Lindsay Australia (LAU) H1 2025 earnings summary

Executive summary

• Revenue increased up to 4.3% year-over-year, reaching as high as $435.7 million, driven by strong Rural division performance and additional WB Hunter trading, but underlying EBITDA declined 9.2% to $47.3 million due to cost escalation, competition, and weather disruptions.

• Profit after tax/underlying NPAT declined to as low as $14.7 million, reflecting higher costs, increased depreciation, and challenging trading conditions.

• Interim dividend increased 9.5% to 2.3 cents per share, fully franked, with a payout ratio of 46%.

• Strategic expansion included the acquisition of GJ Freight in WA, new rural store acquisitions, and network growth in the Goulburn Valley.

• Market conditions remain challenging, especially in refrigerated transport, with no clear timeline for normalization.

Financial highlights

• Revenue rose up to 4.3% year-over-year, reaching as high as $435.7 million.

• Underlying EBITDA declined 9.2% to $47.3 million.

• Profit after tax/underlying NPAT was as low as $14.7 million, down up to 19.6% year-over-year.

• EPS for the half was as high as 5.0 cps, down from 6.3 cps in the prior period.

• Rural division sales up 7.5% to $85.1 million; underlying profit/EBITDA up 13.8% to $4.8 million.

Outlook and guidance

• No clear visibility on market normalization; operational headwinds expected to persist due to capacity expansion, pricing pressure, weather, and subdued demand.

• Focus remains on operational execution, network growth, transformation, and sustainability.

• Expectation for improved cash conversion in H2, targeting 75% for the full year.

• Strong balance sheet supports ongoing organic growth and strategic acquisitions.