LGI (LGI) H1 2025 earnings summary

Executive summary

• Revenue increased 6.7% to $16.9M for H1 FY25, with net revenue up 5.4% to $15.6M, driven by higher ACCU prices, increased generation capacity, and record biogas recovery.

• Underlying EBITDA rose 3.0% to $7.3M, with a margin of 46.7%, while NPAT declined 22.5% to $2.4M due to higher depreciation and borrowing costs.

• Major operational milestones included the Canberra power station upgrade, expansion of contracted landfill and carbon abatement sites, and commissioning of Mugga Lane's 20 MW connection.

• Secured five new landfill gas rights contracts, expanding access to up to seven additional sites, and transitioned the Grafton site to a long-term gas rights agreement.

• Industry recognition with multiple awards for innovation and sustainability, including for the Bunya Renewable Hybrid Project.

Financial highlights

• Statutory and underlying EBITDA margin was 46.7%, down 106 bps year-over-year; underlying EBIT margin fell to 27.1%.

• Operating cash flow conversion remained robust at 86.2%, supporting ongoing capital investments.

• CapEx for H1 FY25 was $10.3M (70% of revenue), primarily funded from operating cash flow and moderate debt increase.

• Net interest expense rose 160% to $992K due to increased debt for project funding.

• Interim dividend of 1.2 cents per share fully franked declared, payable March 2025.

Outlook and guidance

• FY25 underlying EBITDA expected to grow 12–15%, subject to market dynamics and project timing.

• Expect electricity revenue to increase in H2 as Mugga Lane operates at full capacity and Bingo comes online.

• Focus areas include health, safety, project delivery (Canberra and BINGO expansions), and new landfill gas management opportunities.