The Elders Ltd (ASX: ELD) share price is up 4% after the company announced its impressive FY26 result.
Elders is involved in a wide array of agricultural and rural services including agricultural chemicals and animal health products, wholesale, livestock and wool agency services, wool storage and handling, real estate sales and property management, regional financial services, and online trading platforms.
FY26 result
Below are the highlights of the result for the 12 months to 30 September 2026:
- Underlying sales revenue grew 31% to $4 billion
- Underlying EBIT (EBIT explained) grew 43% to $187.7 million
- Underlying profit before tax grew 43% to $147.5 million
- Underlying profit after tax rose 30% to $100.5 million
- Statutory net profit after tax (NPAT) grew by 187% to $144.2 million
- Underlying earnings per share (EPS) grew 13% to $0.473
- Total dividends per share maintained at $0.36 (fully franked, up from 50% franked)
What happened in the result?
The company said that Delta Agribusiness, acquired on 3 November 2025, contributed 11 months of earnings during the year, and significant progress was reportedly made in realising acquisition synergies.
It noted that it successfully completed the sale of Killara Feedlot on 30 June 2026. This was reported as a discontinued operation and removed from both underlying earnings in both current and prior years.
Elders said that targeted investment in capability and growth was balanced with disciplined cost management. There were improvements in cost to earn, leverage and return on capital demonstrating stronger operating efficiency and returns, according to Elders.
Outlook for the Elders share price
Elders noted some forecasts from the Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES):
- The fourth largest winter crop on record is expected
- A lower summer crop production and area planted driven by below average soil moisture levels in some regions
- A slight decline in livestock prices, which are expected to remain elevated relative to historic averages
- Strengthening wool markets with improvements in price, with lower supply and stronger global demand
Elders said that with this positive agricultural outlook, it is positioned for growth in FY27, with the first full year of Delta Ag earnings and benefits from synergies supporting further growth.
The gross profit margin is expected to improve due to the “incremental realisation of SysMod benefits”, however this may be partly offset by softening livestock prices and temporarily subdued real estate activity.
Cost efficiency initiatives will continue throughout FY27 to simplify its operating model and improve productivity, underpinned by modern IT infrastructure.
The future looks positive for the company and it continues to strengthen its position in the market. Due to the cyclical nature of the business, I think it can be a great time to buy when there’s weakness, though I wouldn’t describe this period as weak.
If I were a shareholder, I’d be very happy with the reported numbers. But, there are other ASX dividend shares I’d prefer to buy first today.
