The EBOS Group Ltd (ASX: EBO) share price is in focus today after the company trimmed its FY26 underlying EBITDA guidance to $610–$620 million, down from a previous range of $615–$635 million, due to higher fuel and energy costs.
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What did EBOS Group report?
- FY26 underlying EBITDA now expected at $610–$620 million (prior guidance was $615–$635 million)
- Additional $5–$10 million in fuel-related costs to be absorbed this financial year
- Underlying demand across the Group remains stable
- Challenges stem from elevated fuel prices and increased logistics and consumable costs
- Impact limited to FY26, with mitigation efforts underway for FY27
What else do investors need to know?
EBOS Group has seen a significant rise in fuel prices and energy-related expenses, mainly affecting its logistics and distribution activities. These higher costs are a result of global supply disruptions and increased geopolitical risks.
The Group says it cannot immediately or fully pass on these cost increases to customers, partly due to government contracts and its vital role in the healthcare supply chain. Talks with the Australian Government about fuel cost recovery are ongoing, but outcomes or timing are still uncertain.
What's next for EBOS Group?
EBOS Group is moving ahead with operational efficiency measures to help offset the impact of higher costs. Management anticipates these steps will begin to reduce the effect of elevated fuel and consumables prices in FY27.
The business remains committed to reliable healthcare delivery in Australia and New Zealand, focusing on service continuity while handling current cost pressures.
EBOS Group share price snapshot
Over the past 12 months, EBOS Group shares have declined 48%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.
