Australian Agricultural Company shares slide on earnings downgrade
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The news: The Australian Agricultural Company’s (AACo) share price fell in morning trade after the cattle farmer announced it will face a material earnings hit due to heavy rain and flooding at properties in north western Queensland.
The numbers: At 10:49am AEDT, shares in AACo had lifted 2.4% to $1.42.
Of AACo’s 27 properties, three have been affected. The properties house around 55,000 cattle, about 12.1% of AACo’s total herd size of 456,000.
The company has not determined the overall impact on financial earnings for the March 2026 financial year but warned it is “likely to be material”.
The context: AACo does not hold flooding event insurance for its herd and infrastructure due to prohibitive costs, which the company said is "aligned with industry practce”.
Comparisons with a flood event in 2019 should be “approached with caution” as a “significantly lower head count” has been affected according to an announcement to the exchange.
There are also differences in cattle valuations, operating practices, property and livestock conditions as well as weather and rainfall variations. An impact review is underway with the company "noting there is still the possibility of further west season impacts”.
AACo said the majority of its properties are in south western Queensland and the Northern Territory where rainfall has been "favourable".
The source: ASX
