Freightways has reported a 17.2% rise in first-half net profit after tax of $52.5 million as revenue and margins improved across its New Zealand and Australian operations.
The NZX- and ASX-listed transport and logistics group increased revenue 8.5% to $718.2m, while earnings before interest, tax and amortisation (EBITA) rose 12.2% to $96.5m for the six months to December 31.
EBITA margin rose to 13.4% from 13% in the prior corresponding period. Basic earnings per share rose to 29.3 cents.
Freightways says economic conditions in New Zealand showed modest improvement during the half, while trading conditions in Australia remained stable. The company maintained its focus on “service quality, pricing discipline and operational efficiency, supporting continued margin recovery”.
Cash generation remained strong, with net debt reducing during the period. Lower interest costs supported the larger lift in net profit.
In the Express Package and Business Mail division, revenue and EBITA both increased, with margins improving. The company says performance was supported by same-customer volume growth, market share gains and pricing actions implemented at the start of the financial year.
In New Zealand, demand was weighted more towards economy services rather than overnight express. In Australia, Allied Express delivered strong volume growth and improved EBITA performance, reflecting improved utilisation and new business wins.
The Information Management and Waste Renewal division delivered broadly flat revenue, while EBITA grew modestly. Performance reflected lower digitisation activity and the exit of unprofitable product destruction revenue streams. The half included A$1.6m of net one-off costs that are not expected to be repeated. Secure Destruction and Medical Waste both delivered volume growth.
Freightways declared an interim dividend of 21 cents per share, up 10.5% on the prior corresponding period. The dividend is fully imputed in New Zealand and about 46% franked in Australia.
The company says its balance sheet remains well positioned to fund investment and pursue complementary acquisitions, including the recent acquisition of VTFE in Victoria, which was completed after the half year.
Looking ahead, Freightways says margin improvement “remains a priority” and cost inflation is moderate, with its cost base stabilising, particularly in labour.
The rollout of a new billing platform for its New Zealand express package businesses is continuing and is expected to support improved billing capability and pricing discipline.
“We expect a steady improvement in same-customer volumes in the second half of FY26, particularly in New Zealand, driven by a level of economic recovery,” the company says.
“Excluding one-off air network transition costs, margin improvement is expected to continue. The Group remains focused on retaining customers through service quality, attracting new business and pursuing disciplined mergers and acquisitions that are directly complementary to growing the Australian express network.”
