Schaffer delivers $22.2m FY26 profit as Jandakot revaluation and Automotive Leather rebound headline the year
In its August 2026 FY26 results presentation, Schaffer Corporation (ASX:SFC) recorded a statutory net profit after tax (NPAT) of $22.2m, down modestly from $24.3m in FY25, while holding fully franked total dividends steady at $0.90 per share. The standout driver was a $10.2m net unrealised after-tax gain on the South Connect Jandakot land revaluation, complemented by a strong second-half recovery in Automotive Leather. The presentation also detailed a key value metric: the pre-tax net equity value of the Group’s investments rose to $240.9m, or $17.76 per share, from $227.3m ($16.73/share) a year earlier.
FY26 results at a glance
- Statutory NPAT: $22.2m (down $2.1m on FY25)
- Total revenue: $202.7m (FY25: $229.7m)
- EPS: $1.63 (FY25: $1.78)
- Total fully franked dividends: $0.90/share, with a final dividend of $0.45, record date 4 September 2026, payable 18 September 2026
- Pre-tax net equity value: $240.9m / $17.76 per share
The table below summarises segment performance across the diversified model spanning manufacturing, property and investments.
| Segment | FY26 Revenue ($m) | FY26 NPAT ($m) | FY25 NPAT ($m) | Change ($m) |
|---|---|---|---|---|
| Automotive Leather | 176.3 | 11.8 | 16.3 | -4.5 |
| Delta | 13.9 | -1.3 | 4.9 | -6.2 |
| Group Investments | 11.6 | 4.5 | 3.3 | +1.2 |
| South Connect Jandakot | 0.9 | 10.6 | 3.0 | +7.6 |
| Corporate | – | -3.4 | -3.2 | -0.2 |
| Statutory NPAT | 202.7 | 22.2 | 24.3 | -2.1 |
When big ASX news breaks, our subscribers know first
Automotive Leather rebounds strongly in the second half
The Automotive Leather division delivered a marked improvement across the year, with the second half more than offsetting a subdued opening period. The presentation detailed 2H26 sales rising 17% to $95.2m (1H26: $81.2m), while second-half profit climbed 57% to $7.2m (1H26: $4.6m) as volumes recovered and production efficiency improved.
For the full year, the segment recorded NPAT of $11.8m (FY25: $16.3m), representing SFC’s 83.17% share, with the remaining 16.83% attributable to minority interests.
Management attributed the softer first half largely to a cyber-attack on Jaguar Land Rover (JLR), which temporarily halted JLR’s production for around two months. JLR sales improved from around November 2025 and continued at normal levels through the second half. First-half profit was also affected by new program launches carrying higher design complexity, with production processes since stabilising.
The second-half result absorbed net unfavourable currency movements as the Australian dollar strengthened against the Euro. During the period, multiple automation projects commenced, supporting production efficiencies, with the division indicating it will continue investing in automation.
New program wins point to FY27 momentum
Automotive Leather secured a new program in Europe alongside two new China programs, which management indicated bode well for FY27:
- New Europe program with Jaguar Land Rover, expected to launch towards the end of 1H27
- Chery (China), expected to launch early in 1H27
- Mercedes (China), expected to launch early in 1H27
Management guidance noted that 1H27 profitability should be “at least similar to 2H26,” supported by the new program launches and improved production efficiencies.
South Connect Jandakot revaluation drives the standout result
The South Connect Jandakot segment delivered the year’s most striking value contribution, recording NPAT of $10.6m (FY25: $3.0m). This included a $10.2m net unrealised after-tax gain on land value plus $0.4m of rental income. Importantly, the revaluation gain is non-cash and unrealised, reflecting an accounting increase in asset value rather than a cash profit.
The estate’s “as is” valuation rose to $121.4m (June 2025: $100.2m), a $21.2m increase comprising a $14.6m land revaluation and $6.6m of capital expenditure. Pre-tax net equity value increased to $103.1m (June 2025: $88m), with debt utilised of $18.3m (June 2025: $12.2m).
