The JB Hi-Fi Ltd (ASX: JBH) share price is up more than 7% as investors loved the FY26 half-year result.
JB Hi-Fi is one of Australia’s largest retailers of consumer electronics, whitegoods, appliances and home entertainment products through its brands JB Hi-Fi, The Good Guys and e&s. The company operates in Australia and New Zealand online and through a network of over 340 retail stores.
JB Hi-Fi FY26 half-year result
Here are some highlights from the 6 months ending 31 December 2025:
- Total sales grew 7.3% to $6.1 billion
- EBIT (EBIT explained) increased 8.1% to $454 million
- Net profit after tax (NPAT) rose 7.1% to $305.8 million
- Earnings per share (EPS) increased 7.1% to $2.80
- Interim dividend per share is up 23.5% to $2.10
What drove these numbers? Let’s dive into the details of the individual segments.
JB Hi-Fi Australia
JB Hi-Fi Australia saw total sales increase 6.3% to $4.12 billion and comparable sales up 5%. This was driven by continued customer demand for technology and consumer electronics products and “strong promotional execution”.
Gross profit increased by 6.9% to $904.5 million and EBIT grew by 7.7% to $340.9 million with the EBIT margin up 11 basis points (0.11%) to 8.27%.
JB Hi-Fi New Zealand
JB Hi-Fi New Zealand total sales grew by 32.6% to NZ$268.6 million, with comparable sales growth of 20.2%.
Gross profit increased by 32.8% to NZ$45.8 million and EBIT grew 104.5% to NZ$4.5 million with the EBIT margin up 59 basis points (0.59%) to 1.69%.
The Good Guys
The Good Guys reported that total sales increased 4.1% to $1.58 billion, with comparable sales growth of 4%.
Gross profit increased by 5% to $368.8 million, while EBIT grew 8% to $107.4 million thanks to a rise of 24 basis points in the EBIT margin to 6.79%.
e&s
Total e&s sales were $144.8 million. It was acquired during last year’s period, but assuming full-year ownership, total sales rose 2.9% with comparable sales down by 0.1%.
Gross profit was $43.8 million, with the gross profit margin improving 261 basis points (2.61%) to 29.96%.
EBIT was $1.7 million, which was in line with expectations.
Dividend
The company noted that in FY26 onwards, the company’s dividend payout ratio is increasing from 65% to a range of between 70% to 80% of net profit. The HY26 payout ratio is 75% of net profit.
Outlook for the JB Hi-Fi share price
The company’s trading update was solid for January 2026.
JB Hi-Fi Australia sales increased 4% year on year, JB Hi-Fi New Zealand sales grew 26.4%, The Good Guys sales growth was 2.7% and e&s sales declined 4.6%.
The JB Hi-Fi CEO Nick Wells said:
Whilst we are pleased to see sales growth continue in January in JB Hi-Fi and The Good Guys, cycling strong sales in the prior year, we remain cautious given the uncertainty in the retail market and the continued competitive activity. As always, we will remain focused on maximising demand through driving great value for our customers and delivering consistently high levels of customer service.
We are grateful to our over 16,000 team members whose continued focus on our customers and ability to adapt and respond has helped to deliver another strong half year result.
The JB Hi-Fi share price is down around 30%, so it’s a lot cheaper. I can see why the business is up so much in response to this result – ongoing growth is pleasing to see.
At this lower valuation, I think it’s one of the ASX dividend shares to consider with the stronger dividends and ongoing sales growth.
