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 organic and inorganic growth, disciplined M&A, and niche market leadership, with a strong balance sheet.

• Higher demand for economy over premium services, especially in NZ, and expansion of B2B express services in Australia through the VTFE acquisition.

Financial highlights

• Operating revenue increased 8.5% to $718.2m; EBITA up 12.7% to $96.5m; NPAT up 17.2% to $52.5m; basic EPS up 17.2% to 29.3cps.

• EBITA margin improved to 13.4% from 13.0% year-over-year.

• Cash generated from operations up 28.3% to $134.2m; net debt reduced by 6.7% to $587.1m.

• Interim dividend increased by 10.5% to 21c per share, fully imputed in NZ and 46% franked in Australia.

• Strong cash flow enabled significant debt repayment, reducing gearing and supporting further acquisitions.

Outlook and guidance

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

• Ongoing focus on margin improvement, leveraging service quality, and cost base stabilisation.

• M&A focus narrowed to targets complementary to VTFE and Allied Express, with disciplined approach.