Lindsay Australia (LAU) H2 2024 earnings summary

Executive summary

• FY24 operating revenue rose 18.9% to $804.4m, with underlying EBITDA up 2.1% to $92.1m despite a challenging second half.

• Net debt decreased 17% to $106.9m, and net leverage improved to 1.16x.

• ROIC moderated to 20.2% from 24.8% due to softer 2H24 results.

• WB Hunter acquisition integrated, diversifying product lines and regional reach.

• Final dividend maintained at 4.9 cps, fully franked, with payout ratio increased to 50%.

Financial highlights

• Underlying NPAT down 17% to $30.4m; underlying EPS down 19.4% to 9.7 cps year-over-year.

• Operating cash flow remained strong, funding $23.6m for WB Hunter and $20.5m in capex.

• $52m capex in FY24, with $32m on asset replacement and $20m on growth.

• Free cash flow supported by robust EBITDA and disciplined capital management.

Outlook and guidance

• Gradual recovery in horticulture volumes expected through 2025 as customer sentiment improves.

• Positioned to capture market share via organic growth and acquisitions, leveraging scale and financial flexibility.

• Industry consolidation anticipated as investment cycle peaks over next 12–24 months.