LGI (LGI) H1 2025 earnings summary

Executive summary

• Revenue increased 7% year-over-year to $16.9 million for H1 FY25, with net revenue up 5.4% to $15.6 million, driven by higher ACCU prices, record biogas recovery, and expanded generation capacity.

• Statutory and underlying EBITDA rose 3% to $7.3 million, while NPAT declined 22.5% to $2.4 million due to higher depreciation and borrowing costs.

• Major operational milestones included the Canberra power station upgrade, expansion at Eastern Creek (Bingo), and commissioning of new generation capacity.

• Secured five new landfill gas rights contracts, providing access to up to seven additional sites, and converted the Grafton site to a long-term gas rights agreement.

• Industry recognition with multiple awards for innovation and sustainability, including for the Bunya Battery and Bunya Renewable Hybrid Project.

Financial highlights

• Total revenue: $16.9 million (+7% YoY); net revenue: $15.6 million (+5.4% YoY); gross profit: $12.3 million (+6.7% YoY).

• EBITDA margin was 46.7%, down 106 bps year-over-year; EBIT margin fell to 27.1%.

• Operating cash flow conversion from EBITDA was strong at 86.2%, though cash flow decreased 17.7% to $6.3 million.

• CapEx for H1 FY25 was $10.3 million (70% of revenue), primarily funded from operating cash flow and debt.

• Interim dividend of 1.2 cents per share, fully franked, declared for March 2025.

Outlook and guidance

• FY25 underlying EBITDA expected to grow 12–15%, reaffirmed guidance, subject to market dynamics and timing.

• Electricity revenue expected to increase in the second half as Mugga Lane and Bingo/Eastern Creek operate at full capacity.

• Continued focus on safety, quality, project delivery, and business development, with significant headroom in debt facilities for growth.