Brambles Ltd's stock plummeted 13.39% during intraday trading on Monday after the global pallet supplier lowered its annual financial guidance.

The company cut its FY26 sales revenue growth guidance to 2-3% from 3-4% previously, and reduced its underlying profit growth forecast to 3-5% from 8-11%. Brambles cited struggles with U.S. repair capacity constraints as customers demand higher-quality pallet repairs for automated systems, which has strained service centers and increased costs.

Brambles expects a US$60 million earnings impact in FY26 from these U.S. repair issues and is purchasing about 2 million new pallets in the fourth quarter at a cost of approximately $60 million to address the constraints. The company said these issues should be resolved by the end of December.