Ansell holds FY27 guidance as margins and dividends strengthen

Ansell Maintains FY27 Earnings Range After Strong FY26

Ansell Limited (ASX:ANN) has kept its FY27 earnings guidance unchanged after a year in which profit growth outpaced sales, cash conversion surged and the full-year dividend rose 35.7%.

The company is guiding to adjusted earnings per share of 158 to 170 US cents for FY27. It expects capital expenditure of $45 million to $55 million, while its new chief executive said first-quarter trading had delivered good constant-currency sales growth, supported by continued demand in the United States.

The guidance decision comes after strong FY26 results, with sales up 5.0% organically and 5.7% on an adjusted basis. Growth accelerated materially in the second half, including higher volumes, while US sales increased 10% and global Cleanroom sales also rose 10%.

Margins, Cash Flow and Dividends Move Higher

Adjusted EBIT grew 14.9% organically, lifting the adjusted margin to 15%. Ansell attributed the stronger earnings performance to product mix and productivity initiatives, as the business responded to new US tariffs, the Middle East crisis and elevated input costs.

Cash conversion improved from 91% in FY25 to 113% in FY26, which management said left the balance sheet in a healthy position. Adjusted EPS reached 148.6 cents, up nearly 18%, supporting the higher full-year dividend of 68.1 cents.

The performance also marks the first full-year address from the CEO who commenced in February after the CEO leadership transition. The executive said the focus now was to accelerate profitable sales growth and move closer to customers.

US Growth and Productivity Form the Core Strategy

Ansell’s growth plan rests on commercial excellence, investment in attractive markets and operational excellence. The US remains central: sales there grew at 1.8 times the group rate, led by premium industrial and scientific segments.

The company also said its five largest brands grew faster in FY26 and contributed to improved margins. Its Accelerated Productivity Investment Program reached its recurring savings target of US$50 million, with further work planned to reduce complexity across products, brands, supply chains and internal processes.

A partnership with Amazon illustrates the commercial pitch. Ansell said hand injuries fell 65% at sites where Amazon deployed the co-developed Ringers impact protection glove, across a potential workforce of around 1.5 million warehouse workers.

Costs Remain Elevated as ERP Rollout Begins

First-quarter margins were trending positively, supported by supply chain productivity and organisational changes aimed at more customer-focused ways of working. Input costs have retreated from their late-FY26 peaks but remain elevated, and Ansell said it retained flexibility to adjust prices when required.

The North American region went live with the first upgraded commercial ERP system in early October. The rollout adds an execution test to the company’s stated simplification agenda, alongside the planned allocation of capital towards higher-growth business segments.

Sustainability and Ebola Response Add Operational Demands

Ansell reported a 32% reduction in its Total Recordable Injury Frequency Rate during FY26, while Scope 1 and 2 emissions reached 36% below the FY20 base year. The company continues to target net zero emissions by 2045 and said it had expanded its supplier management framework to address labour-rights risks.

It is also working with non-government organisations on the Ebola response in Africa, where more than 10,000 protective suits are being used each day. Ansell said it had increased production to help fill supply-chain gaps and was assisting with PPE fitting and the development of infection-prevention products.