EBOS Closes Its Investment Chapter and Flips to Cash Generation

FY26 delivered as guided: DC program done, CapEx normalizing, and FY27 growth to come from utilization, productivity, and bolt-on M&A.

EBO.NZ · Earnings Call · 2026-08-18

The Inflection Year

EBOS Group's FY26 results were exactly the "inflection year" management promised. Revenue grew 9.9% to A$13.5 billion, underlying EBITDA rose 5% to A$614 million, and — crucially for the investment thesis — the A$360 million distribution centre renewal program is complete. As Group CEO Adam Hall put it: “We delivered on our commitments while completing a major phase of investment.” — Adam Hall, Group CEO · 2026-08-18 The completion of Kemps Creek, the last of the automated sites, shifts the narrative from construction to operation. Management is already pointing to a 20% productivity uplift at the site versus the facility it replaced, with a target of 30% by year-end. This is the single biggest strategic change: the company moves from heavy CapEx to a normalized ~A$100 million run-rate, unlocking free cash flow and balance sheet flexibility.

What's Actually Growing

Beneath the headline numbers, the mix shift toward higher-growth businesses continues. Animal Care EBITDA rose 11.6%, and Southeast Asia Med Tech delivered low-double-digit organic growth. The GLP 1 train kept rolling, and high-value medicines (over A$1,000 per dose) are where EBOS "tends to over-index." Contract logistics GOR was up 13.1%. Notably, the 8 bolt-on acquisitions — including Paringa Pet Foods and K-Talyst — were all EBITDA and EPS accretive, and the company says they are "synergistic" with existing operations. bolt on acquisitions remain a core capital allocation tool.

We've delivered on our commitments. Our investment cycle is complete. We are excited to continue driving value for shareholders.
Adam Hall, Group CEO · 2026-08-18

The Gloves Are Off on Headwinds

It wasn't all smooth sailing. Fuel high fuel costs and FX — an AUD at a 13-year high against the NZD — knocked ~A$22 million off EBITDA. The Middle East disruption (a global theme) was contained to A$5 million, per the Q&A. The company also faces structural competition in Community Pharmacy; Adam described it as "stabilized but not reduced." The most tangible known drag is the Chemist Warehouse NZ wholesaling contract rolling off at end CY26. Management quantified it as "mid- to high single-digit EBITDA million" — about 1% of group EBITDA — and said they have been "tailoring our asset base" in NZ accordingly.

Guidance and the Path Forward

FY27 guidance of A$635–655 million underlying EBITDA (mid-single-digit growth) embeds no further acquisitions. It assumes an improvement in fuel at the low end and a worsening at the top. The team sees a investment cycle now turned to benefit: lower depreciation growth tailwind in H2, a lighter CapEx load, and ~A$150 million of incremental M&A capacity. As CFO Alistair Gray noted: “Leverage finished the year at 2.1x, within our target range.” — Alistair Gray, Group CFO · 2026-08-18 That balance sheet strength, combined with the cash inflection, is what makes the company's pivot to "utilization, productivity and bolt-on M&A" credible. The stock didn't move (no price data provided), but the operational narrative here is clear: the heavy lifting is done, and now the compounding begins.