ALS (ALQ) H2 2025 earnings summary

Executive summary

• Delivered 16% revenue growth to AUD 3 billion and underlying EBIT up 4.7%, demonstrating business resilience and diversification, in line with strategic objectives.

• Robust performance across a diversified portfolio, with resilience in minerals and strong growth in life sciences, especially environmental and food segments.

• Announced AUD 350 million equity raising to fund major lab network expansion and future organic growth.

• Integration of recent Life Sciences acquisitions ahead of plan; Nuvisan cost-out program to complete six months early.

• Maintained industry-leading safety performance, with TRIFR at 0.94, LTIFR at 0.31, and strong cash conversion at 95% of underlying EBITDA.

Financial highlights

• Revenue grew 16% year-over-year to AUD 3 billion; organic growth was 4.9%.

• Underlying EBIT increased 4.7% (7.7% at constant currency); EBIT margin (ex-acquisitions) at 19.1%.

• Underlying NPAT declined 1.4% to AUD 312.1 million, but up 2.8% at constant currency.

• Final dividend declared at AUD 19.7 per share, 60% payout ratio; underlying EPS was 64.4c, down 1.5%.

• Group margin contracted by 160–185 basis points due to acquisitions and cyclical mineral pricing.

Outlook and guidance

• Targeting 5%-7% organic revenue growth and margin expansion in FY2026.

• On track for FY2027 targets: revenue of AUD 3.3 billion, EBIT of AUD 600 million, and EBIT margin floor of 19% (ex-acquisitions).

• Nuvisan transformation to deliver EUR 19 million annualized savings and €11m incremental cost-out in FY26.

• No material input cost impact expected from announced tariffs.

• Life sciences legacy business targeting 20-40 basis points margin expansion, excluding Mexico regulatory impact.