Elders Limited (ASX: ELD)Share Price and News

About Elders

Elders traces its agricultural roots back to the 19th century and was formally listed on the ASX in June 1981 (ticker: ELD). Today, the company employs approximately 2,900 people and operates from its Adelaide headquarters, supported by a national network of 242 company-owned rural service outlets and around 380 independent wholesale partner stores.

Its diversified business comprises three main areas: the retail delivery of agricultural supplies and advisory services, wholesale distribution to independent farm retailers, and feed and processing operations, including the sizable Killara feedlot in NSW.

In FY24, Elders recorded total sales of around A$3.13 b, with retail sales making up the bulk, and another A$835 m generated from its newly acquired Delta Agribusiness. These figures highlight the scale and national scope of Elders' operations, which now include specialised arms such as real estate, insurance, agronomy, livestock and wool brokerage, digital platforms, and advisory services.

Elders Company History

Elders is one of the oldest and most recognisable names in Australian commerce. Founded in 1839 by Alexander Elder in Adelaide (just four years after European settlement of South Australia) it began as a shipping and trading agency serving the colony's fledgling pastoral industry. Over the following century it evolved into the dominant rural services network in the country, operating wool broking, livestock agency, merchandise supply, and rural finance operations from one end of the continent to the other.

The company's modern history has been considerably more turbulent. A disastrous diversification into automotive retailing through the ill-fated Elders IXL conglomerate in the 1980s and 1990s (which at one point included Foster's Brewing, Elders Pastoral, and a range of industrial assets) ended in a sprawling restructure and decades of financial legacy issues. Elders returned to its agricultural roots in earnest following a recapitalisation in 2009 and the adoption of a focused Eight Point Plan strategy under CEO Mark Allison from 2014 onwards, methodically rebuilding margins, divesting non-core assets, and reinvesting in its branch network and digital capabilities.

The most significant recent chapter is the $475 million acquisition of Delta Agribusiness, completed in November 2025 after navigating an ACCC review that required the divestment of six Western Australian stores. The deal added 62 rural stores and significantly enhanced Elders' technical expertise in agtech and precision agriculture, giving the company a network of over 300 rural retail locations nationwide — comfortably the largest of any agribusiness in the country.

Future Outlook of Elders (ASX: ELD)

Elders' FY2025 full-year results, released in November 2025 for the twelve months to 30 September, were strong by any measure — particularly given the conditions the business was operating through. The company delivered $143.5 million in underlying EBIT, a 12% increase on the prior year, with a final dividend of 18 cents per share fully franked.

Sales revenue rose to $3.2bn and net income increased to $50.3m, with underlying NPAT up 34%. The standout divisional performances came from agency and real estate, with agency services gross margin up 22% and real estate services gross margin rising 27.2%, divisions that benefited directly from elevated cattle prices and resilient regional property markets. Retail products was the soft spot, dragged by dry conditions in South Australia and western Victoria and heightened competition pricing late in the season.

The FY26 setup looks materially more favourable. Early trading for FY26 is tracking 30% above the prior year, with management citing strong international demand for livestock against a backdrop of tightening supply.

Management has guided to 5–10% growth in both earnings and profit for FY26, underpinned by the recovery in SA and Victoria from drought conditions, a full twelve-month contribution from Delta Agribusiness, and the roll-out of Elders' new retail operating system (SISMOD) which is expected to lift retail margins meaningfully once fully implemented. Delta is expected to contribute $12 million in synergies at the EBIT level over three years, with the bulk realised through procurement, back-office consolidation, and cross-selling of financial and real estate services through the expanded branch network.

Is Elders a Good Stock to Buy?

Elders is one of the more straightforward investment propositions on the ASX for investors who understand the agricultural cycle. It is not a growth-at-any-price story, nor a deep value turnaround — it is a mature, diversified agribusiness in the early stages of a meaningful earnings re-rating driven by a combination of cyclical recovery and structural expansion.

The Delta acquisition is genuinely transformative in scale. More than 300 rural stores, deep agtech capabilities, and expanded geographic coverage in WA and NSW give Elders a competitive moat that will be exceptionally difficult for any rival to replicate. The integration risk is real — absorbing a $475 million acquisition while simultaneously rolling out a new retail operating system is not trivial — but management's track record over the past decade of disciplined execution provides some reassurance.

The valuation is not demanding. The stock trades at a forward P/E of around 13 times and an EV/EBITDA of roughly 8.4 times, modest multiples for a business with genuine earnings momentum, a fully franked dividend, and exposure to what management describes as the most constructive agricultural backdrop in several years. The 36 cents per share total FY25 dividend represents a yield of around 4.5% at current prices, which is not eye-catching but becomes more interesting on a grossed-up basis for Australian taxpayers.

The key risk is the weather. Elders cannot insulate itself entirely from drought, as FY25's retail division demonstrated; and a second consecutive dry year in southern Australia would pressure the recovery thesis. Net debt of $457m following the Delta acquisition also warrants monitoring, though leverage of 2.9 times EBITDA is manageable and expected to unwind quickly given strong cash generation. For long-term investors comfortable with agricultural cyclicality, Elders at current prices offers compelling risk-adjusted exposure to a uniquely Australian franchise.