Inghams Cuts FY26 Guidance as Cost Pressures Hit First-Half Profit

The latest announcement is out from Inghams Group Ltd. ( (AU:ING) ).

Inghams reported first-half FY26 earnings broadly in line with earlier guidance but sharply lower than a year ago, as underlying EBITDA pre AASB 16 fell 35% and net profit dropped nearly 65% amid higher costs tied to excess inventory, supply chain transition and customer on-boarding. While core poultry volumes edged down overall, second-quarter volume growth, stronger wholesale pricing, resilient New Zealand operations and inventory reductions are expected to support a stronger second half, though full-year EBITDA guidance has been cut and leverage has risen above the company’s target range.

Management is implementing an operational reset to restore efficiency, including improved planning, stabilising the supply chain and targeted farming and processing initiatives, with internal feed costs already lower and cash conversion improving due to inventory run-down. The shift of growers to variable performance-based contracts has lifted operating costs but is largely offset by lower depreciation and interest under AASB 16, and Inghams expects earnings momentum to rebuild through the second half and into FY27 despite the reduced FY26 outlook.

The most recent analyst rating on (AU:ING) stock is a Sell with a A$2.10 price target. To see the full list of analyst forecasts on Inghams Group Ltd. stock, see the AU:ING Stock Forecast page.

More about Inghams Group Ltd.

Inghams Group Limited is a major poultry producer operating in Australia and New Zealand, supplying core poultry products, by-products and animal feed to retail, wholesale and quick service restaurant customers. The company focuses on branded and wholesale poultry markets, with operations spanning farming, processing and integrated supply chains across both countries.

Average Trading Volume: 1,872,523

Technical Sentiment Signal: Sell

Current Market Cap: A$894.5M

For an in-depth examination of ING stock, go to TipRanks’ Overview page.