Lindsay Australia (LAU) H1 2026 earnings summary

Executive summary

• Group revenue rose 24.8% year-over-year to $540.3 million, driven by acquisitions (notably SRT Logistics) and strong volumes in Queensland and Western Australia.

• Underlying EBITDA increased 16.0% to $66.4 million, reflecting organic growth, SRT contributions, and network diversification.

• SRT Logistics integration is ahead of expectations, delivering synergies, enhancing earnings diversification, and supporting double-digit EPS growth.

• Network expansion and facility upgrades in Perth and Adelaide support scalable, counter-seasonal growth.

• Investment in safety, people, and systems led to a 30% reduction in lost time injuries and improved LTIFR to 12.9.

Financial highlights

• Underlying NPAT was $15.8 million, broadly flat year-over-year, while reported NPAT was $12.9 million.

• Underlying EPS dropped 14% due to share issuance for SRT, but pro forma EPS (including SRT for 12 months) rose 13% year-over-year.

• Fully franked interim dividend of 2.1 cents per share declared, payout ratio 59.2%.

• Invested capital reached $425 million, up 47.2% year-over-year, reflecting acquisitions and network investments.

• Operating cash conversion was 28% in 1H, impacted by working capital and tax timing; FCF expected to normalise in 2H.

Outlook and guidance

• Medium to long-term fundamentals remain strong, supported by population growth, horticultural expansion, and higher freight demand.

• Focus on margin improvement, disciplined growth, and free cash flow as capital intensity moderates.

• Near-term trading conditions remain competitive, with ongoing pricing pressure and elevated operating costs.

• Expectation to deliver over $1 billion in revenue for FY 2026.