Brambles First Take Trading Update

Goldman Sachs maintains a Sell rating on Brambles following a trading update highlighting US subcontractor exits that caused operational disruption and a US$60m cost impact. While demand remains strong, repair capacity constraints are forcing costly pallet relocations and temporary volume losses.

Key Takeaways

• 1.US subcontractor service centre disruption in the Northeast and Central regions has constrained repair capacity, leading to supply issues for US customers.
• 2.Management estimates a ~US$60m impact in FY26 due to supply chain inflation and lost volumes, though most costs are viewed as transient and expected to resolve by 1H27.
• 3.Brambles is absorbing short-term cost increases rather than passing them to customers, deferring new customer onboarding in affected areas.

Table of Contents

• Our key takeaways from the BXB sell-side call, following the FY26 trading update
• Price Target Risks and Methodology - Brambles
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures

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