LGI (LGI) H1 2025 earnings summary

Executive summary

• Revenue increased 6.7% to $16.9M for H1 FY25, with net revenue up 5.4% to $15.6M, driven by higher ACCU prices, increased generation capacity, and record biogas recovery.

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

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

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

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

Financial highlights

• Statutory revenue rose 6.7% to $16.9M; net revenue up 5.4% to $15.6M; gross profit up 6.7% to $12.3M.

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

• Operating cash flow conversion remained robust at 86.2%, supporting ongoing capital investments.

• CapEx for H1 FY25 was $10.3M (70% of revenue), funded by operating cash flow and moderate debt increase.

• 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%, subject to market dynamics and project timing.

• Expect electricity revenue to increase in H2 as Mugga Lane and Eastern Creek operate at full capacity.

• Continued focus on safety, quality, and environmental outcomes, with strategic projects and business development as priorities.