JB Hi-Fi delivered a solid FY26 with record revenue and profit growth, declaring a 22.5% higher dividend and advancing its net-zero emissions goal.
- Record FY26 revenue of $11.06 billion, up 4.8%
- Net profit after tax rises 6.0% to $489.9 million
- Final dividend increased 21% to 127 cents per share
- Strong growth in JB Hi-Fi New Zealand and e&s divisions
- 68% of energy sourced from renewables, targeting net-zero by 2030
Record Sales and Profit Growth Across Brands
JB Hi-Fi Limited (ASX:JBH) has capped off FY26 with record group sales of AUD 11.06 billion, a 4.8% lift on the prior year, and net profit after tax (NPAT) of $489.9 million, up 6.0%. Earnings per share rose 5.9% to 448.1 cents, reflecting steady operational momentum despite a challenging retail environment in the latter half of the year.
The company’s flagship JB Hi-Fi Australia segment posted $7.42 billion in sales, up 4.4%, with comparable sales growth of 3.2%. Key drivers included Computers, Mobile Phones, Fitness, Small Appliances, and IT categories. Online sales grew 7.0% to $1.28 billion, representing 17.2% of total sales. Gross margin ticked slightly lower to 21.94%, impacted by sales mix, while disciplined cost control kept the cost of doing business (CODB) stable at 12.46%. EBIT rose 3.2% to $547.3 million.
New Zealand and e&s Deliver Strong Momentum
JB Hi-Fi New Zealand surged with a 26.0% increase in sales to NZD 499.5 million, alongside a 15.3% comparable sales gain. Growth was broad-based across Mobile Phones, Computers, Audio, Small Appliances, and Games Hardware. Online sales jumped 36.7% to NZD 86.2 million (17.3% of total sales). Gross margin improved by 41 basis points to 17.41%, and CODB fell 106 basis points to 13.66%, driving EBIT to a positive NZD 4.1 million from a slight loss the previous year.
The Good Guys continued steady progress, with sales up 2.7% to $2.94 billion and EBIT rising 6.0% to $184.0 million. The business gained market share despite a softer home appliance market in Q4. Online sales grew 13.1% to $481.3 million (16.4% of total sales), while gross margin expanded 27 basis points to 23.74%.
Meanwhile, e&s, the premium home appliances and bathroom products retailer acquired in FY25, reported $273.1 million in sales for the full year (including 10 months in FY25). While comparable sales declined 3.2% on a full-year basis, gross margin improved 117 basis points to 29.72%, reflecting a shift to agency sales. EBIT swung to a modest loss of $0.4 million as the business invests in strategic growth initiatives.
Balance Sheet Strength and Capital Management
JB Hi-Fi’s balance sheet remains robust with no interest-bearing debt and cash reserves of $206.5 million. Working capital rose $85.2 million year-on-year, driven by inventory purchases ahead of supplier price increases and key promotional periods. Capital expenditure increased to $87.4 million, focusing on store network expansion, online platforms, and strategic initiatives.
The Board has declared a fully franked final dividend of 127 cents per share, a 21% increase on FY25, bringing total ordinary dividends for FY26 to 337 cents per share; a 22.5% rise representing a 75% payout ratio of NPAT. The final dividend record date is 28 August 2026, with payment on 11 September 2026.
Sustainability Progress and Climate Strategy
JB Hi-Fi is advancing its sustainability agenda, reporting that 68% of its energy needs in FY26 were met from renewable sources, contributing to a 58% reduction in scope 1 and 2 emissions since its FY20 baseline. The Group targets net-zero direct scope 1 and 2 (market-based) carbon emissions by 2030 through renewable energy procurement, energy efficiency, and fleet rationalisation.
The company’s climate-related risks and opportunities are overseen by dedicated governance structures, including the Board and Audit and Risk Management Committee. JB Hi-Fi has identified key climate risks such as severe weather impacts on operations and supply chains, and transition risks from increasing carbon regulation. Opportunities include growing demand for energy-efficient products and services supporting household resilience.
Initiatives include expanding on-site solar installations, increasing renewable energy procurement, and integrating climate considerations into executive remuneration via strategic non-financial targets. The Group also focuses on ethical sourcing, waste diversion (up 7% to 67%), and community engagement, raising $4.8 million through workplace giving programs in FY26.
Leadership and Governance Updates
FY26 marked a leadership transition with Nick Wells appointed Group CEO in October 2025, succeeding Terry Smart. The Board remains composed of a majority of independent non-executive directors, with recent changes including the retirement of Richard Uechtritz and the appointment of Terry Smart as a non-executive director effective October 2026.
Executive remuneration aligned with company performance saw variable reward plan incentives vesting between 42% and 54% of maximum, reflecting challenging market conditions in the second half of FY26. The Board has adjusted FY27 incentive targets to better correlate executive rewards with financial performance.
Trading Update and Outlook
July 2026 sales showed mixed results: JB Hi-Fi Australia declined 0.5% with comparable sales down 1.4%, while New Zealand grew 20.9% with 11.7% comparable sales growth. The Good Guys and e&s experienced slight declines. The Group notes ongoing variability as customers seek value and shift spending to promotional events. Supplier price increases and stock shortages in technology categories continue to weigh on growth.
Management remains focused on leveraging strong supplier relationships, expanding market share, and delivering exceptional customer service across physical and digital channels to navigate the uncertain retail environment ahead.
With a strong balance sheet, diversified brand portfolio, and clear sustainability roadmap, JB Hi-Fi aims to sustain growth and shareholder returns amid evolving market dynamics.
Bottom Line?
JB Hi-Fi’s FY26 results underscore resilience and strategic execution, but near-term trading softness and evolving climate risks warrant close monitoring.
Questions in the middle?
- How will JB Hi-Fi’s new dividend policy influence capital allocation in FY27 and beyond?
- What impact will supply chain disruptions and supplier price inflation have on margins this year?
- Can the Group’s sustainability initiatives translate into tangible competitive advantages and cost savings?