GrainCorp posts robust FY25 profit and maintains dividend

GrainCorp's FY25 result saw strong grain volumes, record oilseed crush, and a steady 48c dividend for shareholders.

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Key points

  • GrainCorp reported a 15% rise in underlying EBITDA to $308 million and maintained a fully franked 48 cent dividend, despite a decline in NPAT.
  • The company excelled in grain handling and oilseed crush output, though faced competitive pressures internationally and recognised an impairment in its Canadian operations.
  •  GrainCorp plans to enhance supply chain efficiencies and digital capabilities while navigating margin pressures, expecting growth benefits from ongoing business transformation by late FY26.

The GrainCorp Ltd (ASX: GNC) share price is in focus today after the agribusiness posted underlying EBITDA of $308 million and a fully franked 48 cent dividend for FY25.

What did GrainCorp report?

  • Underlying EBITDA: $308 million (up from $268 million in FY24)
  • Net Profit After Tax (NPAT): $40 million (down from $62 million in FY24)
  • Underlying NPAT: $87 million (up from $77 million in FY24)
  • Core cash position: $321 million (FY24: $337 million)
  • Total FY25 dividends: 48 cents per share, fully franked (unchanged from FY24)

What else do investors need to know?

GrainCorp's East Coast Australia (ECA) business handled 31.6 million tonnes of grain during FY25, thanks to a strong crop and clear execution, with both domestic and export volumes rising. The company's bulk materials program achieved record contribution, while oilseed crush output reached an all-time high of 557,000 tonnes.

The International business lifted sales thanks to higher Western Australian production, but margins were squeezed by strong global competition. Meanwhile, GrainsConnect Canada underperformed, leading to a $26 million non-cash impairment as GrainCorp continues its strategic review of the Canadian business.

What did GrainCorp management say?

Managing Director & CEO Robert Spurway said:

Disciplined planning and focused execution enabled GrainCorp to deliver a resilient FY25 result, as we responded effectively to a challenging global margin environment.

We've maintained a strong balance sheet, with core cash of $321 million, which gives us flexibility to continue pursuing growth opportunities while delivering strong shareholder returns.

We once again demonstrated our ability to generate strong results by controlling what we can and capitalising on opportunities when they arise.

What's next for GrainCorp?

Looking to FY26, GrainCorp expects ongoing margin pressure from abundant global supply of grains and oilseeds. However, early signs suggest the 2025–26 east coast harvest is off to a strong start, with 4.2 million tonnes already received.

Management is progressing investment in supply chain efficiency, digital capability, and the Clean Fuels Program. GrainCorp says benefits from its business transformation program should start flowing in late FY26, with further guidance to be provided at the February 2026 AGM.

GrainCorp share price snapshot

GrainCorp shares have declined 9% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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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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