ASX 200 stock crashes 12% on half-year results

GrainCorp Ltd (ASX: GNC) shares are crashing on Thursday morning.

At the time of writing, the ASX 200 stock is down 12% to $5.45 following the release of its half-year results.

ASX 200 stock crashes on results

Investors have been selling the agribusiness and processing company’s shares after it reported a softer first-half result.

For the six months ended 31 March 2026, GrainCorp reported underlying EBITDA of $136 million, down 33% from $202 million in the prior corresponding period.

In Agribusiness, EBITDA fell 26% to $104 million from $141 million a year earlier. This reflected weaker conditions in East Coast Australia, where total grain handled was 26.5 million tonnes, compared with 29.5 million tonnes a year ago.

The ASX 200 stock said this was due to a lower carry-in position and reduced grower selling activity, which weighed on receivals and left margins at multi-year lows.

There were some positives in the division. Non-grain port volumes increased to 1.5 million tonnes from 1.2 million tonnes, supporting better utilisation of port infrastructure. GrainCorp also reported an improved result from its International business, supported by record Western Australian grain production.

Nutrition and Energy EBITDA was $46 million, down 39% from $75 million in the prior corresponding period.

Human Nutrition performed solidly, with processing sites crushing 277,000 tonnes of canola seed, but edible oils sales volumes were lower due to softer customer demand. Agri-energy sales volumes and margins were also lower, impacted by uncertainty in US biofuel policy. This was partly offset by record Animal Nutrition sales of 390,000 tonnes.

This ultimately led to underlying net profit after tax declining by over half to $33 million from $69 million. Statutory net profit after tax was $5 million, down from $58 million.

Despite the profit decline, the ASX 200 stock’s board elected to maintain its fully franked interim dividend at 14 cents per share.

Management commentary

Commenting on the half, GrainCorp’s managing director and CEO, Robert Spurway, said:

GrainCorp’s 1H26 result reflects a disciplined performance in a challenging global grain market. Oversupply of grain and associated low pricing have compressed margins across the supply chain and reduced grower selling activity, limiting available volumes and increasing competition for grain brought to market.

Against this backdrop, we are tightly focused on cost management, capital discipline and portfolio optimisation. We have maintained strong execution across our network and continue to diversify our business.

Spurway also revealed that the company hasn’t been meaningfully impacted by the Middle East conflict. He added:

We have experienced minimal impact from the Middle East conflict to date, with our supply chain continuing to operate as normal. GrainCorp’s resilient business model, integrated supply chain and strong balance sheet underpin our demonstrated ability to consistently navigate commodity cycles and capitalise on opportunities to deliver long-term value for shareholders.

Outlook

GrainCorp reaffirmed its FY 2026 earnings guidance of underlying EBITDA between $200 million and $240 million and underlying net profit after tax between $20 million and $50 million.

The post ASX 200 stock crashes 12% on half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.