Brambles FY25 earnings: Cash flow surges, new buy-back announced

Brambles announced solid FY25 earnings and a new share buy-back, with strong results in cash flow and profitability.

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The Brambles Ltd (ASX: BXB) share price is in focus after the company reported a 3% lift in sales revenue to US$6,669.7 million and a 14% jump in basic EPS (continuing operations) for the full year ended 30 June 2025.

What did Brambles report?

  • Sales revenue: US$6,669.7 million, up 3% (constant FX)
  • Underlying Profit & Operating profit: US$1,371.8 million, up 10% (constant FX)
  • Operating profit after tax: US$864.2 million, up 13% (constant FX)
  • Basic EPS (continuing operations): US 62.5¢, up 14% (constant FX)
  • Free Cash Flow before dividends: US$1,094.9 million, up US$212.1 million
  • Total FY25 dividends: US 39.83¢ per share, up 17%

What else happened in FY25?

Brambles' transformation program supported improved customer experience, digital initiatives, and increased asset efficiency. Significant progress was made on the company's Serialisation+ smart asset tracking technology, particularly in Chile and pilot programs in North America and the UK.

The company completed a US$403 million on-market share buy-back during FY25 and has announced a new buy-back of up to US$400 million in FY26, reflecting its strong balance sheet and cash flow generation. Operationally, Brambles managed increased repair and storage costs in the US due to higher plant stock levels and navigated ongoing macroeconomic uncertainty.

What did Brambles management say?

Commenting on the result, CEO, Graham Chipchase, said:

Our FY25 performance delivered another year of successful financial, operational and sustainability outcomes at the same time as strengthening our customer value proposition. Achieving these results amid heightened macroeconomic uncertainty underscores the increased resilience of our business, reinforced through our multi-year transformation programme that has strengthened all facets of our business.

What's next for Brambles?

For FY26, Brambles expects sales revenue growth of 3–5% and Underlying Profit growth of 8–11% at constant FX. Free Cash Flow before dividends is forecast between US$850 million and US$950 million. The company will continue to invest in transformation, digital solutions, and capital management. Brambles is also set to discontinue quarterly sales updates in favour of half- and full-year reporting.

Management expects ongoing benefits from its transformation program and digital initiatives while monitoring global economic conditions and input costs, with new customer contract wins expected to support volume growth in key regions.

Brambles share price snapshot

Over the past 12 months, the Brambles shares have outperformed the market, rising 36% compared to a 11% increase for the S&P/ASX 200 Index (ASX: XJO).

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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