BXB Share Price Climbs in 2025: What's Powering This ASX 100 Industrials Giant?

July 04, 2025 05:12 PM AEST | By Team Kalkine Media

BXB Share Price Climbs in 2025: What's Powering This ASX 100 Industrials Giant? — Image source: Shutterstock

A Backbone of Global Supply Chains

Brambles operates a massive network of reusable pallets, crates, and containers through its widely recognized CHEP brand. This logistics infrastructure supports supply chains across Asia-Pacific, the Americas, and EMEA. Its revenue model is built around pallet hire—manufacturers use CHEP pallets to move goods to retailers, who then return or pass on the pallets, generating daily hire fees at each step.

This operational setup ensures a steady revenue stream tied directly to essential goods movement across multiple continents, making it a pillar of modern supply chain infrastructure.

Why Industrials Like Brambles Appeal to the Market

Brambles belongs to the broader S&P/ASX 200 Industrials Index (ASX:XNJ), which has outperformed the broader ASX 200 over the last five years—returning 7.7% compared to 7.4%. Industrials like Brambles, Transurban (ASX:TCL), and Qantas (ASX:QAN) often attract attention due to their role in providing essential services with relatively predictable income.

In Brambles’ case, its global pallet operations touch nearly every retail supply chain, offering a level of demand stability that strengthens its long-term outlook. Over the past three years, Brambles has recorded a compound annual growth rate (CAGR) of 7.6% in revenue.

A Steady Income Stream

One of the key advantages of industrials companies is the consistency in income generation, often translating into steady dividends. Brambles currently yields around 2.2%, compared to its five-year average of 2.66%. This yield compression likely reflects stronger share price performance rather than any fall in dividend payments—especially as last year’s dividend exceeded the company’s three-year average.

Reflecting on Valuation

With the share price gaining momentum, the current dividend yield sits below historical averages. While this might imply a higher valuation, Brambles’ expanding payout hints at underlying earnings strength rather than a pullback in returns.

For those exploring Australia's industrials sector, Brambles continues to demonstrate qualities that underpin long-term performance—resilient demand, global reach, and consistent income—all contributing to its recent rise within the ASX 100.

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