Back in February, CSL announced that Dr Paul McKenzie would retire as chief executive after three years in the job, effective the same day. Gordon Naylor, a 33-year CSL veteran, former chief financial officer and former Seqirus president, stepped in as interim CEO the next day while the board runs what it calls “a global search” for a replacement.
CSL then said in its 11 May update that the search was “progressing as planned”, and the chair’s statement in the annual report, lodged with the 18 August results, upgraded that to “well-advanced”.
The shares have done plenty in the meantime. CSL closed at $92.24 on 3 June, its low for the year. By 24 August it was $169.11, up 83% from that close, including a 17.3% jump on results day alone.
What the next CEO inherits
The FY26 result means the new boss walks into is a reset. Revenue of US$15.8 billion was down 1% in constant currency, underlying NPATA of US$3.1 billion down 2%, and the statutory bottom line swung to a US$2.6 billion loss after US$7.1 billion of pre-tax impairments and US$799 million of pre-tax restructuring costs. The dividend held flat at US$2.92 for the year, and CSL announced a further A$1.1 billion buyback for FY27, guiding to underlying profit growth of about 5% at constant currency.
One folder that will be on the CEO’s desk when they start will be that of Seqirus. CSL announced in August 2025 that it intended to demerge its flu vaccines business as a separate ASX company, then told last October’s AGM it was no longer targeting completion in FY26, with timing to be revisited “when we are confident that market conditions would support the maximisation of shareholder value”.
The May update had the internal operational separation on track for 1 July, and the results presentation now marks it complete. On the demerger itself, the FY26 materials said nothing further. Deciding whether and when that demerger happens will be one of the first calls on the next chief executive’s desk, alongside a planned US plasma manufacturing expansion of about US$1.5 billion.
The predictions
On this week’s Switzer Show, Jun Bei Liu, founder and lead portfolio manager of Ten Cap, argued the stock had already done the hard part of the repair before a name is even announced.
“The result was okay. It [was] just better than expected. And then they upgraded… the next year’s… earnings, so they can grow at 2% instead of flat… It was oversold. It shouldn’t have gone to 13 times earnings. And now it just rerated back to 18 times earnings for a couple percent growth.”
The multiples are her numbers, not CSL’s.
On the succession itself, she put a clock on it that the company hasn’t:
“Now the next big catalyst is the CEO. I’ve been told probably another month that we’ll hear about who the CEO is… I think it’s more likely someone who… will buy into the strategy and… continue the recovery path. So it looks pretty good at this stage. It doesn’t look expensive.”
She also named the flow behind the rebound: “The passive buying is huge. And then you can actually see that… the passive has been selling the CBA and buying the CSL and the BHP.”
Start the clock.
Prices as at the 24 August 2026 close; company facts from CSL’s ASX announcements of 19 August 2025 and 10 February, 11 May and 18 August 2026, and its 2025 AGM materials. This article does not take into account the investment objectives, financial situation or particular needs of any individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances. Before acting on anything we discuss, we strongly recommend you seek the appropriate professional advice.
