Sydney, June 25, 2026, 09:08 AEST
- Brambles ended Wednesday at A$19.07, gaining 1.17%. The S&P/ASX 200 added 0.24%.
- Brambles’ buyback picked up 8.49 million shares as of June 22.
- A US$400 million buyback, fully used at today’s price and FX, would boost pro forma EPS by around 2.3% before timing. That’s less than half the 5.5 percentage point drop at the midpoint for profit-growth guidance.
Brambles Limited (ASX:BXB) outperformed the market by 0.93 percentage point Wednesday. The ASX cash market sat in pre-open as of the dateline, with trading set to begin just before 10 a.m. Sydney time.
Brambles’ latest buyback filing shows it bought 8,488,423 shares for A$152.42 million through June 22. Weighted average was around A$17.96 per share, which is A$1.11 below Wednesday’s closing price. Using the A$19.07 share price, those shares would now be worth A$9.5 million more than what Brambles paid. This is a measure of execution, not accounting profit.
At the Reserve Bank of Australia’s June 24 rate of US$0.6913 for each Aussie dollar, that translates to about US$105.4 million spent so far, or 26% of the authority. That leaves US$294.6 million unspent; using the same A$19.07 price, that amount would cover around 22.3 million more shares. Combined, total purchases would come to roughly 30.8 million shares, which is 2.3% of the programme’s initial share count.
The share-buyback would lift EPS about 2.3% pro forma, if earnings stay flat. Brambles trimmed its FY26 underlying profit growth target in May, dropping the midpoint to 4% from 9.5%, cutting 5.5 points. The buyback helps offset the per-share hit but doesn’t directly replace the guidance cut. How much EPS gets supported will hinge on actual buyback prices and schedule.
Brambles pointed to repair-capacity constraints at some subcontractor sites in the central and northeast US. It now expects a US$60 million hit to FY26 earnings. Brambles cut its constant-currency profit-growth outlook to 3%-5%, down from the previous 8%-11% range. “Current challenges will weigh on FY26 and 1H27 financials,” CEO Graham Chipchase said. The company kept its FY28 margin goal unchanged.
Brambles cancelled 1,943,252 shares on June 23 after spending A$37.23 million, a filing shows. Its reported issued share count dropped to 1.337 billion. More cancellations are coming as the company settles additional repurchased shares.
Yarra Capital Management’s Marcus Ryan isn’t convinced. “Offers little margin of safety” at nearly 18 times forward earnings, Ryan said. He also flagged that FY27 sales targets might be too high if repair issues drag on or slow new customers. Livewire Markets
Brambles will post its FY26 results on August 20. Investors are watching the speed of repair-capacity recovery and looking for any updates to the US$60 million earnings outlook.
