Wesfarmers FY26 Profit Surge
Wesfarmers posts $2.87 billion FY26 profit, lifting its dividend as retail divisions drive growth.
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Key Points
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Spodumene concentrate production reached 209 kilotonnes in FY26, underscoring Wesfarmers' exposure to lithium through WesCEF.
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In December 2025 Wesfarmers paid a capital management distribution of $1.50 per share, comprising a $1.10 capital return and a $0.40 fully-franked special dividend.
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Officeworks earnings declined 22.2% in FY26, reflecting about $40 million of one-off transformation costs including an ERP transition.
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Blackwoods and Workwear Group were moved into the Bunnings Group from 1 July 2026 to strengthen the commercial offer.
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Wesfarmers reported a roughly 22% year-on-year reduction in Scope 1 and 2 emissions as part of its sustainability push.
Wesfarmers posted a statutory net profit after tax of $2.87 billion for FY26, with strong earnings from Bunnings, Kmart and its lithium division WesCEF Grafa. The retail giant raised its fully franked ordinary dividend by 7.8% to $2.22 per share, signaling confidence in sustained performance StockWireX.
Excluding significant items, net profit grew 8.3% and revenue climbed to $47.27 billion BusinessNewsAustralia. The group credited disciplined cost control and productivity gains while navigating one-off challenges in the Officeworks division StockWireX.
Bunnings and Kmart Drive Earnings Growth
Wesfarmers' core retail brands delivered solid results in FY26 Grafa. Bunnings powered earnings growth through disciplined cost control and expanded commercial operations. Kmart also contributed to the upside, demonstrating resilience across the group's consumer-facing portfolio BusinessNewsAustralia.
Lithium Turnaround Offsets Officeworks Headwinds
WesCEF's lithium operations delivered a turnaround, with spodumene concentrate production reaching 209 kilotonnes in FY26 StockWireX. This strong performance helped offset weakness in Officeworks, where earnings fell 22.2% due to roughly $40 million in one-off transformation costs tied to an ERP system transition StockWireX.
Bunnings Expands Into Commercial Services
Wesfarmers is consolidating its commercial divisions to strengthen market position. From 1 July 2026, Blackwoods and Workwear Group moved into the Bunnings Group StockWireX. This restructure aims to deepen Bunnings' commercial offerings and boost cross-selling opportunities across the combined business StockWireX.
Emissions Fall 22% as Sustainability Pushes Forward
Wesfarmers reported a roughly 22% year-on-year reduction in Scope 1 and 2 emissions as part of its sustainability strategy Grafa. The company is investing in digital upgrades and AI-powered customer assistance tools to drive long-term growth while managing environmental impact StockWireX.
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