Joyce Corporation Ltd Highlights Record FY26 EBIT and 30c Dividend

Joyce Corporation delivers strong FY26 result with EBIT up 32% and lifted dividend

In its FY26 full-year results presentation, released to the ASX on 31 August 2026, Joyce Corporation (ASX: JYC) revealed a strong annual performance, with normalised Group EBIT of $31.5M, up 32%, on revenue of $169.9M, up 14.7%.

The result was driven by double-digit growth at its KWB Group kitchen and wardrobe business and improved margins at bedding retailer Bedshed, both underpinned by capital-light, high-margin operations. Joyce ended the period with net cash of $48.5M and a debt-free balance sheet.

The FY26 result builds on record 1HY26 earnings reported in February, when normalised NPAT rose 29% to $5.1M and KWB’s order book reached $55M, establishing the foundation for the strong second-half delivery.

Reflecting the strength of the result, the company lifted its full-year ordinary dividend to 30 cents (fully franked), up from 22 cents in FY25. Normalised net profit after tax (NPAT) attributable to JYC shareholders reached $10.8M, up 32%, with normalised earnings per share (EPS) of 36.6 cents.

FY26 snapshot at a glance

The presentation detailed a broad improvement across the group’s key financial metrics, with EBIT margin expanding to 18.5% from 16.1% in the prior year.

Management also highlighted tight cost control, with the cost of doing business falling to 25% of revenue, down from 28% in FY25.

KWB Group powers group growth with double-digit gains

KWB Group was the primary earnings driver in FY26, with segment revenue of $143.2M, up 19.0%, and segment EBIT of $31.6M, up 30.3%. The segment’s EBIT margin expanded to 22.1%, from 20.2% in FY25.

The presentation detailed $150.0M of orders, up 16.6% on the prior year, with a record last-twelve-months order figure of $150.5M reached in May 2026. The order book stood at $49.9M at 30 June 2026. JYC holds a 51% majority interest in the net profit attributable to its shareholders from KWB.

Operationally, KWB designed and installed more than 4,300 kitchens and 2,100 wardrobes during the year and secured its fifth consecutive Product Review award.

Management noted the following FY27-to-date trading:

• July orders down 9.8% on a strong prior corresponding period

• August orders to 23 August up 1% on the prior corresponding period

• Forward order book of $46.7M at the end of July 2026 ($44.4M pcp)

Network expansion toward 55+ showrooms

Management outlined a clear roadmap for showroom growth. The network expanded to 31 showrooms at 30 June 2026, with two additions at Melrose Park (SA) and Moore Park (NSW). Flagship showrooms at Fyshwick (ACT) and Fortitude Valley (QLD) are scheduled to open in FY27, targeting 33 showrooms by year-end.

The presentation set out a staged rollout toward a long-term target of 55+ A-grade locations:

1. FY27 foundation: 33 showrooms by end FY27, anchored by the Fyshwick and Fortitude Valley flagships.

2. Near term: selective A-grade locations and expansion of the wardrobe category into New South Wales.

3. Medium term: staged entry into Victoria, building toward 55 A-grade locations.

4. Longer term: further expansion into Western Australia and other opportunities beyond 55 showrooms.

Bedshed lifts EBIT despite value-focused consumers

Bedshed delivered a resilient result, with Combined Operations EBIT of $4.7M, up 8.5%, and EBIT margin improving to 17.7% from 16.0% in FY25. This came despite Combined Operations revenue easing to $26.6M from $27.2M, as consumers remained focused on promotions and value.

Network business written sales (BWS) reached $163.9M, up 1.8%. Franchise operations contributed EBIT of $3.0M at a strong 48.2% margin, while company-owned stores delivered EBIT of $1.7M at an 8.4% margin. Like-for-like company-owned store revenue rose 4.5% on FY25.

The network comprised 42 stores at year-end, made up of 37 franchised and 5 company-owned locations. Early FY27 trading showed July BWS of $11.9M (+1.8%) and August BWS to 23 August of $9.5M (+6.1%).

Management reaffirmed a long-term, franchise-led target of 65+ stores.

What “capital-light” means for Joyce investors

Both KWB and Bedshed operate capital-light business models, meaning they generate strong cashflow without heavy investment in fixed assets. KWB funds much of its working capital through staged customer payments and uses flexible labour and installation partners, while Bedshed earns franchise fee income across its network.

For investors, this translates into high margins, strong cash conversion, and resilience during tougher trading conditions. It also gives the company capacity to fund network expansion without taking on debt. In FY26, the group generated $46.3M of operating cashflow and closed the year with a debt-free balance sheet.

Shareholder returns and cash strength

Joyce declared a final dividend of 17.0 cents (fully franked), taking the full-year ordinary dividend to 30 cents, up from 22 cents in FY25. This represents a normalised NPAT payout ratio of 80%, sitting within the company’s stated policy range of 60% to 80%.

Closing group cash stood at $48.5M, comprising $30.0M held in KWB (including $15.0M of customer deposits) and JYC’s share of $18.6M.

The presentation summarised the group’s cash movement across the year:

• Opening cash of $39.2M

• Operating cashflow of $46.3M

• Dividends paid to KWB minority interests of $10.1M

• Dividends paid to JYC shareholders of $9.1M

• Closing cash of $48.5M

KWB Group Transition

“Built the way KWB always has – purposefully, with infrastructure ahead of growth, funded from a capital-light model and robust balance sheet.”

The investment case and what’s next

The presentation reinforced four pillars underpinning the investment case: established brands with strong customer relationships, high-margin and capital-light operations, large addressable markets, and a strong balance sheet with net cash of $48.5M.

Management emphasised significant network expansion runway in both businesses, with KWB targeting 55+ showrooms and Bedshed 65+ stores, noting both remain under-represented across Australia. The wardrobe category was highlighted as a national growth opportunity, with a refined, dedicated range to be tested in Queensland ahead of a planned national rollout.

On leadership, the presentation framed the appointment of Cameron Crowell as CEO of KWB Group as a planned transition, executed to plan. The company described its strategy as continuing a long-term trend of revenue and EBIT growth driven through network expansion and increasing category attachment.

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