Ansell posts double-digit earnings growth in FY26 results, guides higher for FY27
In its FY26 full year results presentation, delivered on 24 August 2026 by Chief Executive Officer Nathalie Ahlström and Acting Chief Financial Officer Fred Marx, Ansell (ASX:ANN) reported Adjusted EPS of 148.6¢, up 18.5% on an organic constant currency basis and landing at the upper end of guidance.
Management described it as the strongest result since FY21, which had been boosted by pandemic-driven demand. Supporting the headline, the company reported sales of US$2,140.2m (+6.8%), an Adjusted EBIT margin of 15.0% (+90bps) and cash conversion of 113%.
The result was delivered in what management described as dynamic market conditions, with the company offsetting the effects of US tariffs and Middle East crisis cost inflation. For investors, the Ansell full year results combined an earnings beat, margin expansion and rising shareholder returns against a challenging macroeconomic backdrop.
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FY26 results at a glance
The FY26 result showed momentum accelerating into the second half, with H2 growth of 9.2% on improved volumes, signalling positive exit velocity into FY27. Group-level metrics reflected both top-line growth and disciplined margin management.
On capital returns, the company determined a final DPS of US41.5¢ at a 50% payout ratio, bringing full-year DPS to US68.1¢ (+35.7%) at a 45% payout ratio. A ~US$118m share buyback was funded from operating cash flow, complementing the higher dividend.
| Metric | FY26 | Change vs FY25 |
|---|---|---|
| Sales | US$2,140.2m | +6.8% |
| Adjusted EBIT | US$321.9m | +14.1% |
| Adjusted EBIT margin | 15.0% | +90bps |
| Adjusted EPS | 148.6¢ | +18.5% (organic CC) |
| Full-year DPS | 68.1¢ | +35.7% |
| Cash conversion | 113% | vs 91% FY25 |
| Net Debt/Adjusted EBITDA | 1.3x | vs 1.6x FY25 |
Both segments fired in the second half
The presentation detailed a broad-based performance, with both operating segments contributing to earnings growth and margin expansion, particularly in the second half.
Industrial: margin lifts to 18.0%
The Industrial segment reported sales of US$947.3m (+5.4%) and Adjusted EBIT of US$170.6m (+9.7%), with margin expanding to 18.0% from 17.3% a year earlier. Management attributed the performance to several drivers:
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Growth in key verticals including aerospace and defence
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H2 momentum in US industrial markets
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Success with customer-led innovation in Mechanical
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Profitable growth in higher margin geographies, including North America and EMEA
Mechanical recorded Adjusted Sales Growth of 6.5% for the year.
Healthcare: double-digit earnings growth
The Healthcare segment reported sales of US$1,192.9m (+8.0%) and Adjusted EBIT of US$170.7m (+20.3%), with margin lifting to 14.3% from 12.8%. The standout feature was the second-half acceleration, with Total Healthcare Adjusted Sales Growth of 12.3% in H2, compared with just 1.1% in H1.
Cleanroom solutions led the way, growing 10.0% for the year and 17.2% in H2, aided by the acquired KBU (Kimtech™/KleenGuard™) portfolio and higher US demand.
How Ansell absorbed tariffs and the Middle East crisis
A central theme of the presentation was resilience. Management outlined how the company offset the effects of higher US tariffs through sourcing optimisation initiatives and price increases, while Middle East crisis cost inflation was offset via supply chain resilience, brand pricing power and balance sheet strength.
On tariff recovery, the company noted it is pursuing refunds for tariffs paid prior to the February Supreme Court ruling, with an initial ~US$12m received in July. Management also flagged that pricing flexibility has been maintained should policies change, offering a degree of downside protection.
Ansell’s leading positions in premium market segments, where customers prefer differentiated safety solutions that help them solve complex safety problems, underpinned the company’s decisive response to the challenging external environment.
What Ansell actually makes, and why it commands premium pricing
Ansell is a global manufacturer of hand and body protection, spanning industrial safety gloves and healthcare gloves across surgical, exam/single-use and cleanroom categories. Its investment relevance rests heavily on brand strength, which supports pricing power.
The company’s top five brands (HyFlex®, MICROFLEX®, AlphaTec®, TouchNTuff® and KIMTECH™) accounted for 58% of FY26 sales, grew 1.2x faster than the group and carry a +220bps higher gross margin on a direct basis than the total business.
Profitability is measured through GPADE, or Gross Profit After Distribution Expenses, a core measure that rose 70bps during the year. Customer stickiness was illustrated by the Amazon Ringers™ glove, a tailored product that management said contributed to a 65% reduction in Amazon hand impact injuries across deployed sites, demonstrating how solving a specific customer problem can win volume.
A stronger balance sheet funding growth and buybacks
The company reported meaningful deleveraging, with net debt reduced to US$510.6m from US$570.2m, and Net Debt/Adjusted EBITDA improving to 1.3x from 1.6x. The improvement was driven by strong earnings growth and a working capital inflow.
Operating cash flow rose sharply to US$270.1m, up from US$105.4m, reflecting higher EBITDA and lower inventory. Management pointed to US$752m of cash and undrawn facilities, a Moody’s Baa2 investment-grade rating and an average debt maturity of 5.5 years as evidence of financial flexibility.
Capital allocation during FY26 was funded across three uses:
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Dividends of US$78.8m
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Share buyback of US$118.4m
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Net debt reduction of ~US$60m
Management stated this capacity supports a combination of internal investment, M&A and further capital management.
Strategic priorities and the FY27 outlook
The presentation set out Ansell’s strategic framework alongside forward guidance, balancing growth ambitions against an uncertain macroeconomic environment.
Three levers to drive growth and returns
Management outlined a strategy built on three levers: two growth levers, commercial excellence and a focus on strategic markets, and one funding lever, operational excellence. On the funding side, the Accelerated Productivity Investment Program (APIP) delivered US$50m of recurring pre-tax savings in FY26, described as on time and in full, with ERP system rollout planned to commence in North America in FY27.
FY27 guidance
The company issued FY27 Adjusted EPS guidance of US158¢ to US170¢, before Significant Items and excluding the effects of the on-market share buyback. The range implies continued growth from the FY26 base of 148.6¢. Key assumptions provided include:
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Constant currency sales growth versus FY26, from higher volumes and price
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A ~US$9m FX benefit, mainly from reduced hedge contract losses
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Capex of US$45m to US$55m
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Continuation of the existing US$200m on-market buyback, with ~US$118m completed in FY26
Management flagged the macroeconomic environment as uncertain. Even so, the forward-looking case presented rests on continued momentum, margin expansion, a deleveraged balance sheet and ongoing capital returns heading into FY27.
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