Sydney, June 19, 2026, 07:07 (AEST)
- Brambles ended Thursday’s trade at A$18.81, rising 0.53%. The S&P/ASX 200 fell 0.62% to 8,911.1.
- Brambles reported June 18 it bought another 662,446 shares, bringing the total repurchased so far in this buyback program to 5.54 million shares.
- Brambles lowered its forecast for FY26 constant-currency underlying profit growth to 3%-5%, down from 8%-11%, citing ongoing U.S. repair bottlenecks as its key issue.
Brambles shares looked ready to open again Friday at 9:59 a.m., after the company managed to edge up 10 cents to A$18.81 on Thursday. That move stood out as most of the Australian market sold off, with the benchmark slipping 55.2 points.
Brambles is working to repair investor trust following a profit warning in May. Shares changed hands at A$18.81, leaving them roughly 30% under their 52-week high. The buyback supports the stock with steady demand, though a real turnaround hinges on fixes to its U.S. service network.
Brambles bought 662,446 shares on June 17 for prices between A$18.63 and A$19.04, according to a June 18 filing. The outlay was A$12.44 million. Since June 1, Brambles has picked up 5.54 million shares, spending A$96.21 million, which works out to an average of about A$17.36 per share. The on-market buyback involves buying the stock through the exchange.
Brambles in May cut its FY26 sales growth outlook to 2%-3% from 3%-4%, and trimmed underlying profit growth guidance to 3%-5% from 8%-11%. These forecasts are at constant currency. The company said it expects a US$60 million earnings impact from U.S. repair constraints. Brambles left its free cash flow before dividends unchanged at US$1.0 billion to US$1.1 billion.
Brambles cited problems with subcontractor turnover, labour shortages, tougher repair standards and higher pallet demand than forecast. The company is moving pallets between sites, expanding repair operations and buying about 2 million new pallets. “Meeting customers’ needs was ‘non-negotiable’,” CEO Graham Chipchase said. Brambles expects to clear the issues by the end of the first half of FY27.
Marc Jocum, senior product and investment strategist at Global X ETFs, called it “rebuilding capacity across a fragmented network.” That is still the main investment question. Share repurchases can take up excess shares, but do not fix pallet supply or service issues. Reuters
Brambles keeps a big lead over rivals. Morningstar puts its North American pallet-pooling share at close to 45%. PECO Pallet, the nearest competitor, sits at about 10%. Bigger networks usually cut transport costs and boost availability, but the recent disruption showed scale doesn’t help if repair capacity breaks down.
But risks haven’t gone away. If repair recovery stays slow, or if pallet buys and transport costs stay elevated, that would hit cash. That could force another cut to guidance. The buyback doesn’t set a firm floor—Brambles can change, pause or stop it anytime.
Brambles faces its next key test when it reports full-year numbers on August 20. Investors want proof of higher repair throughput, improved pallet supply and a steady cost base. The FY28 margin target will also be in focus. Daily buyback filings could move the stock short term. Whether the discount closes will depend on results.
