On the back of a $39.5 million statutory profit after tax from first half-2026 Elders has declared an interim dividend
Elders delivered a strong first half earnings result for the six months to 31 March 2026, driven by optimisation of improved seasonal conditions, as well as earnings from the Delta Agribusiness acquisition.
This result has positioned directors in favour of investors especially when they determined to pay an interim dividend of 18.0 cents per share, 100% franked.
Operational highlights through the six-month earning period included a new divisional model being fully implemented and significant progress made on Systems Modernisation (SysMod). The third Wave of SysMod (Livestock) went live and detailed design for the fourth and final Wave was completed.
During this first half, Elders also announced the sale of the Killara Feedlot. Pending approvals and completion in the second half-year, the business is classified as a current asset held for sale and a discontinued operation. Killara’s financial results are excluded from underlying earnings.
In addition, considerable progress was made to fast-track Delta Agribusiness synergies into Elders operation, with initial benefits more weighted to the second half of FY26, while full operational benefits to be realised over three years.
Elders is well placed to manage fertiliser disruption through its back-to-back purchasing model and diversified suppliers. While elevated diesel prices remain a challenge for the industry, linked to the duration of USA/Israel attack on Iran in the Middle East.
Elders has also dedicated programs to continually improving its safety performance. For the half-2026, Elders experienced one Lost Time Injury and a Total Recordable Injury Frequency Rate of 3.5, down from 6.0 last year.
With so many divisions operating under the Elders umbrella, a closer look reveals how the various divisions are faring.
Divisional performance
Elders Crop Protection
Performed well with EBIT increases compared to last year across all businesses, but mainly Titan Ag, due to improved procurement of raw materials. However staff costs increased, due to succession planning
Australian Independent Rural Retailers (AIRR)
The division EBIT was slightly down on last year, with temporary staff cost expenses more than offsetting sales uplift, gross margin percentage improvements and warehouse efficiencies
Elders Rural Services
This is the big one and fortunately EBIT was favourable across most products and services, with livestock prices driving the majority of upside profits. On the down side were additional costs bought about by acquisitions, as well as expansion in the Elders Finance broker network
Delta Agribusiness
This once in opposition rural store chain was acquired by elders in November 2025 for a combination of cash and shares valued at $475 million, see a report at the time here. In an effort to get a return on the investment the division has reported an EBIT of $10.4 million in its first five months under Elders’ ownership, with nervous directors noting earnings are weighted to the second half
Elders Real Estate
EBIT is driven mostly by growth in residential turnover and property management, reflecting both organic and acquisitive growth
Corporate Services and Other Costs
There were increases here mostly relating to higher IT costs, following the partial transition of Systems Modernisation expenses to ongoing business, and the costs associated to run and support dual platforms until legacy AS400 use ceases in 2027.
Full year FY26 financial Outlook
Elders’ directors indicate the business is well positioned for the second half, with first year earnings contributions from Delta Agribusiness kicking in, alongside the incremental realisation of Systems Modernisation benefits and Delta Agribusiness synergies.
Further benefit is expected from renewed operational focus and accountability under the divisional model, while the business continues to invest in strategic and transformational initiatives and more current tools such as AI agents.
However there is a footnote that elevated diesel prices remain a risk to Elders cost base in the second half, although current prices have eased from the highs experienced at the time of the USA/Israel attack on Iran in early March 2026.
Key financial metrics are expected to improve in the second half as earnings from the recent Delta Agribusiness acquisition are progressively reflected over the rolling 12-month period, and proceeds of the Killara Feedlot divestment anticipated to reduce net debt, leverage and interest expense.
Word from the MD/CEO
“The first half of FY26 has been eventful for Elders, with Delta Agribusiness welcomed into the Elders Group and seasonal improvements driving optimism for the winter crop,” Elders Managing Director and Chief Executive Officer, Mark Allison confirms.
“Our decision to implement a new divisional structure in FY26 is already reaping benefits through improved alignment and efficiency gains. Elders’ strong management has proven effective in allowing us to optimise the season and set ourselves up for a solid second half.
“International events have caused price volatility in fuel and fertiliser, creating challenges for our supply chain in the first half. Elders’ strong supply relationships, combined with an adept agronomy network for timely advice to growers, has allowed us to manage demand and ensure growers are equipped for the season ahead.”
CEO succession
During the first half-2026, René Dedoncker was appointed to succeed Mark Allison as CEO, commencing 1 October 2026. Elders is confident René Dedoncker’s experience and leadership will support Elders’ continued growth strategy, with Mark Allison remaining during the transition to support René Dedoncker’s onboarding.
