GrainCorp has issued its financial guidance for fiscal year 2026, projecting underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be between $200 million and $240 million. This is a decrease from the $308 million reported in FY25. The company also expects an underlying net profit after tax (NPAT) of $20 million to $50 million, a decline from the $87 million recorded the previous year. GrainCorp is a leading Australian agribusiness and processing company, operating a network of grain storage and handling facilities. It connects Australian growers to local and international customers.
The company stated that its guidance excludes business transformation costs and any financial impact resulting from the sale of GrainsConnect Canada. These projections remain contingent upon prevailing market conditions. GrainCorp noted that global grain markets are currently experiencing a cyclical oversupply, which has resulted in low prices. Moreover, grower selling activity across the east coast of Australia has been sluggish, contributing to export margins hitting multi-year lows.
According to Managing Director Robert Spurway, record global grain production has outstripped demand growth. This imbalance has exerted downward pressure on commodity prices, diminishing the incentives for growers to sell their produce, despite robust local production levels. GrainCorp also provided insights into its nutrition and energy segments. The company anticipates that average crush margins and contributions from animal nutrition in FY26 will align with FY25 figures. However, the agri-energy contribution is expected to decrease due to uncertainty surrounding US biofuels policy.
