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GrainCorp keeps guidance steady as transformation delivers gains

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Farmer holding grains in his hands.

The GrainCorp Ltd (ASX: GNC) share price is in focus today as the company reaffirmed its FY26 guidance, forecasting underlying EBITDA mid-range at $200–240 million and underlying NPAT between $20–50 million, including $5 million in restructuring costs.

What did GrainCorp report?

  • Reconfirmed FY26 underlying EBITDA guidance at around $200–240 million
  • FY26 underlying NPAT expected within $20–50 million range
  • Business Transformation Program to deliver $12 million run-rate benefits by end FY26
  • One-off restructuring costs of $5 million incurred in FY26
  • System transformation spend unchanged for 2H26 at $25 million; FY27 updated to $30–35 million

What else do investors need to know?

GrainCorp’s Business Transformation Program is on track, targeting a $20–30 million uplift in through-the-cycle EBITDA by FY28. Operating model changes across Agribusiness, affecting around 80 roles, are aimed at improving decision-making and execution across its east coast network.

Investment continues in GrainCorp’s systems transformation, particularly in the Nutrition and Energy segment, with deployment for Release 1 extended to post-harvest in 2Q CY27. The company maintains a disciplined balance sheet and has deferred further systems upgrades in Agribusiness to focus on operating improvements.

What did GrainCorp management say?

Managing Director and CEO Robert Spurway said:

We have completed major changes to our operating model and remain focused on driving efficiency and best-in-class financial outcomes.

What’s next for GrainCorp?

GrainCorp will continue to monitor conditions in the 2026–27 winter crop, especially as New South Wales and Victoria see favourable growing weather, and Queensland faces drier conditions. The latest ABARES report forecasts a 12% lift in east coast winter crop production from June, providing potential upside.

Management will also keep an eye on new export opportunities, thanks to recent increases in global commodity prices. GrainCorp’s refreshed structure and strong balance sheet are intended to position the company to make the most of market opportunities as they arise.

GrainCorp share price snapshot

Over the past 12 months, GrainCorp shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

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The post GrainCorp keeps guidance steady as transformation delivers gains 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.

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