Skellerup lifts FY26 profit guidance on stronger US sales and easing supply risks
Skellerup has raised its FY26 net profit after tax forecast to $64-$65 million, driven by robust demand in the US and New Zealand markets, improved supply chain conditions, and favourable currency and tariff impacts.
- FY26 NPAT guidance increased to $64-$65 million from $57-$62 million
- Stronger than expected US market sales across multiple segments
- Improved supply chain security amid material availability challenges
- Lower US tariffs and weaker NZD support earnings
- Full audited results due 20 August 2026
Upgraded Profit Forecast Reflects Surging US Demand
Skellerup (NZX:SKL) has boosted its full-year FY26 net profit after tax guidance to a range of $64 million to $65 million, up from the previous $57 million to $62 million forecast. This marks a notable increase from FY25’s $54.5 million result, signalling stronger momentum than anticipated.
Chief Executive Graham Leaming attributed the upgrade primarily to unexpectedly high sales in the US market, which remains Skellerup’s largest. Demand has surged across potable water, wastewater, dairy, footwear, and marine applications during the fourth quarter, outpacing earlier projections.
Supply Chain Challenges Easing, Currency and Tariffs Provide Tailwinds
Leaming highlighted the company’s operational teams for their agility in navigating a period of significant uncertainty around the availability of key materials. While challenges persist, the risks related to supply security have diminished, helping to support the earnings upgrade.
Additional tailwinds include reduced US tariff costs and a weaker New Zealand dollar, both of which have contributed positively to fourth-quarter earnings. The seasonal peak for dairy consumables sales in New Zealand also exceeded expectations, further bolstering results.
Looking Ahead to Audited Results and Market Implications
Skellerup plans to release its audited FY26 results on 20 August 2026, which will provide full clarity on the final profit outcome. Investors will be watching how sustained the US demand growth is and whether supply chain improvements continue amid global uncertainties.
Given the upgrade excludes a non-recurring insurance gain, the core business performance appears robust. The company’s ability to manage procurement and manufacturing under pressure will remain a key factor as it navigates the remainder of FY26 and beyond.
Bottom Line?
Skellerup’s earnings upgrade signals stronger US demand and easing supply risks, but sustaining this momentum will be critical as FY26 closes.
Questions in the middle?
- Will Skellerup maintain its US market growth beyond the seasonal peak?
- How resilient is the supply chain amid ongoing global material shortages?
- What impact will currency fluctuations and tariff changes have on FY27 forecasts?
