Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Ansell Holds Earnings Outlook as Stronger Margins Set Up Its Next Test
Highlights
Ansell Reaffirms Its Earnings Path
Ansell Limited (ASX: ANN) traded at a CMP of AU$45.870, representing a gain of approximately 0.46%, alongside its annual general meeting update dated 9 November 2026. The protective equipment manufacturer maintained its earnings outlook, with US demand supporting early trading momentum. The next test is whether productivity improvements can sustain margins while input costs remain elevated.
Sales Growth Lifts Profitability
According to the announcement, FY26 sales reached US$2,140.2 million, increasing 6.8%, while organic constant currency growth was 5.0%. Adjusted sales growth, which removes temporary ordering effects, reached 5.7%, accelerating to 9.2% during the second half. US and Cleanroom sales each increased 10% on this adjusted basis.
Adjusted earnings before interest and tax totalled US$321.9 million, rising 14.1%, or 14.9% organically at constant currency. The adjusted operating margin reached 15.0%, improving 90 basis points on a reported basis.
Adjusted earnings per share increased 17.8% to US148.6 cents, while statutory earnings per share rose 108.9% to US146.0 cents. The annual dividend climbed 35.7% to US68.1 cents, with a reported payout ratio of 45%.
Cash Generation Strengthens Flexibility
Cash conversion improved to 113%, compared to 91% in FY25. Operating cash flow funded approximately US$118 million in share buybacks, while net debt stood at 1.3 times adjusted EBITDA.
The Accelerated Productivity Investment Program delivered its US$50 million recurring savings target. Ansell is now targeting further simplification across products, brands and supply chains. Management also plans to deepen customer relationships and direct commercial investment towards attractive growth markets.
Outlook: Momentum Meets Cost Pressure
FY27 adjusted earnings guidance remains US158–170 cents per share, before significant items and excluding buyback effects. Capital expenditure is forecast at US$45–55 million, prioritising faster-growing businesses.
Early trading showed good constant currency sales growth and improving margins. North America’s upgraded enterprise system commenced operations in October. However, elevated input costs, macroeconomic uncertainty and a moderately stronger US dollar remain considerations as management pursues profitable growth.
Note- All data presented is based on information available at the time of writing.
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