The Harvey Norman Holdings Ltd (ASX: HVN) share price is in focus today after the company posted a double digit uplift in profit before tax and raised its interim dividend for the half-year ended 31 December 2025.
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What did Harvey Norman report?
- Total system sales revenue up 6.9% to $5.16 billion
- Profit before tax increased 16.5% to $466.31 million
- Net profit after tax & non-controlling interests up 15.2% to $321.91 million
- EBIT up 14.4% to $527.53 million
- Fully-franked interim dividend increased 20.8% to 14.5 cents per share
- Basic earnings per share up 15.3% to 25.84 cents
What else do investors need to know?
Harvey Norman's franchising operations posted a 14.2% increase in profit before tax, with better margins and robust sales. Overseas company-operated businesses delivered a notable profit lift, especially in Singapore, Malaysia, New Zealand, Ireland, Slovenia, and Croatia, partly offset by expansion costs in the UK.
The property segment's profit before tax rose 7.8% to $178.82 million thanks to rental growth and low vacancies, and there was a fair value uplift in the New Zealand property portfolio. The balance sheet remains strong, with net assets at $4.95 billion and a low net debt to equity ratio of 13.02%.
Operating cash flows reached $392.88 million, supported by solid cash receipts from both retail sales and franchise fees, with a cash conversion ratio of 96.2%.
What did Harvey Norman management say?
Chairman Gerry Harvey said:
This is a very solid first-half result, with profit growth driven by higher system sales, disciplined cost control and strong performances across our franchising operations and overseas retail businesses.
What's next for Harvey Norman?
Harvey Norman said sales momentum has continued into January 2026, with aggregated system sales up 4.6% and comparable sales up 4.3% over the prior period. The company remains focused on disciplined growth, cost control, and capital management, aiming to support further expansion in Australia and overseas.
The group's strong asset base and low gearing leave it well-placed to continue investing in its retail and property operations despite ongoing competition and changing market conditions.
Harvey Norman share price snapshot
Over the past 12 months, Harvey Norman shares have risen 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.
