ALS (ALQ) H2 2025 earnings summary

Executive summary

• FY25 revenue grew 16% to AUD 3 billion, with underlying EBIT up 4.7% to AUD 515 million, reflecting business resilience and diversification.

• EBIT margin (ex-acquisitions) was 19.1%, or 17.2% including recent acquisitions.

• Strong cash conversion at 95% of underlying EBITDA, with free cash flow up 13.1% to AUD 590.6 million.

• Major AUD 350 million equity raise announced to fund lab network expansion and future organic growth.

• Health and safety performance ahead of industry benchmarks, with TRIFR at 0.94 and LTIFR at 0.31.

Financial highlights

• Underlying revenue reached AUD 2,999.4 million (+16%), with 4.9% organic growth.

• Underlying EBIT increased 4.7% (7.7% at constant currency); EBIT margin (ex-acquisitions) at 19.1%.

• Underlying NPAT declined 1.4% to AUD 312.1 million, but up 2.8% at constant currency; statutory NPAT surged to AUD 256.2 million due to absence of prior year impairments.

• Final dividend declared at 19.7 cps (30% partially franked), total DPS 38.6 cps, payout ratio at 60%.

• Leverage at 2.3x, expected to reduce to 1.7x post-equity raise; debt maturity extended to 4.7 years.

Outlook and guidance

• Targeting 5%-7% organic revenue growth and margin expansion in FY26.

• On track for FY27 targets: revenue of AUD 3.3 billion, EBIT of AUD 600 million, and EBIT margin floor of 19% (ex-acquisitions).

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

• No material input cost impact expected from announced tariffs; macroeconomic uncertainty remains.

• Life Sciences legacy business targeting 20-40bps margin expansion, excluding Mexico regulatory impact.