Wesfarmers Limited (ASX: WES) is heading into the second half of FY26 with solid momentum. The Company has posted strong earnings growth across its largest divisions for the half year ended 31 December 2025. Revenue rose 3.1% to $24.2 billion. Net profit after tax (NPAT) climbed 9.3% to $1.6 billion. The Company declared a fully-franked interim dividend of $1.02 per share, up 7.4%.
Figure 1: Wesfarmers corporate logo [Source: Wesfarmers]
The Wesfarmers 1H26 results reflect disciplined execution across Bunnings, Kmart Group and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF). Productivity initiatives helped navigate challenging market conditions. Wesfarmers earnings 2026 report shows that the Australian retail conglomerate’s operations across diversified segments continue to benefit from scale.
Wesfarmers 1H26 Results Show Earnings Growth Across Key Metrics
- EBIT of $2,493 million, up 8.4% for the period ended 31 December 2025
- Basic earnings per share rose 9.3% to 141.4 cents per share
- Return on equity, excluding significant items, improved to 32.7%
- Free cash flows grew 35.6% to $2,745 million, supported by the sale of Coregas and BWP Management Limited
- Operating cash flows of $2,491 million, down 3.3%, largely due to higher tax paid
- Gross capital expenditure increased 4.2% to $619 million
- Net financial debt stands at $4,878 million as of 31 December 2025
- Credit ratings maintained at Moody’s A3 and S&P A-, both with stable outlooks
Figure 2: Wesfarmers 1H26 results show revenue, EBIT and NPAT growth. [Source: Wesfarmers]
Retail Giants Deliver Consistent Earnings Across All Categories
Bunnings Group remains the Company’s biggest earnings contributor. Revenue grew 4.2% to $10,713 million for the period ended 31 December 2025. EBT, excluding net property contribution, rose 5.0% to $1,389 million. Growth was recorded across all product categories, regions and customer segments. Return on capital held firm at 70.8%. The new tool shop format and 550 in-store retail media screens resonated well with customers.
Figure 3: Bunnings Group delivered revenue and earnings growth in 1H26. [Source: Wesfarmers]
Kmart Group delivered revenue of $6,307 million, up 3.3%, with EBT growing 6.1% to $683 million. The Anko private label range continued to attract strong customer demand. Monthly active app users grew to more than 1.6 million. Kmart launched a third-party marketplace with early positive trading results. Return on capital improved to 69.8%.
WesCEF Lifts Earnings on Lithium Contribution
WesCEF reported EBT of $209 million, up 18.1% for the period ended 31 December 2025. The lithium business contributed $6 million in earnings, a turnaround from a $24 million loss in 1H25. Ammonium nitrate capacity was increased by 40 ktpa to 865 ktpa.
Figure 4: Lithium prices rebounded in 1H26, supporting WesCEF earnings. [Source: Wesfarmers]
The Covalent Lithium joint venture’s LiOH refinery is producing high-quality product, though the production ramp-up has been affected by intermittent odour issues. Engineering works are expected to be completed by mid-2026. WesCEF’s 2H26 earnings are expected to be slightly ahead of 1H26, based on contracted spodumene volumes.
Health and Industrial Segments Show Improvement
- Wesfarmers Health revenue rose 8.4% to $3,276 million for the period ended 31 December 2025
- EBT increased 35.7% to $38 million
- Priceline Pharmacy’s headline network sales grew 14.4%
- Sister Club loyalty membership reached 10 million members
- Return on capital improved to 4.2%
- Infinity Group, a franchisee with 73 Priceline Pharmacy stores, encountered financial difficulties; receivers were appointed to select stores, which continue to trade normally
- Officeworks revenue grew 4.7% to $1,842 million; EBT fell 21.8% to $68 million, impacted by $15 million in transformation program costs
Wesfarmers Half-Year Results 2026: Digital and AI Strategy Gathers Pace
The Wesfarmers earnings 2026 report shows that the Company is pursuing a ‘People-First, Digitally-Enabled’ approach across all divisions. New strategic partnerships with Microsoft and Google Cloud are expected to accelerate technology adoption.
The Group’s shared data asset holds approximately 12 million customer records. OneDigital investment is expected to reach approximately $70 million for FY26. The Company operates over 1,900 stores across Australia and New Zealand, with Group online retail sales of approximately $1.8 billion in 1H26.
Shareholder Returns and Capital Management
- Capital management distribution of $1.50 per share paid in December 2025, comprising a capital return of $1.10 per share and a fully-franked special dividend of $0.40 per share
- Fully-franked ordinary interim dividend of $1.02 per share declared for the half year ended 31 December 2025
- Dividend record date is 25 February 2026; payable 31 March 2026
- Committed unused bank facilities of approximately $1.3 billion remain available
- Debt to EBITDA at 1.9x as on 31 December 2025
- Weighted average cost of debt improved to 3.56%, down from 3.92% in 1H25
- Expected net capital expenditure of $1,000 million to $1,300 million for FY26, excluding BPI sale proceeds
Figure 5: Wesfarmers maintained consistent shareholder distributions in FY25 and 1H26. [Source: Wesfarmers]
Share Price Performance
Wesfarmers (ASX: WES) shares are currently trading at $85.530 per share. The Company’s market capitalisation stands at $101.33 billion. The 52-week range is $67.700 to $95.175 per share.
Figure 6: Wesfarmers (ASX: WES) share price over the past year. [Source: ASX]
Wesfarmers 1H26 Results: Group Well Positioned for Second Half
After Wesfarmers earnings 2026 report, the Company enters 2H26 with broad-based momentum. Bunnings and Kmart continue to benefit from everyday low price models and strong value credentials. Australian consumer demand remains solid, though cost-of-living pressures are being felt unevenly.
The Wesfarmers half-year results 2026 demonstrate the Company’s capacity to grow earnings through challenging conditions. Managing Director Rob Scott has emphasised a continued focus on productivity, digital acceleration and long-term shareholder value.
Frequently Asked Questions
Q1. What were the key Wesfarmers 1H26 results highlights?
Ans. Wesfarmers reported revenue of $24.2 billion, up 3.1%, NPAT of $1.6 billion, up 9.3%, and a fully-franked interim dividend of $1.02 per share, up 7.4%, for the half year ended 31 December 2025.
Q2. Which divisions drove the Wesfarmers half-year results 2026?
Ans. Bunnings Group, Kmart Group and WesCEF were the three strongest contributors. Bunnings EBT rose 5.0% to $1,389 million, and Kmart EBT grew 6.1% to $683 million.
Q3. What is happening with the Covalent Lithium refinery?
Ans. The LiOH refinery is producing high-quality product, but the production ramp-up has been delayed due to intermittent odour issues. Engineering works are expected to be completed by mid-2026.
Q4. What is the Wesfarmers interim dividend for 2026?
Ans. The Company declared a fully-franked ordinary interim dividend of $1.02 per share, payable on 31 March 2026, with a record date of 25 February 2026.
