GrainCorp (ASX:GNC) shareholders heard an update on the company’s FY2025 performance and its outlook for FY2026 at the group’s Annual General Meeting, where management highlighted a challenging global grain market marked by oversupply and low prices, alongside ongoing strategic investment and capital management initiatives.
FY2025 results delivered higher earnings despite margin pressure
Chair Peter Richards said FY2025 coincided with above-average domestic crop production and strong global grain and oilseed supply, which “compressed commodity prices to near cyclical lows” and constrained margins across the business. Against that backdrop, he said GrainCorp delivered underlying EBITDA of AUD 308 million and net profit after tax (NPAT) of AUD 87 million, both higher than the prior year. The company ended the year with a core cash position of AUD 321 million.
Spurway said GrainCorp’s ECA network handled 31.6 million tonnes in FY2025, up from 28.0 million tonnes in FY2024. While overall margins were tighter, he said the company captured better margins “where they were available” across certain commodities, including chickpeas and canola. He also said the company’s bulk materials program at ports delivered a record financial contribution in FY2025.
Dividends, buyback, and capital discipline
Richards said the board declared a fully franked FY2025 final dividend of AUD 0.24 per share, bringing total ordinary and special dividends for the year to AUD 0.48. He added the company also returned AUD 38 million through a share buyback.
Spurway told shareholders GrainCorp had extended its previously announced AUD 75 million share buyback, with AUD 38 million completed to date. He said management was focused on cost control and capital discipline while continuing to invest for growth in a difficult margin environment.
FY2026 outlook: global oversupply and lower guidance
Management said the outlook for FY2026 is being shaped by a cyclical global oversupply of grain, keeping prices low and limiting growers’ willingness to engage with the market. Spurway said end customers have “purchasing optionality” in a competitive export environment, limiting margin opportunities for grain handlers.
GrainCorp expects FY2026 underlying EBITDA of AUD 200 million to AUD 240 million and underlying NPAT of AUD 20 million to AUD 50 million. Spurway said the guidance excludes costs associated with the business transformation program and the impact of the GrainsConnect Canada sale.
Spurway said the agribusiness segment is expected to be lower year-on-year due to reduced margins and volumes, with forecast full-year receivals of 11 million to 12 million tonnes and exports of 5.5 million to 6.5 million tonnes. He said nutrition and energy earnings are expected to be “softer” year-on-year, with human and animal nutrition broadly in line, while agri-energy margins are expected to be lower amid global uncertainty around biofuel policies.
Harvest update and market conditions
Spurway provided an update on the 2025–26 winter harvest, saying growing conditions were strong overall but varied across the east coast, with production in all states expected to be above the 10-year average. He cited ABARES forecasting an ECA winter crop of 31.2 million tonnes for the 2025–26 season. While an early start in northern Queensland was followed by weather-related interruptions that prolonged the harvest, GrainCorp had received 10.6 million tonnes into its network during the harvest period as of the week of the meeting, and year-to-date export volumes were 2.3 million tonnes.
In discussing the oversupply backdrop, Spurway cited USDA data indicating global wheat supply exceeded demand by 18 million tonnes in the year referenced. He said low prices have led growers to deliver a smaller portion of harvested crop to market, increasing competition among purchasers and lowering margins for handlers. He said management expects supply and demand to revert toward balance over time, though the timing is unclear.
Safety, sustainability, and board matters
Both Richards and Spurway said the company was disappointed by a deterioration in injury frequency rates, despite longer-term encouraging trends. Richards highlighted work on simplifying and standardizing approaches to critical on-site risks through a redeveloped critical risk framework, with progress cited in areas such as confined spaces, mobile plant, and bunker management.
On sustainability, Richards said GrainCorp released validated science-based emissions reduction targets across scopes 1, 2, and 3. He pointed to initiatives including energy efficiency improvements at processing sites, reductions in waste to landfill across the ECA network, and progress on GrainCorp Next, which he described as an initiative to build a low-emission canola supply chain. Richards also referenced the GrainCorp Community Fund supporting more than 150 regional groups and noted 10 years of the Silo Art program, with 19 projects completed across Queensland, New South Wales, and Victoria.
Board renewal was also addressed. Richards said two new non-executive directors, Samantha Hogg and Sarah Adam-Gedge, joined during 2025 and were standing for election at the meeting. Hogg was identified as succeeding retiring director Kathy Grigg as chair of the Audit and Risk Committee following the meeting. Richards confirmed Grigg would retire at the conclusion of the AGM.
Shareholders voted on several resolutions by poll, including adoption of the remuneration report, election of the two directors, and approval of the grant of performance rights to CEO Robert Spurway. During Q&A, executives discussed market diversification, noting GrainCorp had expanded the number of markets it actively sells to from about 30 to more than 50 over the past five to six years, and addressed questions regarding modern slavery risk by referencing the company’s policies and supplier evaluation processes. Spurway also responded to a question on his long-term incentive outcomes, saying the most recent LTI vested in part, while the prior three years paid out in full, and that he had sold shares only to meet tax obligations while continuing to hold more than 500,000 shares.
About GrainCorp (ASX:GNC)
GrainCorp Limited operates as an agribusiness and processing company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. It operates through two segments, Agribusiness and Processing. The company handles and trades in wheat, barley, sorghum, corn, oilseeds, pulses, organics, animal fats, and used cooking oils and vegetable oils for animal feed purposes; handles, processes, and stores grains and oilseeds; refines, bleaches, deodorizes, and blends edible fats and oil products; and crushes, processes, manufactures, and distributes edible oils.
