Wesfarmers Limited (ASX:WES), a constituent of the S&P/ASX 200 and one of Australia's most diversified retail and industrial conglomerates, released its FY26 full-year results on 27 August 2026, reporting statutory NPAT of $2,874 million. Excluding significant items in the prior period, NPAT grew 8.3%, driven by strong Earnings contributions from Bunnings Group, Kmart Group, and WesCEF. Revenue increased 3.4% to $47.3 billion, and a fully franked final Dividend of $1.20 per share was declared, bringing full-year Ordinary Dividends to $2.22 per share.

About the Company

Wesfarmers Limited is one of Australia's largest conglomerates, operating Australia's number one home improvement and hardware retailer (Bunnings Group), general merchandise retail (Kmart Group: Kmart and Target), chemicals, energy and fertilisers (WesCEF, including the Mt Holland spodumene and lithium hydroxide business), health and pharmacy (Wesfarmers Health, including Priceline Pharmacy), and office supplies (Officeworks). The Group's shared data asset, OnePass loyalty program, and retail media network provide a growing digital infrastructure layer across its retail businesses.

FY26 Results

Revenue was $47,274 million (FY25: $45,700 million), up 3.4%. EBIT excluding significant items was $4,493 million (FY25: $4,186 million), up 7.3%. NPAT excluding significant items was $2,874 million (FY25: $2,653 million), up 8.3%. Basic EPS excluding significant items was 253.4 cents. Operating cash flows were $4,272 million (FY25: $4,568 million), down 6.5%, reflecting deliberate inventory investments in WesCEF and Health in response to Supply chain disruptions from the Middle East conflict. Bunnings delivered solid trading performance reflecting strong value credentials and resilience across market conditions, with earnings growth supported by Operating Leverage and range renewal. Kmart Group's higher earnings were supported by the strong value proposition of Anko products and operational efficiency. WesCEF earnings were affected by the timing of higher ammonia prices due to the Middle East conflict; spodumene concentrate production of 209kt was above both guidance and nameplate capacity; the lithium hydroxide refinery ramp-up was affected by intermittent odour issues. Officeworks earnings reflected one-off transformation program costs in FY26. Wesfarmers Health delivered higher earnings as its multi-year transformation gained momentum. Blackwoods and Workwear Group transitioned to Bunnings Group on 1 July 2026. Bunnings, Kmart, and Officeworks launched agentic AI shopping assistants ('Buddy', 'Joy', 'Ollie') to enhance the online shopping experience. Group TRIFR improved to 9.1 from 9.5. In May 2026, a Capital management distribution of $1.50 per share was paid, totalling $1,703 million. Full-year ordinary dividends of $2.22 per share, fully franked, represent a 7.8% increase.

Distribution

Wesfarmers declared a fully franked final dividend of $1.20 per share, bringing total fully franked ordinary dividends for FY26 to $2.22 per share, up 7.8% on FY25. Additionally, a capital management distribution of $1.50 per share was paid in May 2026, totalling $1,703 million, as part of Wesfarmers' commitment to effective capital management.

Index Context

Wesfarmers is one of the largest companies in the S&P/ASX 200 by Market Capitalisation and is widely regarded as a high-quality industrial and retail conglomerate. For S&P/ASX 200 investors, WES provides exposure to Australian household spending through Bunnings and Kmart, the energy transition through WesCEF's lithium business, and the growing intersection of digital capability and physical retail through the OnePass platform and retail media network. The company's portfolio approach — with capital allocated across diverse businesses — allows it to sustain overall earnings growth even when individual segments face cyclical headwinds.

Material Risks and Uncertainties

WesCEF's lithium hydroxide refinery experienced intermittent odour issues during ramp-up that affected operational continuity and community relations, creating an ongoing risk to planned production volumes. The Middle East conflict elevated fertiliser input costs and led to precautionary inventory Investment in both WesCEF and Health, reducing FY26 operating cash flows by approximately $296 million relative to FY25. Officeworks' one-off transformation costs were flagged as a temporary drag, but successful execution of the low-cost operating model transition will be essential for restoring earnings growth in that business. Housing market conditions affect Bunnings' renovation and DIY revenue — any sustained slowdown in home building activity or consumer renovation spending would be a headwind for Australia's largest hardware retailer.

Upcoming Milestones

Resolution of the lithium hydroxide refinery odour issues and successful ramp-up of the Mt Holland refinery to nameplate capacity will be the most consequential near-term operational milestone for WesCEF's lithium business. The Officeworks transformation program, commenced in 1H FY26, is expected to drive long-term earnings growth by transitioning the Business to a lower cost operating model — FY27 results will show whether the transition costs are declining and earnings are recovering. Progress on OnePass membership growth and the retail media network's revenue scale will be increasingly important as Wesfarmers' digital commercial infrastructure matures. The transition of Blackwoods and Workwear Group into the Bunnings structure (effective 1 July 2026) will be assessed for synergies and integration in the FY27 interim result.