LGI (LGI) H2 2025 earnings summary

Executive summary

• Statutory and underlying EBITDA grew 14% to $17.4M, near the top end of guidance, with strong operational performance, record biogas recovery, energy creation, and ACCU generation.

• Operating cash flow rose 24% to $12.3M, with capex of $18.6M funded by $9.2M free cash and $9.4M debt.

• Signed six new contracts, including five long-term biogas rights and a major 12MW/24MWh battery project at Belrose, expanding the development pipeline to 56MW and contracted sites to 34.

• Achieved zero lost time injuries, improved asset availability, and disciplined cost control, with biogas recovery up 11%, ACCU creation up 14%, and electricity generation up 13%.

• Fully franked dividend of 2.5 cents per share for FY25.

Financial highlights

• Net revenue increased 10% year-over-year to $33.9M, with electricity and ACCU revenues contributing 83% of total revenue.

• EBITDA margin improved to 51.2%, EBIT margin stable at 32.1%, and operating cash flow conversion rose to 70.9%.

• EBIT increased by 10%, with EBITDA and EBIT margins maintained or improved; EBITDA margin up 3%.

• LGC revenues increased 39% year-over-year, making up 11% of total revenue, with an average price of $35.88 and 75% of FY26 volume hedged.

• Dividend per share increased 4.2% to 2.5 cents.

Outlook and guidance

• FY26 EBITDA expected to grow 25–30% over FY25, driven by full-year contributions from new assets and projects, subject to market and project timing.

• Priorities include delivering Canberra and Belrose battery expansions, expanding power stations, and pursuing new landfill gas and battery opportunities.

• Anticipates further increases in ACCU creation and energy output as new sites and battery projects come online.

• Project timing and market dynamics, including regulatory approvals, may impact delivery.