GrainCorp sells GrainsConnect Canada and updates on FY26 crop volumes

GrainCorp sells GrainsConnect Canada and provides an update on lower FY26 crop volumes.

Laura Stewart

Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein

Published December 17, 2025 10:18 am AEDT

The GrainCorp Ltd (ASX: GNC) share price could be in focus today after the company announced the sale of its GrainsConnect Canada joint venture and provided a trading update, highlighting an expected drop in receival volumes for FY26 compared to last year.

The word Sale is spelled out using four large letters sitting on bright green grass with blue sky in the background indicating a land property sale — Image source: Getty Images

What did GrainCorp report?

Sale of GrainsConnect Canada JV to Parrish & Heimbecker for C$150 million (cash-free, debt-free basis)
GrainCorp expects to recognise a loss on sale of approximately A$5–10 million
Preliminary FY26 receival volumes estimated at 11.0–12.0 million tonnes (FY25: 13.3 million tonnes)
No impact to through-the-cycle EBITDA of A$320 million
Full earnings guidance to be provided at AGM on 18 February 2026

What else do investors need to know?

The GrainsConnect sale follows a strategic review after a period of challenging financial performance for the joint venture. GrainCorp and its partner considered several alternatives before deciding on the sale as the most value-positive option.

GrainCorp's Canadian marketing offices in Winnipeg are not part of the transaction and will continue operations, maintaining support for customers and delivering market insights to the wider team.

Harvest activity for the 2025–26 winter crop is mostly complete in Queensland and northern NSW, but weather disruptions continue in other regions. The company is focusing on cost management due to lower expected crop volumes and ongoing margin pressure.

What did GrainCorp management say?

Robert Spurway, Managing Director and CEO said:

This transaction reflects GrainCorp's ongoing commitment to portfolio optimisation and our readiness to rationalise assets where necessary to improve returns. Divestment of GrainsConnect allows GrainCorp to focus on alternative value-creating opportunities that are in the best interests of our shareholders.

What's next for GrainCorp?

Completion of the GrainsConnect transaction is anticipated in the first half of 2026, pending standard conditions. GrainCorp says it remains focused on cost control and supporting customers, with further clarity on earnings to be announced at the February AGM.

While crop receival volumes are down due to market and weather pressures, the company's core EBITDA guidance is unchanged. GrainCorp's strategy includes ongoing optimisation of its portfolio and supporting its Australian and global agribusiness operations.

GrainCorp share price snapshot

Over the past 12 months, GrainCorp shares have risen 12%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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