ALS (ALQ) H1 2026 earnings summary

Executive summary

• Revenue grew 13.3% to AUD 1.7 billion ($1,659.6 million), with 6.9% organic growth and positive FX impact; all business streams contributed, especially Commodities and Life Sciences.

• Underlying EBIT rose 14.7% to AUD 287.2 million, with EBIT margin at 17.3%; underlying NPAT increased 17.2% to AUD 178.4 million.

• Free cash flow was AUD 303.9 million (88% of underlying H1 EBITDA), up 10.8% year-over-year.

• Interim dividend of AUD 0.194 per share declared, up 2.6%-3%, with a 55% payout ratio.

• Digital and AI investments advanced, with LIMS penetration targeted at 95%-100% in three years.

Financial highlights

• Return on capital employed steady at 19.4%; underlying ROCE in line with prior year.

• Group margin increased by 31 bps on a constant currency basis; EBIT margin at 17.3%.

• Leverage reduced to 1.8x post AUD 370 million equity raise; EBITDA interest cover at 10.2x.

• Base CapEx was AUD 89 million (5.4% of revenue); two-thirds for growth initiatives.

• Statutory NPAT was AUD 141.7 million, up 11.8% year-over-year.

Outlook and guidance

• Organic revenue growth target for FY 2026 upgraded to 6%-8% (from 5%-7%).

• Commodities organic revenue growth guidance raised to 12%-14% (from 5%-7%).

• Life sciences organic growth guidance revised to 4%-6% (from 5%-7%).

• FY 2027 targets: revenue AUD 3.3 billion, underlying EBIT AUD 600 million, EBIT margin floor 19%.

• Underlying NPAT phasing expected to be 48% H1 / 52% H2.