EBOS Group Limited (ASX: EBO) on 22 April 2026, updated its FY26 earnings outlook, attributing the revision to elevated fuel and broader energy cost pressures. EBOS Group, a diversified healthcare and animal care company across Australasia providing pharmaceutical wholesale and other services, affirmed its commitment to uninterrupted service despite these significant challenges.
The company noted materially increased fuel prices in recent months, driven by global supply dislocation and heightened geopolitical risks. These, coupled with impacts on hydrocarbon-related consumables, have led to higher direct transport and logistics costs, particularly within its distribution-intensive businesses. While underlying demand remains stable, these cost increases in the second half of FY26 have surpassed previous assumptions.
While EBOS has levers to mitigate these costs, a meaningful proportion of recent increases are not expected to be addressable this financial year. This is partly due to EBOS’s essential role in the Australian and New Zealand healthcare supply chain, where service continuity, government arrangements like the Community Service Obligation (CSO), and customer affordability limit full or immediate cost pass-through. EBOS, via Symbion, is engaged with stakeholders including the Australian Government regarding fuel cost recovery, though timing or outcome remains unclear.
Based on current assumptions, EBOS Group now anticipates FY26 underlying EBITDA of approximately $610 million to $620 million (all currency amounts are in Australian dollars), revising its prior guidance of $615 million to $635 million. This reflects $5 million to $10 million in additional costs absorbed for service continuity, not a change in underlying demand. While efficiency actions are expected to partly offset higher costs in FY27, the outlook for fuel and energy costs beyond FY26 remains uncertain.
