Wesfarmers’ (ASX:WES) Chemicals, Energy & Fertilisers (WesCEF) division earnings have been affected by lower global commodity prices, but operational performance remains strong.
The conglomerate reports an overall company statutory net profit after tax (NPAT) of $2.926 billion for the full-year ending 30 June 2025, an increase of 14.4% on the prior year.
WesCEF generated $2.962 billion in revenue for the period, up just 7.8% from the 2024 corresponding period on the back of lower commodity prices.
Domestic cost pressures are expected to persist for the Perth-based company in the 2026 financial year, driven by labour, energy and supply chain costs.
To mitigate these, Wesfarmers’ divisions are executing productivity initiatives, including investments to digitise operations and increase the use of AI to support growth and efficiency.
Managing Director Rob Scott says growth in overall company profit highlights the quality of the group’s businesses and teams and the continued execution of growth and productivity initiatives.
During the period, construction of the Kwinana lithium hydroxide refinery was completed, and a key milestone was reached in July 2025 when the first product at the refinery was achieved.
Wesfarmers and its joint venture partner Sociedad Química y Minera de Chile’s (SQM) remain focused on the development of the Covalent lithium project.
The company believes the 2026 financial year will be a transitional year for the project, with production at the refinery expected to ramp up over the next 18 months, while product qualification processes with customers may take between three to nine months.
The performance of the group’s industrial businesses remains subject to commodity prices, foreign exchange rates, competitive factors and seasonal outcomes.
“Wesfarmers’ Industrial and Safety’s earnings declined, impacted by a softer market environment and restructuring costs in Blackwoods and Workwear Group,” Scott says.
“Pleasingly, actions taken to reset the operating model materially improved operational performance and enhanced customer service in the second half.
“Portfolio actions taken during the year demonstrate the group’s disciplined approach to capital allocation and focus on shareholder returns. This includes the sale of Coregas, which completed on 1 July 2025 for $770 million, and the decision to wind down Catch and transition select assets and capabilities to the retail divisions.”
As a result of the increase in profit, Wesfarmers has determined to pay a fully franked final dividend of $1.11 per share, bringing total fully franked ordinary dividends for the year to $2.06 per share, an increase of 4%.
Wesfarmers has also today appointed Ken MacKenzie as Chairman to succeed Michael Chaney from the conclusion of Wesfarmers’ 2026 AGM, expected to be held on 29 October 2026.
MacKenzie will join the board on 1 June 2026 and will stand for election as a director by shareholders, as required under Wesfarmers’ constitution, at the 2026 AGM.
Write to Adam Orlando at Mining.com.au
Images: Wesfarmers
