Move Logistics Group has reported improving earnings metrics in a weak economy, saying its transformation programme is on track to return the business to positive normalised earnings in FY26.
Revenue for the year to June 30, 2025 fell 2.6% to $286.3m, but normalised earnings before tax (NEBT) improved 61% year-on-year to a $10m loss, with 4Q25 the strongest quarter in two years.
A broad cost-out delivered about $27m in operating expense reductions (around $15m labour and $12m other efficiencies). Gross margin rose 4.1 percentage points to 29.2%, with gross margin dollars up 13.4%. Net loss after tax narrowed by $32.5m to $15.6m. Operating cashflow rose 35% to $25.3m, with adjusted net operating cashflow positive at $0.3m.
“The road to recovery is never easy, but we are executing at pace to restore and build on the core strengths that have always defined Move, while laying the groundwork for a new chapter,” chair Julia Raue says.
“While there is still more to do, our work is making Move stronger and we will be better positioned than many others in the market when demand returns.”
Chief executive Paul Millward says the “Accelerate” programme was delivering results.
“Execution of our transformation programme has us on track to create value and deliver positive normalised earnings in FY26.
“The Accelerate transformation plan has been well executed by the team and we are now a far stronger organisation with most legacy issues resolved. We have one year of the Accelerate programme remaining and are crystal clear on what we need to do to realise the full value of Move for all stakeholders.”
Three of Move’s four divisions lifted normalised earnings. Freight and fuel increased revenue and margins, improving its NEBT result by 90% year-on-year and moving to a positive normalised EBT in 4Q25. Specialist remained strong and international was steady, with the oceans shipping pilot supported by renewed contracts. Warehousing stayed under pressure amid excess capacity and sharper pricing; a reset is under way under new leadership.
Network changes include a new freight branch opening in Dunedin and exits from two under-utilised warehouse sites, consolidating revenue into an existing facility.
The company expects the financial benefits to flow through FY26, mainly in the second half.
Move says trading conditions remained difficult through FY25 as the recovery stalled, with cost-of-living pressures, higher unemployment and interest rates denting demand, and transport disruption from ageing ferries and extreme weather.
Looking ahead, the company says margin discipline and lower costs provide a platform for earnings growth as activity picks up.
“With one year of the Accelerate programme remaining, we are now moving from cost out to value creation,” Millward says
“We have a passionate and expert team who deliver for Move’s customers every day and we are focused on winning in market to create revenue and margin growth.
“Our four year New Horizons roadmap sets out our pathway to FY28 as we focus on achieving our goals and becoming the preferred logistics provider in New Zealand.
“While there is more work ahead, we are confident that the changes underway are laying the groundwork for a stronger, profitable and more resilient business.
“The New Zealand freight and warehousing industry is estimated to be worth more than $10 billion. At Move, we are working hard to build our share of this market and ensure we are the preferred provider for New Zealand businesses,” Millward adds.
The company says it remains positioned with a rightsized business, lower cost base and national network, and will target positive normalised EBT in FY26.
