Ansell FY26 Adjusted EPS US148.6c, Guides US158-170c FY27

Ansell (ASX:ANN) reported FY26 sales of US$2,140.2 million, up 6.8% on a reported basis and 5.0% on an organic constant currency basis, which the company said improved to 5.7% on an adjusted basis after excluding sales in FY25 and FY26 that benefited from temporary order pattern favourability. Adjusted EBIT, stated before Significant Items, was US$321.9 million, up 14.1% on a reported basis and 14.9% on an organic constant currency basis, at an adjusted EBIT margin of 15.0%, 90 basis points higher than FY25 on a reported basis and 140 basis points higher on an organic constant currency basis. Adjusted net profit after tax was US$212.3 million and adjusted earnings per share were US148.6 cents, up 17.8%, which the company said was in the upper half of its guidance range and which included a non-recurring net benefit of US3.3 cents equivalent to EBIT of US$6.2 million. Statutory EBIT was US$320.5 million, statutory net profit after tax was US$208.6 million, up 105.3%, and statutory earnings per share were US146.0 cents. All amounts in the release are reported in US dollars unless otherwise specified.

Industrial segment sales were US$947.3 million, up 3.3% on an organic constant currency basis and 5.4% on a reported basis, with adjusted EBIT of US$170.6 million, up 7.9% on an organic constant currency basis. Healthcare segment sales were US$1,192.9 million, up 6.4% on an organic constant currency basis and 8.0% on a reported basis, with adjusted EBIT of US$170.7 million, up 23.5% on an organic constant currency basis; within that, Cleanroom sales grew 10.0% on an adjusted basis. Operating cash flow was US$270.1 million, up 156.3%, and cash conversion, which the company defines as net receipts from operations as a percentage of adjusted EBITDA excluding Significant Items, was 113%. The growth in operating cash flow funded share buybacks totalling US$118.4 million and a US$52.3 million reduction in net debt, leaving net debt to adjusted EBITDA at 1.3x. The Board determined a final unfranked dividend of US41.5 cents per share at a 50% payout ratio, taking the full year dividend to US68.1 cents at a 45% payout ratio, and Ansell said it will continue its existing US$200 million on-market share buyback program in FY27, of which US$118.4 million was completed in FY26. For FY27 the company expects adjusted EPS, stated before Significant Items and excluding the effects of the on-market share buyback, of US158 cents to US170 cents, with assumptions including a foreign exchange benefit of about US$9 million, net interest cost of about US$43 million, a book tax rate of 23.5% to 24.5%, one-off pre-tax costs of about US$15 million and capital expenditure of US$45 million to US$55 million. Ansell said it has applied for refunds on tariffs paid before the February US Supreme Court ruling, with about US$12 million received in July, and that the timeline for recovery of the remaining amount is uncertain.