Elders Faces Seasonal and Trade Risks Despite Strong FY25 Results

Strong Financial Performance Despite Mixed Conditions

Elders Limited (ASX – ELD) showcased a robust FY25 financial result during its Investor Day presentation on 30 January 2026. The agribusiness giant reported a 12% increase in earnings before interest and tax (EBIT) to $143.5 million, alongside a 34% rise in underlying net profit after tax to $86 million. This growth was achieved despite challenging seasonal conditions, particularly dry weather impacting South Australia and Victoria.

Sales revenue edged up 2% to $3.2 billion, while gross margin improved 7% to $684.6 million, reflecting Elders’ diversified portfolio and operational resilience. The company’s return on capital remained stable at 11.3%, underscoring efficient capital deployment amid ongoing transformation investments.

Strategic Portfolio and Operational Optimisation

Elders continues to execute its Fourth Eight Point Plan (FY24-FY26), targeting 5-10% EBIT and earnings per share growth through agricultural cycles with a 15% return on capital. The plan emphasises streamlining supply chains, adopting technology solutions, expanding product and service offerings, and enhancing margins through value chain integration.

The company has transitioned to a divisional model to sharpen focus and accountability across its core businesses – Elders Rural Services, Elders Crop Protection, AIRR wholesale network, Delta Agribusiness (acquired in FY25), and Elders Real Estate. This structure supports agile decision-making and scalable growth.

Key Divisional Highlights and Growth Drivers

The Crop Protection division is advancing backward integration strategies, expanding toll manufacturing capacity at its AgriToll facility in Western Australia, and leveraging Eureka!’s R&D capabilities to develop innovative formulations. Meanwhile, the AIRR wholesale network is growing its footprint and member base, focusing on private label products and supply chain excellence.

Delta Agribusiness, integrated from November 2025, adds significant scale and geographic diversification, particularly in New South Wales and Victoria. Elders Real Estate continues strong growth through acquisitions and agent recruitment, supported by a robust settlement pipeline despite moderating price growth in residential markets.

Financial Discipline and Leverage Reduction

Elders is committed to maintaining financial discipline, targeting a leverage ratio below 2.0 times by FY26. This is supported by working capital optimisation, earnings growth, and potential divestment of the Killara feedlot. The company’s cash conversion rate is forecast to exceed 90% in FY26, reflecting strong operating cash flow generation.

Cost growth was contained below inflation, excluding acquisitions and transformation projects, demonstrating effective cost management amid expansion. The company also highlighted ongoing investments in sustainability initiatives, technology adoption, and community engagement as integral to its long-term strategy.

Looking Ahead

With a clear strategic roadmap and diversified business model, Elders is well-positioned to navigate agricultural cycles and market uncertainties. The integration of Delta Agribusiness and continued focus on operational efficiencies and innovation are expected to underpin future growth and shareholder returns.