GrainCorp reported a resilient FY25 with increased grain handling volumes and steady dividends, despite global margin pressures. The company’s strategic investments and operational efficiencies position it well for future growth.
- Underlying EBITDA rose to $308 million, up from $268 million in FY24
- Underlying NPAT increased to $87 million despite a lower reported net profit
- East Coast Australia grain handling volumes grew to 31.6 million tonnes
- Record canola seed crush volumes achieved amid margin challenges
- Declared fully franked dividends of 48 cents per share and ongoing share buy-back
Robust Financial Performance Amid Global Challenges
GrainCorp Limited has delivered a solid financial performance for the fiscal year ended September 30, 2025, demonstrating resilience in a challenging global margin environment. The company reported an underlying EBITDA of $308 million, a notable increase from $268 million the previous year, reflecting effective operational execution and disciplined planning. However, net profit after tax (NPAT) declined to $40 million from $62 million, largely influenced by non-cash impairments and transformation costs, while underlying NPAT rose to $87 million, signaling core profitability strength.
Growth in Grain Handling and Operational Efficiency
The East Coast Australia (ECA) segment was a standout contributor, handling 31.6 million tonnes of grain, up from 28.0 million tonnes in FY24. This increase was driven by higher domestic outloads and exports, supported by successful chickpea and canola programs that delivered superior margins. GrainCorp’s bulk materials program also achieved record contribution margins, underscoring the company’s diversified operational base. Meanwhile, the Nutrition and Energy segment crushed a record 557,000 tonnes of canola seed, despite facing margin pressures from a smaller Victorian crop and abundant global oilseed supply.
Strategic Investments and Shareholder Returns
Maintaining a strong balance sheet with core cash of $321 million, GrainCorp continues to invest in supply chain efficiencies and technology integration, including AI and advanced analytics, to optimize throughput and enhance grower experience. The company declared fully franked dividends totaling 48 cents per share, consistent with the prior year, and progressed its on-market share buy-back program, repurchasing 5.2 million shares for approximately $38 million. These moves reflect a balanced approach to capital management amid ongoing market uncertainties.
Challenges and Strategic Review
GrainsConnect Canada underperformed financially, prompting a non-cash impairment of $26 million and an ongoing strategic review expected to conclude in the first half of 2026. This highlights some uncertainty in GrainCorp’s international operations. Additionally, the company is advancing feasibility studies for a domestic renewable fuels supply chain, aligning with government initiatives and the $1.1 billion Cleaner Fuels Program, signaling a forward-looking commitment to sustainability and energy transition.
Looking Ahead
With the 2025-26 ABARES forecast projecting a 30.0 million tonne winter crop in ECA and a strong harvest start, GrainCorp is well positioned to navigate ongoing global supply pressures. While margin challenges persist, the company’s strategic focus on operational excellence and innovation provides a foundation for capturing emerging market opportunities. Investors can expect further clarity on earnings guidance at the company’s Annual General Meeting in February 2026.
Bottom Line?
GrainCorp’s FY25 results underscore operational resilience and strategic focus, but upcoming reviews and margin pressures warrant close investor attention.
Questions in the middle?
- What will be the outcome and strategic direction from the GrainsConnect Canada review?
- How will ongoing global margin pressures impact GrainCorp’s profitability in FY26?
- What progress will GrainCorp make in establishing a renewable fuels supply chain?