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Ridley: FY26 profit jumps on fertiliser boost

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The Ridley Corporation Ltd (ASX: RIC) share price is in focus after the company reported underlying EBITDA jumped 61.8% to $157.8 million, and a 100% franked final dividend of 5.35 cents per share, for the year ended 30 June 2026.

What did Ridley report?

  • Underlying EBITDA: $157.8 million, up 61.8% from $97.5 million in the prior corresponding period
  • Underlying NPAT: $61.0 million, up 41.5% year on year
  • Final dividend: 5.35 cps, fully franked (up from 5.00 cps in FY25)
  • Operating cash flow: $122.4 million, up from $68.3 million last year
  • Leverage: 0.85x (target range: 1–2x)
  • Statutory NPAT: $27.6 million (after significant items)

What else do investors need to know?

Ridley completed the acquisition of Incitec Pivot Fertilisers during the year, driving a step-change in earnings and expanding its position in the Australian agricultural sector. The business now holds number one positions across fertilisers, bulk stockfeeds, and packaged feeds and ingredients.

Fertilisers contributed EBITDA of $72.2 million over nine months, meeting the higher end of expectations, while Bulk Stockfeeds and Packaged Feeds saw growth in volumes, though operational constraints temporarily affected ingredients performance.

The company maintained a solid balance sheet, with headline leverage below the 1–2x target, despite the fertiliser acquisition. Ridley’s cash generation improved, supporting a progressive dividend and ongoing investment.

What’s next for Ridley?

Ridley expects earnings growth from each division in FY27 as it continues integrating its fertilisers business, expands capacity in bulk stockfeeds, and aims for operational recovery in packaged feeds and ingredients.

Management intends to stick with its capital allocation framework and maintain a dividend payout between 50–70% of NPAT. Investment remains focused on efficiency, network upgrades, and pursuing disciplined growth opportunities. The company sees its diversified position providing resilience through changing agricultural cycles and external challenges.

Ridley share price snapshot

Over the past 12 months, Ridley shares have risen 3%, slightly outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Ridley: FY26 profit jumps on fertiliser boost 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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