Freightways Group (FRW) H1 2026 earnings summary

Executive summary

• Delivered strong first half FY26 performance with 8.5% revenue growth to $718.2 million and 17.2% NPAT growth to $52.5 million, supported by margin recovery and operational efficiency.

• Consistent performance across divisions, with improved Q2 volumes in NZ Express and Temperature Controlled transport as economic conditions improved.

• Focused on niche market leadership, competitive service, and gradual volume recovery as economic conditions improve.

• Higher demand for economy over premium services, and acquisition of VTFE in Australia adds a complementary B2B express service.

• Cash generation was robust, reducing net debt and interest costs, supporting higher NPAT.

Financial highlights

• Revenue up 8.5% year-over-year to $718.2 million.

• EBITA increased by 12.7% to $96.5 million; EBITA margin improved to 13.4% from 13.0%.

• NPAT rose 17.2% to $52.5 million; basic EPS up 17.2% to 29.3cps.

• Interim dividend increased to 21c per share, fully imputed in NZ and 46% franked in Australia.

• Strong cash flow enabled significant debt repayment, reducing gearing and net debt.

Outlook and guidance

• Expecting steady improvement in same-customer volumes in H2 FY26, especially in New Zealand.

• Margin improvement initiatives ongoing across all businesses, with Shred-X and Big Chill highlighted for further gains.

• Proactive M&A focus on complementary opportunities in the Australian express network.

• Focus on customer retention, new business, and disciplined M&A to grow the Australian express network.