Company Reports

Ansell's fiscal 2026 adjusted EPS of USD 1.49 per share is at the top end of guidance. Constant-currency adjusted EBIT of USD 322 million is 15% higher year over year due to a mix shift toward higher-margin sales, more than offsetting the tariff and cost inflation impact. Shares rose 14% on Aug. 24.

Ansell’s strategic focus is on growing market share in niche markets across industrial and healthcare settings. We think this strategy is appropriate, given a less competitive environment in niche markets, where product innovation and regulatory requirements raise barriers to entry, and an ability to achieve better margins from these sales.

Ansell’s strategic focus is on growing market share in niche markets across industrial and healthcare settings. We think this strategy is appropriate, given a less competitive environment in niche markets, where product innovation and regulatory requirements raise barriers to entry, and an ability to achieve better margins from these sales.

Following the recent transfer to a new analyst, we take a closer look at Ansell's moat, capital allocation and uncertainty ratings, in addition to its key growth drivers. Critically, we reassess what this means for our long-term earnings assumptions and thesis.

We transfer coverage of Ansell, a leading supplier of protective gloves in healthcare and industrial settings. The majority of sales come from its key branded product ranges. It has a global manufacturing and distribution footprint, supplying directly and via key partners in over 100 countries.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US. In the healthcare segment, Halyard Health (spun out of Kimberly-Clark in 2014) and Cardinal Health are major players.

Ansell's interim 2026 underlying EPS grew a solid 19%, on modest 2% underlying sales growth and lower freight and improved supply chain productivity. Despite currency headwinds, the firm's full-year underlying EPS guidance range was reiterated, implying 13% growth at the midpoint.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US. In the healthcare segment, Halyard Health (spun out of Kimberly-Clark in 2014) and Cardinal Health are major players.

Ansell's CEO, Neil Salmon, is retiring after 13 years, including as CEO since 2021. External candidate Nathalie Ahlstrom has been appointed to succeed in February 2026, with Salmon continuing as a special advisor until June 30, 2026. Shares fell 4%.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US In the healthcare segment, Halyard Health (spun out of Kimberly Clark in 2014) and Cardinal Health are major players.

Ansell upgraded its fiscal 2026 underlying EPS guidance range by 3%, to USD 1.37-USD 1.49, implying 13% growth at the midpoint on last year. While trading is in line with management's expectations, a weaker US dollar against key revenue currencies has driven the slight upgrade. Shares rose 6%.

Ansell's fiscal 2025 underlying EBIT grew 10%, driven by solid sales growth of 8% due to customers increasing inventories and successful new product launches. Fiscal 2026 underlying EPS guidance implies 10% growth at the midpoint on minimal tariff impact and further cost savings on synergies.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US In the healthcare segment, Halyard Health (spun out of Kimberly Clark in 2014) and Cardinal Health are major players.

While pharmaceuticals are still exempt from US tariffs, President Donald Trump has threatened a potential 200% tariff on these imports, perhaps from 2027. Reciprocal tariffs announced prior have also been delayed by a month to Aug. 1, 2025. Australian healthcare stocks barely reacted.

President Donald Trump unleashed a barrage of reciprocal tariffs on US trading partners that were more expansive and aggressive than the market was expecting. Pharmaceuticals are exempt for now but most medical devices are affected. Australian healthcare stocks broadly reacted negatively.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US In the healthcare segment, Halyard Health (spun out of Kimberly Clark in 2014) and Cardinal Health are major players.

Ansell’s focus is on its key brands across industrial and healthcare settings. Each market is quite fragmented and Ansell’s market share varies by subsegment, but the firm has consistently held the highest or second-highest global market share in its key verticals. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private UK company, and ATG Gloves in the US In the healthcare segment, Halyard Health (spun out of Kimberly Clark in 2014) and Cardinal Health are major players.

Narrow-moat Ansell’s first-half fiscal 2025 underlying EBIT grew strongly by 21% to USD 127 million on 13% organic sales growth and improved manufacturing utilization and efficiencies. The result was broadly in line with our expectations, with stronger group sales offsetting slightly weaker margins.

Narrow-moat Ansell has had a strong start to fiscal 2025, with end-market conditions tracking broadly in line with our original expectations. Manufacturing demand is relatively weak, but new products have supported strong sales in its industrial segment. Meanwhile, its healthcare division is recording strong sales too, with customer destocking in key healthcare end markets now largely complete. Strong organic sales growth, together with its acquisition of Kimberly-Clark’s personal protective equipment business, or KBU, tracking ahead of management’s prior expectations, has more than offset cost inflation. Management relayed inflationary pressures in raw materials as well as higher freight costs on increased use of air freight to mitigate sea delays. Management also confirmed it’s on track to achieve its cost savings target of USD 45 million in fiscal 2025.

Narrow-moat Ansell’s fiscal 2024 underlying EBIT fell 1% in constant currency to USD 196 million but was 3% ahead of our forecast thanks to better margins. Second-half fiscal 2024 EBIT margin improved over 4 percentage points to 14% versus the first half. This was largely driven by a significant improvement in Ansell’s healthcare division due to lower customer destocking. Our fiscal 2025 underlying EPS forecast of USD 1.17 is within management’s guidance range of USD 1.07 to USD 1.27. Our long-term estimates are broadly unchanged but we increase our fair value estimate by 5% to AUD 33.50 due to the time value of money and lower forecast capital expenditure. Fiscal 2024 capital expenditure decreased 7% and guided to stay relatively flat in fiscal 2025 despite the firm expecting to complete its new surgical manufacturing facility in India.