The Elders Ltd (ASX: ELD) share price is in focus today as the agribusiness announced a 12% increase in underlying EBIT to $143.5 million for FY25, maintaining stable return on capital despite mixed seasonal conditions.
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What did Elders report?
- Sales revenue rose 2% to $3.20 billion
- Underlying EBIT increased 12% to $143.5 million
- Underlying net profit after tax climbed 34% to $86.0 million
- Final dividend maintained at 36 cents per share, fully franked
- Cash conversion improved to 137%, up from 129%
- Return on capital steady at 11.3%
What else do investors need to know?
Elders delivered growth across key business segments, with Agency and Real Estate Services offsetting softer retail conditions due to drought in South Australia and Victoria. Eight bolt-on acquisitions were completed during the year, and the strategic acquisition of Delta Agribusiness is expected to further strengthen geographic coverage and technical capabilities from November 2025.
The company's balance sheet remains solid, supported by a $178.7 million equity raise for Delta and significant headroom in banking covenants. Elders' focus on cost control saw operating costs kept below inflation, after adjusting for acquisitions and transformation programs.
What's next for Elders?
Elders expects to return to its target leverage ratio in FY26, supported by integration of Delta Agribusiness and ongoing working capital initiatives. Management is aiming for 5–10% EBIT and EPS growth through the cycle, supported by ongoing investment in systems modernisation, cost discipline, and portfolio diversification. The company highlights upside from further expansion in financial and real estate services, as well as industry-leading sustainability initiatives.
Elders share price snapshot
Over the past 12 months, the Elders share price has declined 10%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
