LGI (LGI) H2 2025 earnings summary

Executive summary

• Achieved 14% year-over-year EBITDA growth to $17.4M, near the top end of guidance, with strong operational and financial performance, and a record year for biogas recovery, energy creation, and ACCU generation.

• Operating cash flow rose 24% to $12.3M, with capex of $18.6M funded by $9.2M free cash flow and $9.4M debt drawdown.

• Expanded operating MW capacity by 43% through upgrades and new site commissioning, positioning for further growth in FY26.

• Signed six new contracts, including five long-term biogas rights and a major battery project at Bellrose, expanding the development pipeline to 56 MW.

• Maintained high safety standards with zero lost time injuries, improved asset availability, and disciplined cost control.

Financial highlights

• EBITDA increased by 14% year-over-year to $17.4M, at the upper end of guidance.

• Operating cash flow rose 24% to $12.3M, aided by ACCU sales.

• Net revenue increased 10% year-over-year to $33.9M, with net revenue outpacing O&M cost growth (10% vs. 5%).

• Underlying EBITDA margin improved to 51.2% from 49.5%; EBIT margin stable at 32.1%.

• $18.6 million in capital investment funded by a mix of free cash flow and debt facility utilization.

Outlook and guidance

• FY26 EBITDA expected to grow 25–30% over FY25, driven by full-year contributions from new assets and projects.

• Anticipates further increases in ACCU creation and energy output as new sites and battery projects come online.

• Priorities include delivering Canberra and Belrose battery expansions, expanding power stations, and pursuing new landfill gas and battery opportunities.

• Project timing and market dynamics, including regulatory approvals, may impact delivery.