Lindsay Australia (LAU) H1 2025 earnings summary

Executive summary

• Group revenue increased 3.6% to AUD 432.8 million for H1 FY25, but underlying EBITDA declined by 9.2% to AUD 47.3 million due to cost escalation and competitive market pressures.

• Profit after tax fell to AUD 15.8 million, reflecting higher costs and increased depreciation.

• The board declared a fully franked interim dividend of AUD 0.023 per share, up 9.5% year-over-year, with a payout ratio of 46%.

• Strategic expansion included the acquisition of GJ Freight in WA and new rural store acquisitions in the Goulburn Valley.

• Market conditions remain challenging, especially in refrigerated transport, with no clear timeline for normalization.

Financial highlights

• Group revenue up 3.6% year-over-year to AUD 432.8 million.

• Underlying EBITDA down 9.2% to AUD 47.3 million.

• Profit after tax at AUD 15.8 million for the half.

• EPS for the half at 5.0 cents, down from 6.3 cents in HY2024.

• Rural division sales up 7.4% to AUD 85.1 million; underlying profit before tax up 13.8% to AUD 4.7 million.

Outlook and guidance

• No clear visibility on when market conditions will normalize; focus remains on operational execution and strategic initiatives.

• Expectation for improved cash conversion in H2, targeting 75% for the full year.

• Operational headwinds expected to persist in 2H25 due to capacity expansion, pricing pressure, weather, and subdued demand.

• Continued investment in transformation and network expansion to position for future growth.

• Recent weather events in North Queensland have added complexity to recovery efforts.