Ridley delivers step-change FY26 earnings as Fertilisers acquisition drives 62% EBITDA jump
Ridley Corporation (ASX: RIC) reported underlying EBITDA of $157.8m for the financial year ended June 2026, up 61.8% on the prior corresponding period (pcp), driven by the transformative acquisition of Incitec Pivot Fertilisers (IPF). The result was detailed in the company’s FY26 full-year results presentation, delivered by Managing Director and CEO Quinton Hildebrand and Chief Financial Officer Chris Opperman.
Alongside the earnings step-change, the board determined a final fully franked dividend of 5.35cps, up from 5.00cps in the prior year.
Management framed FY26 as a year of strategic transformation, positioning Ridley as a more diversified and resilient business operating three segments, each holding the #1 market position in its respective Australian market.
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FY26 financial highlights at a glance
Underlying earnings grew strongly across the period, though statutory net profit after tax (NPAT) declined due to one-off acquisition and impairment items. The headline metrics from the presentation are summarised below.
| Metric | FY26 | Change vs pcp |
|---|---|---|
| EBITDA (underlying) | $157.8m | +61.8% |
| NPAT (underlying) | $61.0m | +41.5% |
| Operating cash flow | $122.4m | from $68.3m |
| EPS (underlying) | 16.3cps | +18% |
| Final dividend (100% franked) | 5.35cps | from 5.00cps |
| Leverage | 0.85x | from 0.60x |
The distinction between underlying and statutory results is important. Statutory NPAT came in at $27.6m, down from $43.3m in the pcp, reduced by $33.5m of individually significant items (post-tax) tied largely to the IPF acquisition and a non-cash impairment. Excluding these items, underlying NPAT grew to $61.0m, reflecting the genuine operational lift the acquisition delivered.
Segment performance: three #1 businesses
Following the IPF acquisition, Ridley now operates three segments, each described as the #1 player in its Australian market.
Fertilisers — new engine of growth
The Fertilisers segment contributed EBITDA of $72.2m from nine months’ trading since the acquisition completed on 30 September 2025, delivering an EBITDA return on funds employed (ROFE) of 20% over the nine-month period.
Higher margins reflected rising global fertiliser prices linked to Middle East conflict, partially offset by lower-than-expected volumes as elevated prices squeezed farm economics. A business restructure and the implementation of a regional distribution model delivered cost savings.
Bulk Stockfeeds — market share gains
Bulk Stockfeeds recorded EBITDA of $50.3m, up 5.2% on pcp. Volume growth was led by Monogastric (+7%) and Ruminant (+4%), excluding the divested Wasleys Feedmill, which was sold on 30 June 2025. This growth more than offset the $3.5m EBITDA contribution Wasleys made in the prior year.
Packaged Feeds & Ingredients — temporary headwinds
Packaged Feeds & Ingredients delivered EBITDA of $51.6m, down 17.9% on pcp. Management attributed the decline to capacity constraints at Maroota (one process water dam inoperable), commissioning delays at Timaru, and ovine supply constraints affecting sales volumes.
A positive offset came from packaged dogfood volume growth of +33%, driven by existing customers, new private label business and improved throughput at the extrusion plant. The presentation framed these headwinds as temporary and recoverable rather than structural.
What the IPF acquisition means for investors
The acquisition of Incitec Pivot Fertilisers marks a strategic pivot for Ridley. Broadening the portfolio reduces reliance on any single agricultural cycle, with each segment now holding a #1 market position. Management outlined that this diversification adds resilience against weather extremes, biosecurity threats and commodity cycles.
A notable feature of the transaction was the recognition of a Gain on Bargain Purchase. Ridley finalised this gain at $37.5m, revised down from the provisional $55.9m estimate recognised at the first-half mark, primarily due to finalisation of land fair values, associated environmental provisions and tax impacts.
The acquisition step-changed Ridley’s earnings base. Over five years, underlying EBITDA has climbed from $80.1m in FY22 to $157.8m in FY26, illustrating the scale of the leap.
At the 1H FY26 interim result, Ridley reported underlying EBITDA of $55.4 million, with the Fertilisers segment performing at the higher end of expectations through its first quarter of contribution, giving early confidence that the full-year step-change was achievable.
Understanding the one-off items behind the statutory result
The $33.5m in post-tax individually significant items explains why statutory NPAT fell despite strong underlying growth. These items are largely non-recurring and comprise:
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IPF net acquisition and integration costs: −$4.8m
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NovaqPro® non-cash impairment: −$28.7m (net)
The NovaqPro® impairment reflected a non-cash write-off of the remaining net assets as product commercialisation falls behind expectations. The business remains operational, and management noted that strategic alternatives remain under consideration. The IT integration project, part of the acquisition costs, is expected to complete in FY27.
Balance sheet and capital discipline
Ridley ended the year with a strong balance sheet. Headline leverage sat at 0.85x, below the target range of 1.0x – 2.0x, while operating cash flow reached $122.4m, net of $34m in acquisition and integration costs.
The company reported liquidity headroom of $444m against facility limits of $740m, supported by a well-staggered maturity profile across its term facilities maturing September 2028 and September 2030.
Capital expenditure totalled $67m in FY26, split between maintenance of $44m and growth of $23m. Maintenance capex was elevated by major projects completed during the period and is expected to moderate in future periods.
The company’s dividend policy targets a payout of “50% – 70% of NPAT (before significant items)”, with the final dividend representing 63.8% of NPAT.
Capital allocation focus
The presentation highlighted disciplined capital management as central to delivering for shareholders, with positive cash generation and a progressive, fully franked dividend underpinning the balance sheet.
Growth plan on track and FY27 outlook
Management positioned the result within the FY26–FY28 Growth Plan, first presented at the Investor Strategy Day on 10 March 2026. Now one year into the three-year program, the plan was described as “on track.”
In FY27, Ridley expects Group earnings growth across each segment, driven by:
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Fertilisers — transition and integration benefits plus a full-year earnings contribution.
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Bulk Stockfeeds — volume growth and capacity utilisation.
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Packaged & Ingredients — operational performance recovery and an improved commodity outlook.
Ridley intends to continue its existing Capital Allocation Framework, maintaining a dividend payout target of 50–70% of NPAT.
The FY26 result leaves Ridley with a diversified, three-segment platform and a step-changed earnings base, which management outlined as positioning the Group for further growth in FY27.
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