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Breville Group (BRG) AI Stock Analysis

AU:BRG

Breville Group

(ASX:BRG)

Select Model
Rating:72Outperform
Price Target:AUD 35.00â–²(14.45% Upside)
Action:upgraded
Date:08/20/26

The score is driven primarily by strong underlying financial quality (low leverage, solid profitability, and strong growth) and a generally constructive earnings-call outlook backed by strategic execution and balance-sheet capacity. This is offset by margin/cash-flow volatility, a relatively expensive valuation (high P/E with modest yield), and only neutral near-term technical momentum.

Positive Factors
Broad-based revenue growth and international expansionSustained growth across the Americas, EMEA and APAC, combined with rapid direct-market expansion, broadens Breville’s revenue base and reduces reliance on any single geography or channel over the medium term.
Negative Factors
Margin volatility and weaker full-year gross marginVariable gross margins indicate ongoing sensitivity to sourcing, freight, materials and pricing conditions. This can make earnings less predictable and may limit the conversion of revenue growth into durable profit growth.

Breville Group (BRG) vs. iShares MSCI Australia ETF (EWA)

-10%-5%0%5%10%15%20%25%AU:BRG+6.93%EWA+13.51%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
AUD 3.03B
Dividend Yield
1.24%
Average Volume (3M)
365.06K
Price to Earnings (P/E)
31.9
Beta (1Y)
1.31
Revenue Growth
6.74%
EPS Growth
1.18%
Country
Australia
Employees
1,239
Sector
Consumer Cyclical
Sector Strength
61
Industry
Furnishings, Fixtures & Appliances

Breville Group Business Overview & Revenue Model

Company Description

Established in 1957 and headquartered in Alexandria, Australia, Breville Group Limited operates as a worldwide developer, manufacturer, marketer, and distributor of small electrical household appliances. The company's diverse product portfolio, acces...

How the Company Makes Money

Breville Group makes money mainly by selling small kitchen appliances and related products to consumers, with revenue recognized when products are sold through its distribution channels. Its core revenue stream is the sale of branded appliances—espec...

Breville Group Earnings Call Summary

Earnings Call Date:Aug 17, 2026(Q4-2026)|% Change Since:-7.05%|Next Earnings Date:Feb 14, 2027
Earnings Call SentimentPositive

The call portrayed a predominantly positive operational and strategic position: record revenues (> $1.8B), broad-based constant currency growth (9.7%), strong retail execution (Best Buy), successful manufacturing diversification (85% of 120V GP dollars outside China), rapid expansion of new direct markets (74% growth), a solid balance sheet (net cash $104.4M), and meaningful AI‑driven productivity gains (e.g., 6.3x recipe production improvement). Offsetting these positives were persistent near‑term headwinds — tariff complexity and refunds/provisions, commodity inflation from Middle East tensions, elevated inventory (~$40M) tied to the manufacturing transition, and only 1.2% EBIT growth (below the company's normal target). Management emphasized readiness, continued investment in growth, and improving second‑half margins, indicating the positives materially outweigh the transitory challenges.

Positive Updates

Record Annual Sales
Reported sales of over $1.8 billion for FY '26, with constant currency revenue growth of 9.7% and reported AUD revenue growth of 6.7% (FX dampening effect). Second half strengthened to double-digit growth in constant currency.

Negative Updates

Compressed FY Gross Margin vs Prior Year
Full-year gross margin declined slightly to 36.0% from 36.6% the prior year. While second‑half margin improved to 36.8%, the year reflected headwinds from tariffs and Middle East conflict‑led inflation in transport and materials.

Company Guidance

Management gave no numeric FY‑27 targets on the call, saying formal guidance will be provided with the FY‑27 first half results, but outlined the planning assumptions and financial capacity: the group starts FY‑27 in a net cash position of $104.4m with significant unused debt facilities and will continue to use cash flow and the balance sheet to invest in growth assets and inventory as a mitigant to uncertainty. They noted FY‑26 delivered sales of over $1.8bn, EBIT of $207m (in line with budget/guidance), FY‑26 gross margin 36.0% (H2 margin 36.8% vs FY‑25 36.6%), global constant‑currency revenue growth 9.7% (reported AUD growth 6.7%), and highlighted structural tailwinds to FY‑27 (manufacturing diversification — 85% of 120V gross profit dollars sourced outside China, localization, annualization of 300 Best Buy store‑in‑store installs) while flagging material downside risks from a fluid U.S. tariff outlook and oil‑related inflation; they also said the IEEPA cash refund of $59.6m and related $55.2m provision leave only a minimal net FY‑26 profit impact.

