The Select Harvests Ltd (ASX: SHV) share price jumped 14% in response to the FY26 half-year result.
Select Harvests is one of the largest almond growers in Australia.
FY26 half-year result
Here are some of the highlights from the report for the six months to 31 March 2026:
- EBITDA (EBITDA explained) decreased by 6% to $59 million
- Underlying net profit after tax down up by 33% to $29.1 million
- Reported net profit after tax (NPAT) down 7.3% to $26.6 million
- Interim dividend per share of $0.035 (up from $0 in HY25)
- Share buyback of up to 10% of issued Select Harvests shares
What are some highlights?
The business said that it’s driving for increased crop productivity with better yields. It said that the 2026 crop is to be one of the largest crops for the company due to investments in both farming practices and processing practices.
It also noted that it has contracted a significant increase in external volumes in 2026.
Its value proposition for external growers, according to Select Harvests, includes better pricing outcomes, better yields, better access to stock pads, drying and processing capacity, and trusted relationships and access to crop data and grower financing support.
Select Harvests said it’s growing its customer base, particularly in China and India, allowing for an improved sales profile and diversification as it adds more direct customers.
It’s also pursuing cost and business improvement initiatives across orchard operations, processing and corporate functions. However, there has been an increase in some one-off costs due to the war in the Middle East, the impact of wet weather on harvest operations and Australian inflation.
The buy-back has been announced because the board doesn’t think the company’s valuation reflects its value.
Outlook for the Select Harvests share price
The company aims to increase its almond volume to 65,000MT and $700 million of revenue by 2030.
It also said that 2027 crop growing program has commenced, with water allocations remaining favourable, though temporary market pricing has increased. Despite Middle East challenges, it has secured fertiliser for the 2027 crop.
I can see why the valuation has jumped in response to this. I think there’s merit in considering a cyclical business during times of weakness. Is this a good valuation to buy today? I’m not sure, so there are other ASX shares I’d rather focus on. But, I’d be happy as a shareholder.
