Elders Posts $143.5M EBIT, 137% Cash Conversion in FY25

Strong Financial Performance Despite Mixed Conditions

Elders Limited has delivered a solid financial performance for the full year ended September 30, 2025, with underlying EBIT rising 12% to $143.5 million. This growth was supported by robust livestock prices and real estate market expansion, offsetting the impact of dry conditions in key agricultural regions such as South Australia and Victoria. The company maintained a stable return on capital at 11.3%, reflecting resilience through agricultural cycles and ongoing investments in transformation projects.

Cash conversion improved significantly to 137%, well above the company’s 90% target, highlighting strong operational cash flow management. Despite a 36% reduction in net debt due to the Delta Agribusiness acquisition and other balance sheet initiatives, Elders is on track to return leverage ratios to target levels by FY26, underpinning financial discipline and flexibility.

Strategic Expansion and Systems Modernisation

The acquisition of Delta Agribusiness, completed in November 2025, has broadened Elders’ geographic footprint and product offering, particularly in New South Wales, northwest Victoria, South Australia, and Western Australia. This move complements Elders’ existing portfolio and is expected to accelerate backward integration synergies, targeting a return on capital above 15% post-synergies.

Parallel to expansion, Elders is progressing through its multi-wave Systems Modernisation program, with Wave 2 (Retail) completed across all states and Wave 3 (Livestock) in user acceptance testing, scheduled for rollout in early 2026. These upgrades aim to enhance customer experience, streamline operations, and improve reporting capabilities, with anticipated return on capital benefits exceeding 15% from FY26 onwards.

Sustainability and Community Commitment

Elders continues to embed sustainability into its core strategy, committing to a 50% reduction in Scope 1 and 2 greenhouse gas emissions intensity by 2030 and achieving 100% renewable electricity use at Australian sites by 2025. The company has also strengthened its environmental management systems, engaged in carbon farming initiatives, and trialed electric vehicles to reduce its environmental footprint.

Community engagement remains a priority, with significant sponsorships, donations, and partnerships such as the Agripathways scholarship program supporting First Nations education and ongoing support for the Royal Flying Doctors Service. Safety performance has improved markedly, with a Lost Time Injury Frequency Rate well below industry benchmarks, reflecting Elders’ focus on leadership and risk management.

Outlook and Growth Drivers

Looking ahead to FY26, Elders anticipates continued growth across its divisions, buoyed by the full-year contribution from Delta Agribusiness, improved seasonal conditions, and sustained demand in financial and real estate services. The company plans to maintain cost growth below inflation, excluding acquisition and transformation expenses, while driving operational efficiencies and expanding its product portfolio.

With a clear strategic roadmap under its Eight Point Plan, Elders aims for 5-10% EBIT and EPS growth through the cycles, targeting a 15% return on capital and delivering consistent dividends. The company’s focus on innovation, sustainability, and customer-centric services positions it well to navigate the complexities of the agricultural sector and capitalize on emerging opportunities.