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Australian Agricultural Company (ASX: AAC), the nation's largest beef producer, has delivered a record full-year operating profit of $71.6 million, defying the North Queensland flood disaster earlier this year that led to the loss of 7,000 head of cattle and stripped $9 million from earnings.
The FY26 result for the year to the end of March is 23 per cent up on FY25, supported by a 9 per cent increase in revenue to $422.1 million.
Revenue growth was driven by an 8 per cent increase in branded beef average prices and a 17 per cent lift in cattle sales prices.
The underlying profit increase also led to a sharp turnaround for AACo's bottom line as net profit after tax surged to $107.3 million from a $1.1 million loss in FY25.
The turnaround was underpinned by a $128.6 million unrealised herd fair-value gain, while net tangible assets rose 15 per cent to $2.92 per share.
Floods inundated parts of AACo's North Queensland cattle stations in early 2026, killing around 7,000 head valued at $13 million.
The company absorbed $2.9 million in incremental operating costs on top of the market-value attrition from the lost animals.
The total statutory flood impact reached $15.8 million, though the $9 million figure represents the hit to operating profit after accounting adjustments.
AACo CEO David Harris says the result shows the company is on a "positive path" under its new strategy which includes driving agricultural innovation to improve productivity.
“We are already seeing progress as we deliver our strategic focus areas - Better Beef, Partner and Invest, and Unlocking the Value of the Land,” says Harris.
“The company’s results over recent years demonstrate its trajectory of growth that we will aim to continue building on as we move into the new year.”
AACo's branded beef business continued to drive the top line, with branded sales accounting for the bulk of the revenue uplift.
The company's Westholme and Darling Downs branded ranges commanded higher average prices as demand for premium Australian beef held firm across export markets.
Cattle sales prices jumped 17 per cent, reflecting broader strength in the Australian cattle market through much of the financial year, though conditions have since shifted.
Data from Elders published in April shows cattle prices slumping between 7 and 20 per cent on heavy drought-driven turnoff from NSW, while grain costs have climbed 22 per cent.
AACo has flagged several headwinds for FY27, including Middle East conflict driving up energy, transport and production costs.
The company also faces broader market uncertainty as safeguard tariff triggers on beef exports to China and Korea are expected to come into effect mid-year, potentially weighing on export returns.
However, AACo says it continues to manage a dynamic operating environment in Australia and internationally.
"AACo is managing its fuel reserves, working with supply chain partners and considering a range of essential and non-essential operational and commercial activities in response," says the company.
"Demand for protein continues to grow around the world and AACo is well positioned to take advantage of emerging opportunities, with a good reputation for providing high-quality products, consistently and at scale."
The company's strong NTA growth to $2.92 per share, up from $2.54 in FY25, reflects both the herd revaluation and underlying operational gains across AACo's 6.4 million hectare cattle station portfolio spanning Queensland and the Northern Territory.
AACo is Australia's largest integrated cattle and beef producer, tracing its origins to 1824.
The company runs a herd of more than 350,000 cattle across its network of properties and feedlots, supplying branded beef products to domestic and international markets including Japan, Korea, the Middle East and South-East Asia.
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