completed US$509 million of on-market buy-backs in FY26 and has a current buy-back of up to US$400 million, with US$109 million purchased in FY26, expected to be completed in FY27.

For FY27 the company expects sales revenue growth of 2% to 4% at constant exchange rates, underlying profit growth of 2% to 6% and free cash flow before dividends of US$800 million to US$950 million. Underlying profit growth is expected to be weighted to the second half, with a mid-to-high single digit decline in the first half more than offset by low double-digit growth in the second half. The company expects to resolve US repair capacity constraints by the end of 1H27.

The company describes the result as resilient and notes that Return on Capital Invested of 22.6% rose 0.4 percentage points in constant currency as profit growth outpaced higher average capital invested. Profit after tax including discontinued operations was US$954.0 million, and total value creation of 9% comprised EPS growth of 6% and a Dividend Yield of 3%.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include net new business wins, price realisation, productivity improvements, resolution of US repair constraints, the use of excess pallets and the Serialisation+ rollout.

Operating risks include the US repair constraints that cost about US$90 million, weaker consumer demand, an expected decline in underlying profit in the first half of FY27, FY27 free cash flow guidance of US$800 million to US$950 million, which is below US$1,048.2 million in FY26, and increased Investment in supply chain, digital and IT initiatives. Underlying profit growth of 2% to 6% depends on second-half delivery, and guidance relates to constant exchange rates.

Where Things Stand

Brambles reports higher profit and a larger dividend with over US$1 billion of free cash flow, while its shares remain well below levels of a year ago. Reference points ahead include first-half FY27 results and the resolution of US repair capacity constraints.