MOVE Logistics Group (MOV) H1 2025 earnings summary

Executive summary

• Earnings loss halved year-over-year, with gross margin expansion to 29% despite a weak economy and lower revenue.

• Accelerate transformation program and cost discipline drove improved performance, with new CEO Paul Millward appointed in February 2025.

• Adjusted EBITDA rose to $20.1m from $13.2m year-over-year, reflecting operational improvements.

• Rightsizing of network, fleet, and assets underway, with further opportunities identified.

• Board approved issuance of 1,856,000 restricted share units to senior managers, vesting in 2028.

Financial highlights

• Normalized EBT loss reduced by more than 50% to $6.1m year-over-year, including $1.1m in vessel exit costs.

• Gross margin expanded to 29%, up 5.2 basis points from 1H24, with gross margin $43.0m, up 14% year-over-year.

• Operating expenses lowered by $16.8m year-over-year, mainly from people and transport cost reductions.

• Operating cash flow was $8.9m for 1H25, compared to $10.3m in 1H24.

• Net loss after tax improved to $8.6m from $10.3m in the prior year period; EPS (6.98c) vs (8.36c) in 1H24.

Outlook and guidance

• Majority of transformation benefits expected in the second half of the financial year and beyond, with a return to positive normalized EBT targeted for FY26.

• Additional $3m-$4m in cost reductions targeted for the second half.

• Market improvement not expected until at least mid-2025.

• Debt facilities extended to August 2026, supporting liquidity and ongoing operations.