Elders Limited’s shares slide, while delivering resilient earnings through agricultural cycles

Elders Limited achieved mixed half year results as rising costs and operational risks continued creating concern

Elders Limited (ASX: ELD) 

on 18 May 2026 shared its FY26 half year result report. The company achieved underlying EBIT of $76.6 million and statutory profit after tax of $39.5 million. An interim dividend of 18.0 cents per share was declared and fully franked. Despite the profit growth, several risks remain for the second half. Higher diesel prices linked to conflict in the Middle East continue to pressure operating costs across the industry. The company also said fertiliser price disruption created supply chain difficulties during the half. Rising IT expenses and ongoing spending on system upgrades also increased costs. These pressures may affect future margins and investor confidence.

Asset Sale 

On 26 February 2026 the company announced the planned sale of the Killara Feedlot business. The transaction still requires approval from FIRB and ACCC before completion in the second half of FY26. Because of the proposed divestment the business is now classified as an asset held for sale and a discontinued operation. 

Financial results from Killara were removed from underlying earnings for both current and prior periods. Such changes can create uncertainty for investors because earnings comparisons become harder to track. 

The company also completed a major divisional restructure from 1 October 2025. While intended to improve efficiency, restructuring often increases short term operational risk and transition costs.

Cost Pressure

Several business units faced margin pressure despite revenue improvement. AIRR recorded EBIT slightly below last year because temporary employee cost growth reduced gains from stronger sales and warehouse efficiencies. 

Corporate Services and Other Costs also increased due to higher technology spending and support costs for running dual systems until older platforms are removed in 2027. 
Elders Rural Services benefited from stronger livestock prices, though acquisition related expenses and expansion in the finance broker network added pressure to costs. 

Delta Agribusiness contributed $10.4 million EBIT after being acquired in November 2025, but earnings are expected to be weighted more toward the second half which may delay stronger financial improvement.

FY26 Outlook

The company expects second half improvement from Delta Agribusiness contributions and system modernisation benefits. 
Elevated fuel prices remain a challenge and management warned that ongoing international events may continue to create volatility in fertiliser and diesel markets. 

The business is also carrying higher interest and technology related costs while integrating acquisitions and completing transformation programs. Although debt reduction is expected after the Killara Feedlot sale, investors may remain cautious because many expected benefits are still dependent on future execution and external conditions.

(Source: Company Announcements)