Ansell Reports US$88.8M Net Profit on US$1.03B Revenue in FY26 H1

Financial Highlights and Operational Performance

Ansell Limited has delivered a strong first half performance for FY26, with net profit attributable to members soaring 61.5% to US$88.8 million. This impressive growth was underpinned by a 15.3% increase in operating profit (EBIT) to US$146.9 million, reflecting improved operational efficiencies and the realisation of synergies from the Kimberly-Clark Personal Protective Equipment business (KBU) acquisition completed in mid-2024.

Revenue for the half year was essentially flat, rising 0.7% to US$1.03 billion on a reported basis, though it declined slightly by 0.6% on an organic constant currency basis. This modest organic dip was largely due to the non-recurrence of one-off sales recognised in the prior period, including temporary order patterns and supply chain disruptions that had previously inflated sales figures.

Segment Performance and Cost Management

The Industrial segment showed resilience with organic constant currency sales growth of 1.2%, or 3.4% when excluding prior period stockpiling effects. Growth was supported by tariff-related pricing actions in the US and strong demand for new mechanical protection products such as HyFlex® and Ringers®. Meanwhile, the Healthcare segment experienced a 2.0% organic decline, though this improved to 1.1% growth after adjusting for prior period non-recurring sales related to surgical products delayed by shipping disruptions.

EBIT margins expanded to 14.3%, up from 12.5% in the previous corresponding period, driven by lower freight costs, enhanced sourcing productivity, and increased synergies from the KBU integration. The company’s Accelerated Productivity Investment Program (APIP) has now achieved its targeted annualised pre-tax cost savings of US$50 million, with ongoing investments in ERP system upgrades and manufacturing facilities, including a greenfield surgical plant in India nearing completion.

Balance Sheet Strength and Capital Management

Ansell’s balance sheet remains robust, with net debt marginally increasing to US$583 million but the net debt to EBITDA ratio improving to 1.5x from 1.6x a year earlier. The company maintains strong liquidity with US$719 million in undrawn debt facilities and cash. Capital management initiatives included US$47.2 million in share buybacks and US$15.7 million in treasury share purchases, aligned with the company’s strategy to optimise shareholder returns.

Leadership Transition and Outlook

In a significant leadership development, CEO Neil Salmon announced his retirement after 13 years with Ansell, including nearly five years as CEO. Nathalie Ahlström will succeed him, commencing a transition period in late January 2026 and officially taking the helm in mid-February. Salmon will remain as a special advisor through June to ensure continuity.

Looking ahead, Ansell anticipates sustained earnings momentum and organic constant currency sales growth in the second half of FY26, supported by stable market conditions, continued productivity improvements, and further integration benefits from recent acquisitions.