Harvey Norman FY26 Reported Profit Before Tax Up 4.9%

Harvey Norman Holdings Limited (ASX:HVN) reported reported profit before tax of $790.29 million for the year ended 30 June 2026, an increase of $37.18 million or 4.9 per cent on FY25. Excluding the net impact of AASB 16 Leases, net property revaluations and a pecuniary penalty recognised in FY26, profit before tax was $654.69 million, up $64.33 million or 10.9 per cent. Profit after tax and non-controlling interests was $528.46 million, up 2.0 per cent, or $437.81 million on the same excluding basis, up 8.6 per cent, with basic earnings per share of 42.41 cents. The board recommended a fully franked final dividend of 13.0 cents per share, payable on 12 November 2026 to shareholders registered on 7 October 2026; the company's highlights table shows fully franked dividends per share for FY26 of 27.5 cents against 26.5 cents in FY25, up 3.8 per cent. Total system sales revenue, which the company notes includes sales made by Harvey Norman, Domayne and Joyce Mayne franchisees in Australia that do not form part of the consolidated entity's financial results, increased 3.1 per cent to $9.64 billion, comprising $6.58 billion in aggregated Australian franchisee sales revenue and $3.05 billion in overseas company-operated sales revenue.

The franchising operations segment delivered profit before tax of $345.18 million, which the company described as broadly in line with FY25, on segment revenue up 4.3 per cent to $1.09 billion. The company separately said the segment generated a margin of 5.24 per cent for FY26 without stating the denominator on which it is struck. The overseas company-operated retail segment delivered profit before tax of $135.72 million, up 23.4 per cent on FY25; excluding the strategic UK expansion, established international retail operations generated $166.93 million of profit before tax, up 25.2 per cent from $133.36 million, which the company said represented 25.1 per cent of profit before tax excluding net property revaluations. The property segment delivered profit before tax of $333.49 million, up 3.7 per cent, a result that included a net property revaluation increment of $156.75 million recognised in the income statement; excluding property revaluations, property segment profit increased 5.7 per cent to $176.74 million. Total assets increased 5.7 per cent to $8.85 billion and net assets increased 2.0 per cent to $4.94 billion, with a net debt-to-equity ratio of 18.81 per cent, and operating cash flows were $537.22 million for FY26.