Freightways Group (FRW) H2 2026 earnings summary

Executive summary

• Achieved strong double-digit growth in revenue (up 13.5%) and NPAT (up 17.3%) year-over-year, driven by price increases, market share gains, and organic growth, despite a challenging economic environment and late-year demand softness from fuel prices and geopolitical events.

• Australia now represents 39–40% of revenue and profit, up from a third two years ago, reflecting a strategic shift in business focus.

• Margin improvement and operational efficiency remain key focuses, with mixed results across business units.

• Economic recovery in New Zealand was halted by the war in the Middle East and a spike in fuel prices, impacting consumer demand and volumes.

Financial highlights

• Revenue increased 13.5% year-over-year to NZD 1,463.6m, with the VTFE acquisition contributing NZD 40m over five months.

• EBITA rose 14.6% to NZD 181.6m, with EBITA margin improving to 12.4%.

• NPAT up 17.3% to NZD 94m; basic EPS up 17.2% to 52.4cps.

• Net debt/EBITDA stable at 2.4x post IFRS 16, providing significant headroom for further investment.

• Dividend increased by 12.5% to NZD 0.45 per share for the year.

Outlook and guidance

• Expect continued softness in same customer volumes as long as fuel prices remain elevated.

• Recovery pace will depend on economic conditions and fuel price normalization in both Australia and New Zealand.

• Margin improvement, organic growth, and disciplined M&A remain priorities, with ongoing investment in automation and capacity expansions in Christchurch and Palmerston North.

• No formal guidance provided due to economic uncertainty, especially after recent geopolitical events.