The Elders Ltd (ASX: ELD) share price has dropped 21% after releasing its FY26 half-year result, including certain challenges.
Elders is involved in a wide variety of agricultural and regional operations across Australia including agricultural chemicals, animal health products, wholesale products to farm supplies retailers, rural sector retail products, livestock and wool agency services, wool storage and handling, real estate and property management services, regional financial services, and more.
Elders FY26 half-year result
Here are some of the highlights for the six months to 31 March 2026:
- Underlying sales revenue up 32% to $1.77 billion
- Underlying EBIT (EBIT explained) grew 33% to $76.6 million
- Underlying net profit after tax (NPAT) increased 13% to $37.9 million
- Underlying earnings per share (EPS) down 4% to $0.181
- Statutory net profit up 17% to $39.5 million
- Operating cashflow surged 115% to $67 million
- Interim dividend per share flat at $0.18
What happened in the HY26 report?
During the half, Elders announced the sale of the Killara Feedlot – Killara’s financial results are excluded from underlying earnings.
Elders reported that its crop protection EBIT increased compared to last year across all businesses, mainly Titan Ag, due to improved procurement of raw materials. ‘People costs’ increased, with a view to succession planning.
Australian Independent Rural Retailers (AIRR) EBIT slightly declined year on year, with temporary people cost growth more than offsetting the sales uplift, gross profit margin percentage improvements and warehouse efficiencies.
Elder Rural Services EBIT was “favourable” across most products and services, with livestock prices driving most of the earnings growth. Additional costs were impacted by acquisitions, as well as expansion of the Elders Finance broker network.
Elders acquired the Delta Agribusiness in November 2025, which reported an EBIT of $10.4 million in the first five months under Elders’ ownership, with earnings weighted to the second half.
The Elders real estate business EBIT was driven by growth in residential turnover and property management, reflecting both organic and acquisition growth.
Corporate and other costs saw a rise in IT costs after the partial transition of systems modernisation expenses to ongoing business and the costs associated to run dual platforms.
Outlook for the Elders share price
The company said it’s well positioned for the second half with full-year earnings from Delta Agribusiness, system modernisation benefits and synergies.
Elders said further benefit is expected from renewed operational focus. The new divisional structure is “already reaping benefits through improved alignment and efficiency gains”.
It noted that elevated diesel prices remain a risk to Elders’ cost base in the second half, though current prices have eased from the high seen in March.
Elders said key financial metrics are expected to improve in the second half and it has optimism for the winter crop.
It also said that price volatility in fuel and fertilisers are creating challenges for its supply chain in the first half, though its supply relationships have allowed it to manage demand ensure growers are equipped for the season ahead.
At close to a five-year low, I think the Elders share price is at an attractive price to buy for a contrarian turnaround because of the company’s importance to the regional economy and the cyclical nature of its net profit.
