Ansell’s shares experienced a significant rally following the release of its latest earnings report. According to RBC Capital Markets analyst Craig Wong-Pan, the company’s FY25 underlying earnings per share landed at the high end of its upgraded guidance range. Margins notably outperformed expectations, providing a positive signal to investors even as revenue figures disappointed.
Total revenue reached $US2 billion, marking a 24 per cent year-on-year increase, though it fell short of RBC’s forecast of $US2.05 billion. Wong-Pan noted that both the industrial and healthcare divisions experienced softer growth in the second half, leading to missed revenue forecasts across both sectors. Offsetting this, the company’s margins exceeded expectations, contributing to the overall positive market reaction. Ansell is a global leader in providing protection solutions, manufacturing and marketing a range of healthcare and industrial products. Their products include surgical and examination gloves, and protective clothing.
The company has revised its synergy target for the KBU acquisition upwards, from $US10 million to $US15 million. Management has indicated that incremental price increases will be implemented in response to tariffs announced in July. These price adjustments are projected to fully counteract the cost impact of the new tariffs, ensuring continued profitability.
RBC anticipates that Ansell’s stock will slightly outperform, buoyed by robust FY26 guidance for underlying EPS, projected between US133¢ and US145¢. This outlook is supported by an anticipated $US10 million in incremental synergies. However, this positive impact will be partially offset by one-off ERP upgrade costs of $US15 million and FY26 capex guidance ranging from $US60 million to $US70 million.
