PGG Wrightson clears NZ$1 billion revenue milestone as FY26 earnings strengthen
PGG Wrightson delivered a sharp improvement in FY26 earnings, with Operating EBITDA up 15% to NZ$64.3 million and net profit rising 46% to NZ$15.6 million. The result supports a fully imputed 5.5 cents per share final dividend, although debt and GO-STOCK receivables have also expanded.
- Revenue exceeds NZ$1 billion for the first time since the 2019 seed business divestment
- Agency EBITDA rises 23% as livestock, wool and property markets improve
- Net interest-bearing debt reaches NZ$88.0 million after Nexan and GO-STOCK investment
- Banking facilities increase to NZ$265 million through September 2029
- Scope 1 and 2 emissions fall 23.4% against the FY21 baseline
FY26 earnings surge on stronger rural markets
PGG Wrightson Limited (NZX:PGW) has crossed NZ$1 billion in annual revenue for the first time since selling its seed business in 2019, as stronger livestock prices, farmer confidence and horticultural activity lifted the rural services group’s FY26 result.
Operating revenue rose 10% to NZ$1.074 billion, while Operating EBITDA, a non-GAAP measure, increased 15% to NZ$64.3 million. Net profit after tax climbed 46% to NZ$15.6 million, with earnings per share rising to 20.6 cents from 14.1 cents. Operating cash flow was the clearest improvement in the accounts, reaching NZ$52.6 million compared with NZ$12.4 million a year earlier.
Agency delivers the strongest earnings growth
The Agency division, which covers Livestock, Wool and Real Estate, produced the sharper improvement. Revenue increased 10% to NZ$221.5 million and Operating EBITDA rose 23% to NZ$29.0 million, helped by elevated sheep, cattle and dairy prices, improving wool conditions and a more active rural property market.
Livestock prices averaged 38.5% higher for sheep, 29.9% higher for cattle and 34.1% higher for dairy than in FY25, according to the report. Real Estate sales volumes rose about 30% for dairy properties and 60% for horticultural properties. Wool volumes fell modestly as New Zealand’s sheep flock declined, but stronger crossbred and mid-micron pricing supported the division.
Retail growth includes Nexan and Blue AG investments
Retail & Water revenue increased 10% to NZ$851.2 million, while Operating EBITDA rose 6% to NZ$44.5 million. Rural Supplies recorded its strongest sales and earnings, Fruitfed Horticulture benefited from kiwifruit and pipfruit activity, and Water delivered growth despite competitive conditions.
The division also absorbed the first full year contribution from Nexan, acquired for NZ$19.9 million in July 2025. Nexan contributed NZ$8.1 million of revenue and NZ$1.0 million of net profit after tax in the 11 months following acquisition, while PGW said the integration had expanded its animal health portfolio. Blue AG, its private-label agrichemical range, also entered its first full trading season, with the company describing early customer adoption as encouraging.
Debt rises as PGW funds expansion
The stronger cash generation did not prevent net interest-bearing debt from rising to NZ$88.0 million, up NZ$2.4 million year on year. The balance includes NZ$19.7 million for the Nexan acquisition and a further NZ$7.0 million invested in GO-STOCK receivables; excluding those two items, PGW says comparable debt would have been NZ$61.3 million.
PGW has nevertheless lengthened and enlarged its funding base. Its syndicated banking facilities now total NZ$265 million, up from NZ$185 million, and run to September 2029. The GO-STOCK portfolio reached NZ$91.3 million after provisions, while the group’s accounts also record a significant impairment provision against one customer that entered liquidation or administration.
FY27 starts positively but remains exposed to conditions
PGW described its start to FY27 as pleasing and expects favourable conditions across red meat, dairy and horticulture to support farm profitability and investment. It also flagged weaker wine and arable markets, election-year caution in rural property, higher input costs, geopolitical tensions, freight disruption and possible El Niño conditions as risks to that outlook.
The accompanying sustainability report adds a longer-term tension to the growth story. PGW’s market-based Scope 1 and Scope 2 emissions fell 23.4% from the FY21 baseline, leaving the group closer to its FY30 target of a 30% reduction. Yet the report identifies farm-to-forestry land conversion, supply-chain disruption, water scarcity and changing agricultural regulation as risks that could reduce customer activity or raise costs. PGW has chosen to continue climate reporting voluntarily after falling below New Zealand’s mandatory reporting threshold, but its climate targets are not linked to executive remuneration.
Bottom Line?
PGW enters FY27 with better earnings momentum and stronger banking headroom, but the durability of that performance will depend on whether market-led gains can outlast higher debt, credit exposure and weather pressure.
Questions in the middle?
- Can the livestock and rural property contribution remain elevated if commodity prices or farmer confidence weaken?
- Will Nexan and Blue AG generate returns that justify the additional capital committed to growth?
- How will GO-STOCK receivables and customer credit quality evolve as the portfolio expands?
