Scales Corporation at $6.16: A Record Year, and Why Guidance Points Lower

Scales Corporation just delivered a record result, with revenue up 54% and underlying profit up 45%, and the SCL.NZ stock has climbed to within touching distance of its 52-week high. So here is the puzzle: the company's own guidance for the year ahead points to lower profit, not higher. Understanding why is the key to understanding this stock.

Scales is a New Zealand agribusiness with a wider reach than most investors realise. It runs three core divisions: Horticulture (best known as the country's largest apple grower and exporter, trading under the Mr Apple brand), Global Proteins (a fast-growing ingredients and pet-food protein business), and Logistics (cold storage and supply-chain services). It sells food and food ingredients into New Zealand, Asia, Europe, and North America.

Recent Performance

As of early May 2026, SCL traded around $6.16, near the upper end of a 52-week range of roughly $4.00 to $6.34. That is a strong 12 months. The stock has roughly tracked the company's improving fundamentals, and the market has clearly rewarded the record 2025 result.

The question now is whether a stock near its highs can keep climbing when management itself is signalling a softer year.

Key Metrics

The figures that frame the case:

• •Share price: around $6.16 NZD
• •Annual dividend: about 24 cents per share, a yield near 3.9%, paid semi-annually
• •FY2025 revenue: $899.9 million, up 54%
• •FY2025 underlying net profit: $77.6 million, up 45%

A word on the profit figures, because they matter here. Scales reported two profit numbers for 2025: an underlying net profit of $77.6 million, and a reported net profit of $117.7 million. The reported figure was inflated by one-off items tied to acquisitions, so the underlying number is the better guide to the ongoing earning power of the business. Always check which profit figure a company is leading with; see our [methodology](/methodology) for how we treat underlying versus reported earnings.

The Big Picture

The 2025 engine room was Horticulture. The division lifted underlying EBITDA (earnings before interest, tax, depreciation and amortisation) 73% to $65.2 million, driven by higher apple export volumes, stronger average prices, and the contribution from the acquired Bostock orchards. When apple seasons line up well on both volume and price, the operating leverage in this business is substantial.

That is also the reason guidance points lower. Scales has guided FY2026 underlying net profit to a range of $50.0 million to $55.0 million, below the $77.6 million it earned in 2025. The most natural read is that 2025 was an unusually strong apple season, and management is being realistic about what a more normal year looks like. Group revenue, helped by the protein expansion, is still expected to exceed $1 billion.

The longer-term growth story sits in Global Proteins. Scales spent 2025 investing in businesses including Shelby, Meateor Australia, Fayman International, and ANZ Exports, and lifted its FY2027 underlying EBITDA target for the division from $70 million to $85 million. The strategy is to reduce reliance on the weather-exposed apple cycle by building a larger, steadier protein-ingredients business alongside it.

Investors comparing primary-sector exporters should note how much of New Zealand's apple crop moves through regional ports such as [Napier Port](/stocks/napier-port), the gateway for Hawke's Bay produce.

What to Watch

Three things will decide the next leg.

First, the apple season. Horticulture earnings swing on volume and price, both of which depend on weather and global demand. A weak season would test the bottom of the guidance range; a strong one could see Scales beat it, as it did in 2025.

Second, Global Proteins execution. The raised FY2027 target is the bull case in a single number. Watch whether the acquired businesses are integrating well and tracking toward $85 million of EBITDA.

Third, the valuation reset. With the stock near its highs and profit guided lower, the price-to-earnings ratio on 2026 earnings is meaningfully higher than on the record 2025 numbers. The market is paying for the growth strategy, not just last year's result.

The Bottom Line

The bull case for Scales is a record 2025, a credible plan to diversify away from the apple cycle through Global Proteins, and a rising long-term EBITDA target. The bear case is guidance that points to a softer 2026, a stock near its 52-week high, and a Horticulture division still at the mercy of the weather. At $6.16, investors are backing the protein growth story to carry the stock through a quieter apple year.

*This article is for informational purposes only and does not constitute financial advice. Always do your own research or consult a licensed financial adviser before making investment decisions. Figures are drawn from publicly available company disclosures and market data and may change after publication. See our [methodology](/methodology) for how we approach these articles.*