First warehouse under construction
Construction of the estate’s first building commenced in February 2026, marking a significant development milestone:
- First warehouse: ~13,500 sqm across three tenancies on a build-to-lease basis; completion expected in Q1 calendar 2027
- Total first-warehouse cost expected to be around $22m, including shared fire tanks and roadways
- A 1.75ha asphalt hardstand also underway, costing around $3.5m, with completion expected during 1H27
- Both developments funded by debt
The estate features around 34 hectares of net developable area, which could ultimately equate to over 150,000 sqm of gross leasable area. Management noted Perth is currently experiencing historically low industrial vacancy rates, with very few sites of over 30ha available in the metropolitan warehouse sector.
Delta faces tough conditions but eyes a FY27 return to profit
The Delta precast and prestressed concrete division recorded revenue of $13.9m (FY25: $31.6m) and a segment NPAT loss of ($1.3m), compared with a $4.9m profit in FY25. Management attributed the result to a tough industry environment, citing limited large-scale infrastructure projects in Western Australia alongside subdued private sector work, increased competition and lower margins.
Looking ahead, the presentation highlighted a strong FY27 order book, with management guidance indicating Delta should return to profitability in 1H27.
Understanding Schaffer’s diversified investment model
Schaffer Corporation is unusual among ASX-listed manufacturers in that it also holds a substantial portfolio of property and equity investments alongside its operating businesses. This combination means the company’s value derives from both manufacturing earnings and the underlying worth of its investment assets.
A useful measure in this context is “pre-tax net equity value,” which represents the market value of the Group’s investments less associated debt. At $17.76 per share, this figure provides a form of asset backing that helps investors gauge the company’s underlying value beyond its trading earnings.
The presentation detailed a total investment portfolio pre-tax net equity value of $240.9m, of which approximately 75% ($180m) is property, the largest single component being Jandakot at $103.1m. A further 19% ($46m) is invested in cash and highly liquid equities.
Over the last nine years, pre-tax net equity value has increased by +$145m, while SFC has paid shareholders a cumulative $88m in fully franked dividends and bought back $9m of shares. This track record underpins the asset-backing thesis supporting the share price.
A consistent dividend track record
The Board declared a fully franked final dividend of $0.45 per share, matching the prior year’s final dividend and taking total FY26 dividends to 90 cents. This marks the sixth consecutive year (FY21 to FY26) at that level, up from just 26 cents in FY17.
From the FY26 results presentation
“Pre-Tax Net Equity Value¹ increased to $240.9m (June 2025: $227.3m) or $17.76/share (June 2025: $16.73/share)”
Group Investments and balance sheet strength
Group Investments performed well, generating NPAT of $4.5m, up 38% on FY25’s $3.3m. Equity investments delivered strong returns overall, offset by a decline in the value of the Group’s US multi-family property investments. SFC’s managed equity funds ended the year with combined funds under management of $28m (June 2025: $26m).
Group net debt rose to $40.4m (June 2025: $32.9m), with the presentation noting that 0% of segment debt is recourse to SFC across all divisions. The modest increase reflects funding for growth, including Jandakot capital expenditure, dividends and share buybacks.
Outlook: cautious optimism into 1H27
Management flagged that high levels of global geopolitical and economic uncertainty warrant continued caution, while outlining a broadly constructive view for the first half of FY27:
- Automotive Leather: 1H27 profit expected to be “at least similar to 2H26,” supported by new program launches and efficiency gains
- Delta: a return to positive profit anticipated in 1H27 on the strength of a large order book
- Group Investments: period revaluations may lead to profit volatility, both up and down
The presentation reinforced Schaffer’s investment case: a diversified earnings base across manufacturing, property and investments, a growing asset backing of $17.76 per share, and a consistent record of fully franked dividends.
Stay Ahead on ASX Consumer & Manufacturing News
Big News Blast delivers FREE breaking ASX announcements straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ active subscribers who never miss a market-moving update. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.