LGI (LGI) H1 2026 earnings summary

Executive summary

• Statutory EBITDA rose 33.1% year-over-year to $9.66M, with NPAT up 28.4% to $3.08M for H1 FY26, reflecting strong operational and financial performance across all divisions.

• Revenue from ordinary activities increased 20.2% to $20.32m, with net revenue up 21% to $18.83m, driven by higher volumes in electricity, LGCs, and ACCUs.

• Successfully completed ~$56M capital raise, enabling full debt repayment, strengthening the balance sheet, and funding expansion beyond 80MW capacity.

• Expanded contracted site portfolio to 36, with two new landfill gas rights contracts and three new gas collection systems completed.

• Major battery and hybrid projects, including Canberra (Mugga Lane), Belrose, and Nowra, are progressing through regulatory approvals and commissioning.

Financial highlights

• Gross profit rose 26% to $15.5M, with gross margin expanding to 76% (up 94 bps), and EBITDA margin improved to 51%.

• Depreciation and amortization rose 43% due to new asset commissioning.

• Interest expense increased for part of the period but was eliminated after debt repayment post-capital raise.

• Diluted EPS up 22% to 3.3 cents; interim fully franked dividend increased to 1.25 cents per share.

• Operating cash flow decreased 22.8% to $4.84m due to higher tax payments and ACCU cash conversion delays.

Outlook and guidance

• Reaffirmed full-year EBITDA guidance for FY26, expecting a 25%-30% increase over FY25, subject to market and operational factors.

• Anticipates a seasonally stronger second half, with new projects and increased trading capacity contributing to results.

• Continued investment in gas capture infrastructure and expansion of renewable generation and carbon abatement capacity.

• Guidance incorporates conservative assumptions for new battery contributions and market volatility.