Sydney, June 13, 2026, 02:14 AEST
- Brambles closed at A$19.01 on June 12, adding 3.82%. Shares extended gains after bouncing off their early-June low.
- ASX released filings on June 12, flagging a buyback update and a notification of securities cessation. Capital returns stay in the spotlight.
- The next point for investors comes August 20, with the FY26 full-year result. Markets want to see how Brambles handles its US pallet repair issues.
Brambles Limited shares pushed higher again Friday, with the logistics stock on the ASX last at A$19.01, up A$0.70, or 3.82%. Investors kept buying after new daily disclosures tied to the company’s buyback and as Brambles continued its sharp recovery from June lows. The ASX 200 traded higher in a firm session, but Brambles’ move was notable, with the shares still trading well under last year’s highs after the profit warning in May.
Brambles did not announce fresh earnings guidance, but the company moved again on capital management with two filings early today. The ASX published Brambles’ “Update – Notification of buy-back” at 8:23 a.m. AEST, followed by a “Notification of cessation of securities” five minutes later. Buybacks help earnings per share by lowering the share count, though they don’t address operational issues. Australian Securities Exchange
Brambles is betting that the buyback can help steady nerves after its May trading update slashed FY26 guidance. The company cut its outlook for sales revenue growth to 2%–3%, down from 3%–4%, and lowered underlying profit growth to 3%–5% from 8%–11%, all at constant currency. Brambles blamed the revision mainly on an estimated US$60 million earnings hit tied to repair-capacity limits at parts of its US subcontracted service-centre network.
Brambles’ sharp fall in May came after a warning about US repair delays. Reuters said Brambles shares slid 20.2% on May 18, their biggest drop in a day since November 2002, when the company pointed to US repair bottlenecks from labor shortages, more subcontractor churn and higher demand. Marc Jocum, senior product and investment strategist at Global X ETFs, told Reuters it’s “less about a single fix,” calling it a bigger capacity issue across the whole network. Reuters
Brambles’ bull case rests on its big, still-recurring CHEP supply-chain business, steady free cash flow, and a board that keeps sending cash back. The company tightened its FY26 free cash flow guidance before dividends to US$1.0 billion–US$1.1 billion. Management said the FY26 US$400 million on-market buyback is on schedule, with another US$400 million buyback to start after that finishes. CEO Graham Chipchase said Brambles will not cut back on customer service, calling it “non-negotiable.”
Bears point to repair efforts that could drag on and outpace cost forecasts. Brambles is aiming to fix its US constraints by the end of the first half of FY27, but it’s also adding about 2 million pallets in Q4 FY26 and cautions that US plant-stock may not hit target until the end of FY28. So the stock could bounce on buybacks and bargain-hunting, but slip if service, freight costs, labor, or customer demand miss the mark.
Brambles is cheaper now after the recent drop, but it still carries risk and isn’t especially cheap. Shares have climbed 11.9% in the past week, though they’re still down 17.35% for 2026, per Intelligent Investor data. Investors see some recovery prospects, but there’s little margin for error on execution. Next up is the August 20 FY26 result. The market needs to see progress on repair capacity, pallet supply and US service standards to keep margins safe and back up the buyback-driven rally.
