Inghams lowers 2026 earnings forecast amid operational challenges
Australian poultry group cuts full-year guidance; first-half profit falls sharply
AUSTRALIA – Australian poultry producer Inghams Group has reduced its earnings forecast for the 2026 financial year following a weaker-than-expected start to the year.
The company now expects underlying earnings for the full year to range between US$127m and US$141m, down from its previous forecast of US$152m to US$162m.
Inghams attributed the revision to delays in the impact of operational improvements, which are now expected to show results primarily in the final quarter of FY26.
The business also reported a lackluster performance in New Zealand, adding to pressure on its overall results.
Shares in Inghams fell 13.52% in Australian trading after the announcement, reflecting investor concern over the earnings downgrade and a decline in first-half profit.
For the first half of FY26, net profit after tax dropped almost 65% to US$12.8m while revenue remained flat at US$1.14bn.
Earnings fell nearly 34% to US$98.5m and underlying EBITDA pre AASB 16 declined 35% to US$57.1m, with the company citing higher costs from excess inventory and supply chain transition.
CEO Ed Alexander said the first-half results were affected by the cost of managing surplus stock and inefficiencies in supply chain adjustments following customer changes in FY25.
He acknowledged the revised guidance was lower than previously expected but emphasized that it represents an improvement over the first-half outcome.
Alexander added that the company returned to volume growth in the second quarter and experienced price increases in both Australia and New Zealand, supported by more stable wholesale market conditions.
He said that reduced inventory levels are helping to restore normalised production and operational efficiency going into the third quarter.
The CEO projected that with inventory improvements and renewed momentum in core operations, earnings should recover in the second half of FY26 and carry into FY27.
Inghams also addressed media speculation from October suggesting the company was considering a sale, confirming that no such discussions have taken place.
For the full year ended 28 June 2025, Inghams recorded net profit to shareholders of US$62.9m, down 11.5%, while revenue fell 3.4% to US$2.2bn.
EBITDA decreased 15% to US$275.5m and EBIT dropped 6.2% to US$147.2m, with earnings per share declining 11.5% to 24.2 cents.
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