GrainCorp shares: 1H26 profit drops but guidance stands

The GrainCorp Ltd (ASX: GNC) share price is in focus today after the company reported underlying EBITDA of $136 million and net profit after tax of $5 million for the half-year ending 31 March 2026.

What did GrainCorp report?

• Underlying EBITDA: $136 million (down from $202 million in 1H25)
• Net Profit After Tax (NPAT): $5 million (down from $58 million in 1H25)
• Underlying NPAT: $33 million (vs $69 million in 1H25)
• Core cash: $163 million (vs $321 million at FY25)
• Interim ordinary dividend: 14 cents per share, fully franked
• FY26 earnings guidance reaffirmed: Underlying EBITDA $200-240 million, Underlying NPAT $20-50 million

What else do investors need to know?

GrainCorp’s agribusiness segment saw EBITDA fall to $104 million, with softer domestic and export grain volumes as oversupply and low prices dampened grower selling activity. In East Coast Australia, total grain handled slipped to 26.5 million metric tonnes.

The nutrition and energy division reported weaker earnings, largely from lower edible oils demand and challenging global biofuel policy. Animal Nutrition, however, achieved record sales of 390,000 tonnes. GrainCorp closed the period with a strong balance sheet, maintaining capital management flexibility and an ongoing share buy-back extension.

In portfolio moves, GrainCorp is progressing the exit from its GrainsConnect Canada joint venture, with completion expected in the second half of 2026. The company is also investing in processing upgrades and animal nutrition capacity to support long-term growth.

What’s next for GrainCorp?

GrainCorp reaffirmed its FY26 underlying EBITDA and NPAT forecasts, expecting conditions to gradually improve. The company has flagged good soil moisture across key areas in Victoria and southern NSW, though some northern regions face mixed weather.

Looking ahead, GrainCorp is focused on supply chain execution, asset optimisation, and continued progress on its transformation program. The business is also investing in renewable fuels supply chains, positioning itself to benefit from anticipated government support for low-carbon fuel production.

GrainCorp share price snapshot

Over the past 12 months, GrainCorp shares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post GrainCorp shares: 1H26 profit drops but guidance stands appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.