Freightways Group (FRW) H2 2025 earnings summary

Executive summary

• Achieved strong results despite challenging economic conditions, leveraging a diversified business model for resilience and growth opportunities across all business lines, with New Zealand in recession and Australia performing better.

• Well-positioned balance sheet and proven capital allocation support risk mitigation and growth, particularly in Australia.

• Focused on organic growth, market share gains, and disciplined M&A, especially in Australia.

Financial highlights

• Revenue grew 6.6% year-over-year to $1.3 billion.

• NPAT increased by 12.9% to $80.1 million; basic EPS up 12.3% to 44.7c.

• Dividend increased 8.1% to 40c per share, reflecting balance sheet strength and optimism.

• EBITA up 6.3% to $158.4m; EBITA margin stable at 12.3%.

• Strong operating cash flow enabled debt reduction and higher dividend payout.

Outlook and guidance

• Expecting revenue and earnings growth in FY 2026 as economic conditions improve, with modest volume and margin expansion anticipated.

• Targeting to double earnings in the waste renewal division over the next two years, with a significant portion in the coming year.

• Continued focus on service quality, customer retention, and disciplined M&A.