ALS (ALQ) H2 2025 earnings summary

Executive summary

• Revenue grew 16% to AUD 3 billion, with underlying EBIT up 4.7% to AUD 515 million, reflecting strong Life Sciences growth and resilient Commodities performance.

• Organic revenue growth was 4.9%, with robust performance in both commodities and life sciences segments.

• Announced AUD 350 million equity raising to fund major laboratory network expansion and future growth initiatives.

• Maintained industry-leading safety performance, with TRIFR at 0.94 and LTIFR at 0.31.

• Strong cash conversion at 95% of underlying EBITDA, with free cash flow up to AUD 591 million.

Financial highlights

• Underlying revenue reached AUD 3 billion (+16%), with 4.9% organic growth.

• Underlying EBIT margin was 19.1% (excluding acquisitions), or 17.2% including Nuvisan, York, and Wessling.

• Underlying NPAT declined 1.4% to AUD 312.1 million, but increased 2.8% on a constant currency basis.

• Statutory NPAT was AUD 256.2 million, up significantly due to prior year impairments.

• Final dividend declared at AUD 19.7 per share, total DPS 38.6c, payout ratio maintained at 60%.

Outlook and guidance

• Targeting 5%-7% organic revenue growth and margin expansion in FY2026.

• Nuvisan transformation plan to deliver EUR 11 million incremental cost out in FY26, completing six months early.

• Medium-term targets: revenue of AUD 3.3 billion, underlying EBIT of AUD 600 million, and EBIT margin floor of 19% (ex-acquisitions) by FY2027.

• No material input cost impact expected from announced tariffs; macroeconomic conditions remain uncertain.

• Life sciences targeting 20-40 basis points margin improvement in legacy operations, plus further gains from acquisitions.