SYDNEY, June 27, 2026, 09:02 (AEST)
- Brambles closed Friday at A$19.64, gaining 1.34%. Volume was 2.82 million shares, well under the 6.47 million average. Google
- The stock gained 2.3% from last Friday’s close. The S&P/ASX 200 dropped 0.73% for the week to finish at 8,764.20. Intelligent Investor
- The new US$400 million buyback equals about 36%-40% of the company’s guidance for FY26 free cash flow before dividends. That’s around 6.7 times the estimated U.S. repair cost.
Brambles Limited ASX:BXB faces a new test for local industrial investors next week as they weigh whether buybacks will keep the stock steady during the hit from the U.S. pallet-repair issue weighing on earnings.
The pallet-pooling company finished Friday at A$19.64, climbing 1.34% for the session. It advanced 2.3% from last week’s close, market data showed, while the S&P/ASX 200 dropped 0.73% over the week. Google
Friday’s action didn’t draw big volume. Shares moved on 2.82 million, well below the 6.47 million average on Google Finance. The bounce looked more like price support than strong buying. Google
Brambles’ move to add another US$400 million to its on-market buyback stands out on the cash-return side. That’s close to seven times the expected US$60 million FY26 earnings impact from capacity issues at some of its U.S. subcontracted service centers. The extra buyback equals about 36%-40% of Brambles’ US$1.0 billion to US$1.1 billion target for FY26 free cash flow before dividends.
The stock is stuck between two stories for now. Investors see a cash-flow story that keeps funding buybacks, but the operations side still hasn’t fixed the U.S. repair bottleneck.
Brambles in May trimmed its FY26 sales revenue growth guidance to 2%-3% from a range of 3%-4% at constant currency. The company also lowered its outlook for underlying profit growth, guiding for 3%-5% instead of 8%-11%. The cuts mostly reflect a projected hit to U.S. repair.
Chief Executive Graham Chipchase said the latest problems “will weigh on FY26 and 1H27 financials.” The company is sticking with its FY28 margin-expansion target.
Brambles shares are up 19.8% since closing at A$16.40 on June 3, but they haven’t clawed back the earlier losses. Brambles remains 15.7% lower in 2026 and is off 18.2% for the financial year. Friday’s finish still put the stock 27% under its 52-week high of A$26.93. Intelligent Investor
Traders are watching the stock next week for new buyback filings and updates on whether repair costs stay within the May range. Holders found the recent weekly datapoint helpful. But it still doesn’t confirm that the earnings reset is already in the price.
Brambles says it will report FY26 results on Aug. 20, with the annual meeting set for Oct. 22. Brambles
