JB Hi-Fi has reported a solid 7.3% increase in revenue and a 7.1% rise in net profit for the half-year ended December 2025, alongside a fully franked interim dividend of 210 cents per share.
- Revenue climbs to $6.085 billion, up 7.3%
- Net profit rises 7.1% to $305.8 million
- Interim dividend declared at 210 cents per share, fully franked
- Segment growth across Australia, New Zealand, The Good Guys, and e&s
- Company faces ongoing class action and tax appeal
Strong Half-Year Performance
JB Hi-Fi Limited has delivered a robust financial performance for the half-year ended 31 December 2025, with revenue reaching $6.085 billion, marking a 7.3% increase compared to the same period last year. Net profit attributable to shareholders rose by 7.1% to $305.8 million, reflecting steady growth across the company’s core retail operations.
The company’s results were reviewed by Deloitte, who found no material issues, underscoring the reliability of the reported figures. This performance comes amid a competitive retail environment, with JB Hi-Fi successfully capitalising on seasonal demand spikes during Black Friday and the Christmas period.
Dividend Boost and Shareholder Returns
In recognition of its strong earnings, JB Hi-Fi declared an interim dividend of 210 cents per share, fully franked at the 30% corporate tax rate. This interim dividend represents a significant increase from the previous year’s interim payment and signals the company’s confidence in its ongoing cash flow generation and financial health.
The dividend record date is set for 27 February 2026, with payment scheduled for 13 March 2026. This move is likely to be well received by investors seeking both income and growth from their holdings in the consumer electronics retail sector.
Segment and Operational Highlights
JB Hi-Fi’s growth was broad-based across its key segments. The Australian operations remain the largest contributor, with revenue of $4.12 billion and an EBIT of $341 million. The New Zealand business and The Good Guys also posted solid gains, while the e&s segment, recently acquired, continued to integrate smoothly with the group’s operations.
The company maintains a strong balance sheet, with cash and cash equivalents of $489.5 million and available borrowing facilities of $270 million, providing ample liquidity to support ongoing operations and potential future investments.
Legal and Regulatory Matters
JB Hi-Fi is currently defending a class action related to the sale of extended warranties in its Australian business, with the outcome yet to be determined. Additionally, the company has lodged an appeal concerning a technical tax matter, the resolution of which remains uncertain. These legal proceedings represent potential risks that investors will be watching closely in upcoming reporting periods.
Looking Ahead
No new acquisitions were made during the half-year, and the provisional accounting for the e&s acquisition was finalised without material adjustments. The company’s directors remain optimistic about the prospects for continued growth, supported by strong operational momentum and a healthy financial position.
Bottom Line?
JB Hi-Fi’s solid half-year results and increased dividend highlight resilience, but legal challenges warrant close investor attention.
Questions in the middle?
- How will the class action and tax appeal impact JB Hi-Fi’s future earnings?
- Can JB Hi-Fi sustain its growth momentum across all segments amid evolving retail trends?
- What strategic moves might JB Hi-Fi pursue next given its strong liquidity position?