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.
Brambles Reaffirms FY27 Growth Outlook Amid Strong Cash Flow and US Network Recovery
Highlights
Brambles Shares Rise Following 2026 AGM Announcement
Brambles Limited (ASX: BXB) released its Annual General Meeting (AGM) addresses on 22 October 2026, outlining financial performance, operational improvements and growth expectations. The company's shares traded at a current market price (CMP) of AU$21.330, reflecting a surge of approximately 3.644%. Management reaffirmed its FY27 financial guidance while highlighting initiatives to strengthen its US pallet network and improve operational efficiency.
FY26 Financial Performance Demonstrates Resilience
Brambles reported a 2% increase in FY26 sales revenue on a constant currency basis, supported by 3% growth from new business wins. Brambles recorded a 4% rise in underlying profit, even after absorbing a US$90 million financial setback resulting from pallet repair capacity challenges across its US operations.
Excluding these disruptions, underlying profit growth reached 11%. Brambles generated more than US$1 billion in free cash flow before dividend payments for the second year running, alongside a 16% rise in total dividends to 46.15 US cents per share. Brambles achieved a return on capital invested of 22.6%, highlighting improvements in capital utilisation and investment efficiency.
US Network Recovery and Strategic Investments
Brambles is working to resolve pallet repair challenges in its US business by expanding repair facilities and improving operational efficiency. The company purchased 1.3 million additional pallets during Q4 FY26 and another 1.4 million during Q1 FY27 to improve availability.
Management plans to expand US repair capacity by approximately 20% across FY27 and FY28, alongside establishing additional service centres.
Meanwhile, its Serialisation+ initiative contributed to 15 new business wins in Chile during FY26, supporting improved supply chain visibility and customer engagement.
FY27 Outlook and Growth Expectations
Brambles maintained its FY27 revenue growth forecast of 2–4% and underlying profit growth guidance of 2–6%, both on a constant currency basis. Brambles reaffirmed its FY27 guidance, projecting free cash flow of US$800 million to US$950 million before dividend payments to shareholders. Management also reaffirmed its FY28 objective of expanding underlying profit margins by at least three percentage points compared with FY24.
Continued network investment, improving service reliability and disciplined capital allocation could support earnings resilience, although US operational recovery and softer consumer demand remain important considerations.
Note- All data presented is based on information available at the time of writing.
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