Elders Ltd (ASX: ELD) shares are trading around 2% higher this morning (as of the time of writing) after the agribusiness delivered a steady full-year result, confirmed a solid dividend, and provided a constructive outlook for FY26.
The results highlighted the strength of Elders' diversified portfolio. Softer crop protection sales in drought-affected regions were more than offset by strong performances in livestock, real estate, and financial services.
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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 million
- Final dividend maintained at 36 cents per share
- Cash conversion improved to 137%, up from 129%
- Return on capital steady at 11.3%
Dividend maintained
Elders declared a full franked final dividend of 18 cents per share (fully franked), which brings its total FY25 dividend to 36 cents per share, 75% franked, which is consistent with last year, although the FY24 dividend was 60% franked. The company also confirmed its dividend reinvestment plan remains active, with a 1.5% discount available to shareholders who opt in.
With the Elders share price trading at around $7.09, the maintained dividend leaves Elders offering an attractive yield of approximately 5%, which is pretty good when compared to the broader ASX.
Building momentum into FY26
Management struck an optimistic tone for FY26, supported by:
- A recovery in seasonal conditions in South Australia and Victoria
- Stronger livestock prices and volumes
- Stabilising interest rates, supporting rural and residential real estate
- Material contribution from the recently acquired Delta Agribusiness, which was completed in November
Elders also expects to return to its target leverage range in FY26 and aims for 5% to 10% EBIT and EPS growth through the cycle, supported by cost discipline, system modernisation, and portfolio expansion.
Beyond the headline numbers, Elders continues to reshape the business for longer-term growth. The upcoming integration of Delta Agribusiness, the shift to a new divisional structure, and ongoing investment in systems modernisation are all designed to make Elders a more efficient and more resilient operator through agricultural cycles. While these initiatives add short-term cost, they position the business well for improved margins and better execution in FY26 and beyond.
Foolish bottom line
It wasn't a blow-the-roof-off result from Elders, but it was a clean, resilient performance with a stable dividend and an improving forward outlook. Despite all that, the Elders share price is down 35% over the last 5 years, and so there is still more work to be done.
Today's modest share price rise, however, reflects that whilst investors aren't euphoric, they are encouraged, and for a cyclical agribusiness, that's a decent place to be.
