ALS (ALQ) H1 2026 earnings summary

Executive summary

• Revenue grew 13.3% to AUD 1.7 billion ($1,659.6 million), with 6.9% organic growth and positive FX impact; all business streams contributed, led by Commodities and Life Sciences.

• Underlying EBIT rose 14.7% to AUD 287.2 million, with margin up 20 bps to 17.3%; underlying NPAT increased 17.2% to AUD 178.4 million; statutory NPAT up 11.8% to AUD 141.7 million.

• Free cash flow was AUD 303.9 million (88% of underlying H1 EBITDA), up 10.8% year-over-year.

• Interim dividend of AUD 0.194 per share (19.4 cps) declared, up 2.6%-3%, with a 55% payout ratio.

• Digital and AI investments advanced, and balance sheet strengthened with reduced net debt and liquidity exceeding $550 million.

Financial highlights

• Underlying EBIT: AUD 287.2 million, up 14.7%; EBIT margin at 17.3% (19.1% excluding acquisitions).

• Underlying EPS: 35.7 cps, up 13.7%; statutory EPS: 28.4 cps, up 8.4%.

• Underlying ROCE steady at 19.4%; EBITDA cash conversion at 88%.

• Leverage reduced to 1.8x; EBITDA interest cover at 10.2x; weighted average debt maturity 4.4 years, 83% of debt fixed at ~3.7%.

• CapEx was AUD 89 million (5.4% of revenue), with two-thirds for growth; total capex $156.8m including hub upgrades.

Outlook and guidance

• FY26 organic revenue growth guidance raised to 6%-8% (from 5%-7%), with margin improvement expected.

• Commodities organic revenue growth guidance increased to 12%-14% for FY26; Life Sciences revised to 4%-6%.

• FY27 targets: revenue AUD 3.3 billion, underlying EBIT AUD 600 million, EBIT margin floor 19%.

• Underlying NPAT phasing expected to be 48% H1 / 52% H2.

• Group targeting continued margin improvement and strong cash generation.