The Brambles Ltd (ASX: BXB) share price was in focus following a trading update that revealed revised FY26 guidance and the announcement of a new US$400 million share buy-back.
Image source: Getty Images
What did Brambles report?
- FY26 sales revenue growth revised to 2–3% (previously 3–4%) at constant FX rates
- Underlying Profit growth now expected at 3–5% (previously 8–11%) at constant FX
- Free Cash Flow before dividends now forecast between US$1,000–1,100 million
- New US$400 million on-market share buy-back to commence after current program
- Repair capacity constraints in the US expected to impact FY26 earnings by ~US$60 million
- Dividend payout policy remains unchanged at 50–70% of Underlying Profit
What else do investors need to know?
Brambles is investing heavily in improving pallet quality and boosting repair capacity across its US network. This follows increased automation amongst customers, which demands more consistent, higher-quality pallets.
Short-term constraints arose in April 2026, driven by subcontractor changes, labour shortages, and heightened customer demand. Brambles expects these issues to ease by the end of 1H27 and will provide another update with its full-year results in August 2026.
The company is responding by increasing pallet relocations, adding repair resources, and purchasing around 2 million new pallets in 4Q26—with further purchases anticipated next half.
What did Brambles management say?
Brambles CEO Graham Chipchase said:
Our immediate priority is to meet our customers' needs and to restore stability and service in the affected parts of our US network. Our response and ongoing investments in quality reinforce that meeting our customers' needs is non-negotiable. We will not compromise on the investment required to meet the quality, network resilience and service outcomes our customers expect.
What's next for Brambles?
Brambles remains focused on supporting its US operations and restoring service levels. While the company expects short-term cost headwinds, it is confident these will ease as initiatives take effect.
Looking ahead, Brambles reaffirms its FY28 goal to expand margins by at least 3 percentage points versus FY24. Ongoing investment in innovation, digital capability, and customer solutions remains a key part of Brambles' longer-term strategy.
Brambles share price snapshot
Over the past 12 months, Brambles shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
