"" Brambles Posts Resilient H2 2026 Results
Brambles Limited delivered a resilient full-year FY 2026 result, with sales revenue up 2% and underlying profit up 4%, despite a difficult fourth quarter in its U.S. business. The company's pooled-pallet business benefited from new customer wins and pricing gains, but like-for-like volumes fell 2% as consumer demand stayed subdued in several regions.
Strong Regional Performance
The company's regional businesses delivered solid performances, with CHEP Americas revenue rising 2%, CHEP EMEA revenue rising 2%, and CHEP Asia-Pacific revenue rising 3%. Demand remained soft in many markets, but tight supply of quality whitewood pallets and growing automation in customer networks continued to support the pooled-pallet model.
U.S. Repair-Capacity Issue Impacts Earnings
However, the company's U.S. business was impacted by a repair-capacity issue, which cut into earnings by $90 million. The problem was caused by labor shortages, subcontractor turnover, and higher-than-expected demand in the fourth quarter. Despite this, management said the company's full-year performance was solid, with underlying profit rising 4% and free cash flow exceeding $1 billion for a second straight year.
Outlook Remains Positive
The company's forecast for FY 2027 is cautious, with sales revenue expected to grow 2% to 4%, and underlying profit forecast to rise 2% to 6%. However, management said the U.S. problem is expected to create a $35 million to $55 million adverse year-on-year impact in FY 2027. The company plans to increase repair capacity by about 20% versus the FY 2026 base and add eight new service centers.
CEO Comments
Chief Executive Graham Chipchase said, "We delivered a resilient financial result while advancing the customer operational and sustainability initiatives that strengthen our long-term competitive advantage." He also said, "Underlying profit increased 4%, including a $90 million adverse impact associated with U.S. repair capacity constraints. Excluding the U.S. repair capacity impact, underlying profit increased 11%."
Categories: bitcoin, markets Tags: brambles, chep, us repair capacity, sustainability image_prompt: bold graphic of a pallet with a repair tool, highlighting the company's focus on customer operational and sustainability initiatives.
