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Brambles Ltd
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About Brambles Ltd
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FUND MANAGER
DATE
24 Aug 2026
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The entries below are records originating from third-party statements. Thesis Tracker does not rank, recommend or endorse any fund manager, fund or security. Investment decisions should be made on the basis of the relevant Product Disclosure Statement and, where appropriate, advice from a licensed adviser.
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Frequently asked questions about Brambles Ltd (ASX:BXB)
Frequently asked questions
Who is investing in Brambles Ltd (ASX:BXB)?
Fund managers including Cooper Investors, Equity Trustees Asset Management, Blackwattle Investment Partners, Antares Capital, Wilson Asset Management, Infinity Asset Management, Pendal Group, Australian Eagle Asset Management, Paradice Investment Management, Ellerston Capital, Oracle Advisory Group, Solaris Investment Management, Investors Mutual Limited, Ten Cap, Yarra Capital Management, Firetrail Investments, Bennelong Australian Equity Partners, Alliance Bernstein and First Samuel have invested in Brambles Ltd (ASX:BXB).
What opportunities or catalysts do fund managers highlight for Brambles Ltd?
Fund managers have flagged several growth levers for Brambles. Infinity Asset Management, commenting around August 2025 when shares were about $26.02, held the stock overweight after a FY25 result showing margin expansion, NPAT and EPS beats, strong free cash flow and a dividend above consensus, with FY26 NPAT growth guided at 8-11%. Australian Eagle Asset Management (October 2025, ~$24.86) increased its holding, citing a turnaround that has reduced costs and capex while lifting margins and shareholder returns. Paradice Investment Management (March 2026, ~$22.60) held Brambles for its growing earnings and free cashflow generation, while Ellerston Capital (April 2026) reintroduced a position in a company it knew well, and Oracle Advisory Group (December 2025) added it for defensive portfolio exposure. After a sharp guidance downgrade and share price fall in May 2026 (~$16.80-17.25) tied to US pallet repair capacity constraints, several managers saw the sell-off as overdone: Investors Mutual called the price drop an “extreme over-reaction,” citing retailers’ growing need for high-quality pallets in automated warehouses, Ten Cap said the “longer-term thesis remains intact” given pricing power, and Blackwattle and Ellerston added to or retained positions citing the structural quality of the pooled pallet network and a new US$400 million buyback. Investors Mutual (June/July 2026) further topped up, viewing the network issues as transitory and pointing to Brambles’ 80% defensive customer categories, 17x PE valuation, and continued investment in pallet turns and digitisation.
What are the key risks to the Brambles Ltd investment thesis, according to fund managers?
The dominant risk theme is the US pallet repair network disruption disclosed from May 2026. Pendal Group detailed an estimated US$60 million earnings hit from repair capacity constraints in the US subcontracted service centre network, caused by subcontractor turnover, labour availability issues and higher pallet-quality requirements, plus a further $15 million negative impact from deteriorating European conditions; FY26 guidance was cut from 8-11% to 3-5% underlying profit growth and revenue guidance trimmed to 2-3%. Yarra Capital Management (cautious, later underweight) flagged risk that slower revenue growth could extend into FY27, risk to market-share gains as disruptions make it harder to win new customers, margin pressure from difficulty passing through price increases, and a valuation (18x forward earnings) offering little margin of safety. Blackwattle warned of ongoing costs to improve pallet quality, expand repair capacity and rebuild customer trust, plus a margin headwind from losing smaller customers. Firetrail exited the position, seeing “downside risk to FY27 earnings” and believing the issues could be more persistent than the market expects, while Alliance Bernstein exited on emerging earnings risk and the potential need for sustained cost investment. Wilson Asset Management raised management credibility/governance concerns, saying leadership was not “totally honest” about the surprise cost increase, putting the stock “in the sin bin” pending clarity.
What is the short interest in Brambles Ltd (ASX:BXB)?
The short interest in Brambles Ltd (ASX:BXB) is 0.24% which makes it the 342nd most shorted stock on the ASX. Of the 1.4B shares that Brambles Ltd has on issue, 3.3M have been sold short.
What does Brambles Ltd (ASX:BXB) do?
Brambles Ltd. provides reusable supply chain logistics solutions, specializing in pallets and containers via its CHEP brand. The company operates through four segments: CHEP Americas, CHEP EMEA, CHEP Asia-Pacific, and Corporate. Operations span North America, Latin America, Europe, the Middle East, Africa, India, Australia, New Zealand, and Asia. The Corporate segment includes the BXB Digital unit. Founded in 1875 by Walter Edwin Bramble, Brambles Ltd. is headquartered in Sydney, Australia.