Freightways Group has posted a solid full-year result despite a contracting economy, with net profit rising 12.9% to $80.1m for the 12 months to June 30.
Revenue increased 6.6% to $1.3b, while earnings before interest, tax and amortisation also grew 6.3% to $158.4m. The company declared a final dividend of 21c per share, bringing the total dividend for the year to 40c, fully imputed — up more than 8% on last year.
NZX- and ASX-listed Freightways says the result reflected the resilience of its people and customers through challenging economic conditions.
Revenue growth came despite New Zealand’s GDP contracting 0.6% in the year to March 2025. The express package and business mail division lifted revenue 6.2% and EBITA 11.6%, while the information management and waste renewal division rose 9% in revenue but saw EBITA fall 3.1%.
Labour costs remain a pressure point. “As an example, truck driver wages rose by approximately 20%, minimum wage increases peaked at 25% over a four-year period in New Zealand, and paid sick leave doubled. Our strategy over FY25 and FY26 is to reclaim this lost margin through efficiency gains and pricing adjustments,” the company says.
Recruitment conditions have eased, with Freightways reporting strong applicant interest in roles that were previously hard to fill.
The company has also continued to grow in Australia, where more than a third of revenue and profit now originate. Recent initiatives include TIMG’s digital medical records partnership with InfoMedix, Allied Express’s automated sortation investment, and Kiwi Oversize’s $10m revenue stream build-out.
Freightways highlighted the performance of its Big Chill temperature-controlled logistics business, which has expanded significantly with the opening of a 21,200 square metre 3PL superhub at Ruakura in October 2023. The site, capable of holding 16,500 pallets of chilled and frozen food, reached break-even in its first year — nine months ahead of schedule — and is expected to achieve full payback in three years.
The Ruakura site doubled Big Chill’s cold storage capacity nationwide, relieved pressure on existing Putaruru and Auckland facilities, and provided more efficient delivery solutions to the “golden triangle” of Auckland, Hamilton, and Tauranga. Demand for 3PL services has “been strong”, with customers already pushing for further expansion, the company says.
While transport volumes were soft, Freightways says Big Chill earnings improved as its storage and distribution services generated incremental revenues.
Looking ahead, Freightways expects overall continued margin improvement in FY26, modest organic growth, and new opportunities in oversized freight, chilled deliveries, high-value waste services, and e-commerce logistics.
