Freightways Group (FRW) H2 2025 earnings summary

Executive summary

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

• 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.

• Revenue from continuing operations rose 6.6% year-over-year to $1,289,559,000.

• Net profit from continuing operations increased 12.9% year-over-year to $80,108,000.

Financial highlights

• Revenue grew 6.6% year-over-year to nearly NZD 1.3 billion ($1,289,559,000).

• NPAT increased by 12.9% to $80.1 million.

• Dividend increased 8.1% to 40c per share, with a final dividend of $0.29166667 per equity security.

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

• Net tangible assets per security decreased to $0.79 from $0.92 in the prior period.

Outlook and guidance

• Expecting revenue and earnings growth in FY 2026 as economic conditions improve, with focus on margin expansion and service quality.

• Modest improvement in volume and margin expansion anticipated, with consensus margin expansion of 70 bps seen as achievable.

• 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 customer retention and disciplined M&A.