GrainCorp slumps after flagging lower earnings in FY26
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More news: GrainCorp slumped at midday after expecting lower earnings and profit in FY26 due to global oversupply concerns.
Shares fell 15.56% to $6.08 per share at 12:13pm AEDT.
RBC Capital Markets analyst Owen Birrell said, given the current operating environment and lower guidance, he has reduced confidence in the short term prospects for GrainCorp's trading margin recovery.
However, RBC Capital Markets holds an 'outperform' view on GrainCorp, setting the price target to $9.50 per share.
GrainCorp expects earnings decline in FY26 on global oversupply concerns
The news: Agriculture group GrainCorp has guided to lower earnings and profit in FY26 after warning of an oversupply in global grain markets and a slump in prices.
The numbers: GrainCorp expects FY26 underlying EBITDA to be $200-240 million, down from $308 million in FY25. It has guided underlying net profit of $20-50 million, down from $87 million a year earlier.
The context: The company said global grain markets are experiencing cyclical oversupply and low prices, placing pressure on grain export margins which remain at "multi-year lows".
What they said: "Record global production has created an oversupply of grain, outpacing demand growth and placing downward pressure on commodity prices for the whole market," said GrainCorp managing director and CEO Robert Spurway.
Spurway said that "as a result, GrainCorp is experiencing lower margins on grain handled in FY26".
The source: ASX
