Mainfreight has reported a strong lift in net profit for the year to March 31, up 31% to $274.3 million, despite challenging conditions in several key markets.
The increase came off the back of a solid performance from the company’s Australian operations, which are now the group’s largest revenue and profit contributor. The result compares to a lower prior-year figure affected by a one-off tax adjustment.
Revenue rose 11% to $5.24 billion, while profit before tax declined 3% to $383.6m. Adjusting for foreign exchange, revenue was up 9% and profit before tax was down 4%.
“This is a satisfactory result, assisted by a pleasing performance from our Australian operations,” the company says.
Operating cash flows increased from $505m to $584m, and the board has approved a final dividend of 87 cents per share, bringing the full-year dividend to 172 cents —unchanged from last year.
Despite volume growth across all divisions — transport, warehousing and air & ocean —margin performance was described as “poorer than expected,” due to intense competition and rising property costs.
The company noted that ongoing tariff uncertainty from the United States was prompting supply chain disruption and variable trade lane pricing.
“Ongoing uncertainty is likely to result in fluctuating freight volumes, and inconsistent trade lane pricing in the immediate future,” it says.
Mainfreight says it remains well positioned to assist customers through disruption and would continue to invest in infrastructure—albeit with a more cautious approach. Planned capital expenditure through to 2027 is expected to reach $450m.
New Zealand
Revenue rose 3.1% to NZ$1.16b, but profit before tax fell 9.5% to NZ$134.5m.
“This is a disappointing result from our New Zealand business this year,” it says.
Mainfreight cited increased property costs and lower transport and air and ocean margins, although warehousing delivered an improved result.
New transport capacity was added in Auckland, Hastings and Whanganui, while inter-island freight continues to be hampered by “poor KiwiRail services” and limited ferry capacity.
“Less than desired rail ferry capacity will continue to provide challenges for the next four years for freight movements between the North and South Islands until new ferries are delivered,’ it says.
Australia
Revenue jumped 16.5% to AU$1.51b, with profit before tax up 7% to AU$137.4m.
“This has been a record breaking result from our Australian region and it is now the largest revenue and profit performer in the group.”
Growth was led by strong LTL transport gains, improved warehousing utilisation, and large air and ocean project shipments. New facilities are underway in Brisbane and Townsville.
Americas
Revenue rose 4.2% to US$665.8m, but profit before tax slumped 30% to US$15.2m.
“The Americas continues to be our worst performing region due to a poorer than expected transport result.”
Air and ocean showed improvement, while warehousing demand in Canada is rising due to tariff impacts. Transport remains under pressure despite new cross-dock investments in Dallas and Chicago.
Asia
Revenue grew 30.8% to US$126.2m while profit before tax declined 29.4% to US$9.8m.
“It was a disappointing result from our Asian businesses where, despite pleasing revenue growth, our margins were impacted by falling sea freight rates.”
Mainfreight is shifting focus toward Europe and Australasia routes and reviewing its warehousing operations in the region.
Europe
Revenue rose 8.2% to €602.8m and profit before tax increased 11% to €31m.
“There was a satisfactory performance from our European operations,” the company says.
Transport and air & ocean showed improvement, but warehousing remains under-utilised. The company expects further growth from new sites in the UK, Germany, and across Eastern Europe.
Outlook
Mainfreight said it was “reasonably satisfied” with the result given the operating environment and remains optimistic about growth opportunities across all regions.
“We continue to be positive with the opportunities available to us in every region we operate in.”
The company says it expects continued network expansion and infrastructure investment to support long-term growth, particularly as customers seek to diversify their supply chains amid geopolitical shifts.
Mainfreight will report its next interim result on November 12.
Freight Volume Analysis – FY25 v FY24
Total air freight kilos up 8%
Total sea freight TEUS up 6%
Total domestic transport tonnes up 3%
Total warehouse orders picked up 2%
