CHEP Owner Brambles Lifts Annual Profit 4% Amid Repair Constraints

By Stuart Condie

SYDNEY--Global pallet supplier Brambles reported a 4% rise in annual profit, meeting its downgraded guidance as it stayed on track to resolve the U.S. repair constraints that prompted a historic selloff of its stock.

Australia-listed Brambles, which leases out pallets under the CHEP brand, on Thursday reported an annual underlying profit of $1.49 billion, up by 4% on the prior year once currency moves were stripped out.

Sales revenue for the 12 months through June rose by 2% to $7.04 billion, also on a constant-currency basis.

Brambles had initially guided for an 8% to 11% rise in underlying profit, but slashed its outlook in May to between 3% and 5% on a spike in costs from unexpected capacity constraints at subcontracted pallet service centers in parts of the U.S.

The downgrade prompted the stock's largest one-day drop since 2002. Several formerly bullish analysts cut their rating and the consensus forecast for annual underlying profit fell from $1.565 billion to $1.48 billion ahead of Thurday's result announcement.

Analysts had been looking for sales of $7.04 billion, according to data compiled by Visible Alpha.

Brambles raised its dividend to $0.2315 from $0.2083.

It did not add to the $400 million buyback extension announced in May. It expects to complete the current on-market buyback in the current fiscal year.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

August 19, 2026 18:39 ET (22:39 GMT)