• Statutory NPAT up 9.3% to $1,603 million
• Bunnings, Kmart Group and WesCEF drive strong earnings
• Continued focus on productivity and efficiency initiatives

Wesfarmers Limited has reported a statutory net profit after tax (NPAT) of $1,603 million for the half-year ended 31 December 2025, an increase of 9.3 per cent. The result reflects strong operational performance and disciplined execution of the Group's strategies to create shareholder value. The increase in profit was supported by strong earnings contributions from the Group's largest divisions - Bunnings, Kmart Group and WesCEF. During the half, Wesfarmers' divisions benefited from productivity initiatives to navigate ongoing challenging market conditions. Despite a modest improvement in consumer demand, higher costs continued to weigh on many households and businesses, and residential construction activity remained subdued. The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers. The divisions continued to progress key growth and efficiency opportunities this half, including expanding addressable markets, improving instore sales density, advancing expansion projects in WesCEF and leveraging data and digital capabilities to accelerate growth instore and across digital channels. Bunnings and Kmart Group's everyday low prices and leading offers continued to support sales and earnings growth, with a sustained focus on productivity enabling operating leverage. WesCEF's earnings benefited from a positive contribution from its lithium business, supported by the strong performance of the mine and concentrator and a significantly improved pricing environment later in the half. Officeworks' earnings were impacted by costs associated with its transformation program, while Wesfarmers Industrial and Safety was effective at navigating challenging trading conditions. Wesfarmers Health delivered higher earnings as the transformation gains momentum.

Based on customer contracts for the majority of WesCEF's share of spodumene concentrate production in the second half of the 2026 financial year, lithium earnings in the second half are expected to be slightly ahead of the first half.

Wesfarmers remains well positioned to deliver satisfactory returns to shareholders over the long term, supported by its portfolio of cash generative businesses with market-leading positions, strong balance sheet and commitment to invest to strengthen its existing divisions and develop platforms for growth. The retail divisions will continue to leverage investments in omnichannel assets and capabilities to drive growth in sales and earnings, while maintaining cost discipline and executing productivity initiatives, including ongoing investments to digitise operations and increase the use of data and AI. The performance of the Covalent Lithium joint venture's refinery during commissioning has been pleasing, with the refinery producing high-quality lithium hydroxide, demonstrating the underlying process is operating as intended. The timing of the production ramp-up phase is now expected to be extended, with work underway to address intermittent odour issues.