Ridley Corporation Limited

For FY26, group EBITDA before significant items was $157.8 million, up $60.3 million year on year. EPS was $0.163 per share, up 18%; net finance costs were $32.2 million, depreciation and amortization was $43.4 million, and underlying tax was $21.4 million at a 25.8% effective tax rate. The Fertiliser segment delivered $72.2 million of EBITDA in its first 9 months of ownership; Bulk Stockfeeds was $50.3 million, up 5%; and Packaged and Ingredients was $51.6 million, down $11.4 million. Headline leverage was 0.85x and liquidity headroom was $444 million. For FY27, management expects group earnings growth in each segment, driven by full-year fertiliser contribution, volume and capacity utilization in Bulk Stockfeeds, and recovery in Packaged and Ingredients; the dividend payout target remains 50% to 70% of NPAT.

Quinton Hildebrand framed FY26 as a transformation year, saying the IPF fertiliser acquisition nearly doubled Ridley’s earnings base and made the company more diversified and resilient. He emphasized integration discipline, leadership upgrades, and a PMO to reset the fertiliser business and capture synergies. His tone was constructive and confident, especially around the FY27 outlook and the claim that the group is now on track against its FY26 to FY28 growth plan.

Chris Opperman focused on the financial mechanics of the acquisition and the balance sheet. He cited net debt of $296 million versus net cash of $64 million a year ago, but highlighted headline leverage of 0.85x, $444 million of liquidity headroom, and cash interest paid of $22.8 million. He also broke out the one-offs: a $37.5 million bargain purchase gain, $33.8 million of acquisition and integration costs after tax, and a $28.7 million noncash NovaqPro write-off. He said IT integration spend was $13.3 million and remains on track to total $30 million in FY27, while maintenance and ESG capex targets were reset to 80% to 100% of depreciation and cash conversion should stay strong.

Analysts focused first on whether Maroota and Timaru were now fixed; management said Maroota was fully reconstructed and back in use by the end of June, while Timaru had reached an acceptable level but still has some optimization left. Questions also drilled into the fertiliser baseline for FY27, and management would not project a pro forma number but said the business had a recent maintainable earnings base around $86 million and that FY26 included unusual price and timing effects. There was also debate about working capital and capital allocation after the acquisition: CFO said steady-state fertilizer working capital is about $50 million higher than June’s level, and management said grain trading remains mostly back-to-back with only limited balance-sheet use.