How GrainCorp Navigated Global Supply to Lift FY25 EBITDA to $308m

Robust Financial Performance Despite Global Challenges

GrainCorp Limited has delivered a solid financial performance for the fiscal year ending September 30, 2025, with underlying EBITDA climbing to $308 million, up from $268 million the previous year. This growth was driven by increased grain volumes handled across its East Coast Australia (ECA) network, which rose to 31.6 million metric tonnes, alongside record oilseed crush volumes of 557,000 tonnes. The company also saw improved contributions from its Animal Nutrition and Bulk Materials segments, reflecting successful diversification efforts.

However, the operating environment remained challenging. Strong global grain and oilseed production exerted downward pressure on prices, leading to subdued customer purchasing and tighter margins, particularly in international markets and the oilseed crush business. Victorian canola production was notably below average, impacting crush margins despite operational efficiencies.

Strategic Investments and Operational Enhancements

GrainCorp continued to invest in its infrastructure and processing capabilities, including a $7 million upgrade to the Condobolin rail facility to improve freight efficiency and an $8 million investment in mobile grain stackers at Burren Junction to enhance turnaround times. The company is also advancing a $25-30 million phased upgrade to its edible oil refining capacity at West Footscray, aiming to reduce costs and greenhouse gas emissions.

Animal Nutrition remains a growth highlight, with sales volumes increasing 83% since FY21, supported by record cattle on feed in Australia and strong demand from New Zealand. The acquisition of XFA outperformed expectations, and expansion plans are underway to meet growing feedlot demand.

Balance Sheet Strength and Capital Management

GrainCorp’s balance sheet remains robust with $321 million in core cash at year-end. The company returned $38 million to shareholders through an on-market share buy-back and paid total dividends of 48 cents per share, split evenly between ordinary and special dividends. Term debt facilities were extended to November 2028, providing financial flexibility to support ongoing investments and growth initiatives.

Notably, GrainCorp recognized a non-cash impairment of $26 million related to its 50/50 joint venture GrainsConnect Canada, which continues under strategic review. The outcome of this review is expected in the first half of FY26 and introduces some uncertainty regarding future earnings contributions from this asset.

Sustainability and Business Transformation Progress

In line with its commitment to sustainable agriculture, GrainCorp progressed its GrainCorp Next initiative, targeting low carbon emissions across the supply chain. The company has set science-based targets validated by the Science Based Targets initiative (SBTi), aiming for significant reductions in greenhouse gas emissions by 2030 and 2034. Operational improvements include energy efficiency gains, waste diversion from landfill, and sustainable packaging commitments.

The Business Transformation Program, focused on modernizing systems and unlocking efficiencies, is nearing completion of its build phase with deployment expected in the second half of FY26. This program is anticipated to deliver a $20-30 million EBITDA uplift through enhanced asset utilization, process simplification, and data-driven margin improvements.

Outlook and Market Positioning

Looking ahead, GrainCorp anticipates a strong 2025-26 production season, although the margin environment is expected to remain competitive due to persistent global supply strength. The company’s diverse customer base, integrated infrastructure, and strategic investments position it well to navigate these conditions. Earnings guidance will be provided at the upcoming AGM in February 2026.

Overall, GrainCorp’s FY25 results underscore its resilience and strategic focus amid a complex global agricultural landscape, balancing operational execution with sustainability and growth ambitions.