Breville Group Financial Statement Overview

Summary

Strong operating profile supported by steady revenue growth (with a sharp acceleration in 2026), healthy profitability, and a conservative, improving balance sheet with very modest leverage and strong ROE. Offsetting factors are meaningful gross-margin variability and volatile operating/free-cash-flow conversion across years.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue1.81B1.81B1.70B1.53B1.48B1.42B
Gross Profit347.45M347.45M620.48M556.94M287.73M296.94M
EBITDA243.61M207.90M269.55M243.40M214.69M186.13M
Net Income138.13M138.13M135.85M118.51M110.21M105.72M
Balance Sheet
Total Assets1.72B1.72B1.48B1.34B1.37B1.18B
Cash, Cash Equivalents and Short-Term Investments193.36M193.36M105.74M137.77M84.16M168.26M
Total Debt153.42M153.42M118.46M155.98M280.49M222.16M
Total Liabilities656.76M656.76M507.50M492.86M605.19M564.74M
Stockholders Equity1.06B1.06B973.71M848.21M769.66M614.42M
Cash Flow
Free Cash Flow176.80M176.80M71.07M240.50M37.01M-84.84M
Operating Cash Flow220.66M220.66M171.47M302.62M90.25M-42.15M
Investing Cash Flow-90.44M-90.44M-100.21M-61.86M-132.85M-42.65M
Financing Cash Flow-41.14M-41.14M-106.31M-186.41M-48.88M121.53M

Breville Group Technical Analysis

Technical Analysis SentimentNegative
Last Price30.58

Price Trends

50DMA30.94Negative
100DMA31.41Negative
200DMA30.34Positive

Market Momentum

MACD-0.01Positive
RSI46.44Neutral
STOCH22.37Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BRG, the sentiment is Negative. The current price of 30.58 is below the 20-day moving average (MA) of 30.88, below the 50-day MA of 30.94, and above the 200-day MA of 30.34, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 22.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BRG.

Breville Group Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

AU:BRG against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
AU:BRGAU:BRG72OutperformAUD 4.46B31.8513.12%1.24%6.74%1.18%
AU:KGNAU:KGN69NeutralAUD 376.41M34.6523.74%4.06%4.64%―
AU:JBHAU:JBH68NeutralAUD 7.97B16.2729.54%4.62%4.82%5.95%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
AU:HVNAU:HVN60NeutralAUD 5.15B9.6010.78%6.56%4.65%2.02%
AU:TPWAU:TPW51NeutralAUD 615.37M147.903.54%―10.63%-62.61%
AU:MYRAU:MYR45NeutralAUD 345.55M-1.28-36.45%7.50%11.98%3.09%

* Consumer Cyclical Sector Average

Performance Comparison

-50%0%50%AU:BRGAU:HVNAU:KGNAU:TPWAU:MYRAU:JBHDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
AU:BRG and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
AU:BRGBreville Group Limited30.581.354.61%
AU:HVNHarvey Norman Holdings Ltd4.13-2.80-40.38%
AU:KGNKogan.com Ltd.3.940.9330.85%
AU:TPWTemple & Webster Group Ltd5.28-18.45-77.75%
AU:MYRMyer Holdings Limited0.20-0.18-47.92%
AU:JBHJB Hi-Fi Limited72.88-26.15-26.41%

Breville Group Corporate Events

Breville refreshes board as long-serving director retires

Aug 18, 2026

Breville Group has announced a board reshuffle, with long-serving director Dean Howell set to retire at the conclusion of the company’s annual general meeting on 5 November 2026. Howell, who spent 18 years on the board, was credited by chair Ti...

Breville Releases FY26 Full Year Investor Presentation

Aug 18, 2026

Breville Group has released its full year investor presentation for the financial year ended 30 June 2026.The presentation, authorised by the board, provides the market with detailed information on the company’s FY26 performance, offering inves...

Breville Declares Interim Dividend of AUD 0.19 Per Share

Aug 18, 2026

Breville Group Limited has declared an interim dividend of AUD 0.19 per ordinary fully paid share, relating to the six-month period ended 30 June 2026. The record date is set for 11 September 2026, with the stock trading ex-dividend from 10 September...

Breville files 2026 corporate governance disclosures with ASX

Aug 18, 2026

Breville Group has lodged its Appendix 4G with the ASX, outlining where investors can find the company’s corporate governance statement for the year ended 30 June 2026. The statement, included in the 2026 annual report and approved by the board...

Breville posts higher 2026 revenue and profit, keeps dividend steady

Aug 18, 2026

Breville Group has reported a solid financial performance for the year ended 30 June 2026, with total sales revenue rising 6.7% to A$1.81 billion and net profit after tax increasing 1.7% to A$138.1 million. Earnings per share edged up 1.2% to 95.5 ce...

Breville Performance Rights Lapse After Unmet Conditions

Jul 3, 2026

Breville Group Limited has disclosed that 19,368 performance rights, previously on issue under its equity arrangements, have lapsed after the applicable vesting conditions were not met or became incapable of being satisfied. The lapse marginally redu...

Breville Reshapes Company Secretary Roles to Strengthen ASX Governance

Jul 1, 2026

Breville Group has announced a change in its corporate governance team, with Craig Robinson stepping down from his role as company secretary effective 1 July 2026. The board has appointed Luxmy Wigneswaran as a new company secretary alongside existin...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 20, 2026