Wesfarmers Ltd (ASX: WES) shares are marching higher today.
Shares in the diversified S&P/ASX 200 Index (ASX: XJO) retailer – whose subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $91.68. In morning trade on Thursday, shares are swapping hands for $92.99 apiece, up 1.5%.
For some context, the ASX 200 is just about flat at this same time.
This outperformance follows the release of Wesfarmers full year financial results (FY 2025).
Here are the highlights.
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Wesfarmers shares lift on earnings and dividend growth
Investors are bidding up Wesfarmers shares today after the company reported revenue of $45.7 billion for the 12 months, up 3.4% from FY 2024.
Statutory earnings before interest and tax (EBIT) of $4.47 billion was up 11.9%, while underlying EBIT of $4.19 billion was up 4.9%.
The company saw its operating cash flows reduce by 0.6% year-on-year to $4.57 billion, but profits were still on the rise.
On the bottom line, Wesfarmers reported an FY 2025 statutory net profit after tax (NPAT) of $2.93 billion, up 14.4% year-on-year. Underlying NPAT (which excludes certain significant items) increased 3.8% to $2.65 billion.
With profits up, the board declared a fully franked final dividend of $1.11 per Wesfarmers share, up 3.7% from last year's final payout.
Atop the final Wesfarmers dividend, the board said it has recommended a "capital management initiative" that would see shareholders receive a distribution of $1.50 per share.
According to the release:
The form of the distribution is subject to a final ruling from the Australian Taxation Office (ATO) but is expected to comprise a capital component of $1.10 per share and a fully franked special dividend component of $0.40 per share.
This also remains subject to shareholder approval at the company's upcoming 30 October AGM.
What did management say?
Commenting on the results helping support Wesfarmers shares today, managing director Rob Scott said, "The group's largest divisions continued to perform well, with Bunnings and Kmart group's everyday low prices and market-leading offers driving sales and earnings growth."
Scott added:
The retail divisions also benefited from new and expanded ranges and offerings that helped grow their addressable markets.
Bunnings' solid trading performance reflects the strength and resilience of its offer and disciplined execution of its strategic agenda. Kmart Group's higher earnings were supported by its strong value credentials and focus on productivity and cost control. Officeworks increased sales and earnings, as it continues to transform its technology offer and service model.
As for Wesfarmers Chemicals, Energy & Fertilisers division (WesCEF), Scott said:
WesCEF's earnings were impacted by lower global commodity prices, but operational performance remained strong. During the year, construction of the Kwinana lithium hydroxide refinery was completed, and a key milestone was reached in July 2025 when first product at the refinery was achieved.
What's next for Wesfarmers shares?
Looking to what could impact Wesfarmers shares in the year ahead, the company said that its retail divisions "traded well" in the first eight weeks of FY 2026. Bunnings' sales growth was stronger compared to the second half FY 2025, with sales growth at Kmart and Office Works broadly in line with H2 FY 2025.
Management expects another year of higher costs, noting, "Domestic cost pressures are expected to persist in the 2026 financial year, driven by labour, energy and supply chain costs."
Wesfarmers forecast FY 2026 net capital expenditure of between $1.00 billion and $1.30 billion.
"Wesfarmers remains well positioned to deliver satisfactory returns to shareholders over the long term," Scott concluded.
With today's intraday boost factored in, Wesfarmers shares are up 20.3% since this time last year, not including dividends.
