This article first appeared on GuruFocus .
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Revenue:Increased 24.8% to $540 million.
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Underlying EBITDA:Increased to $66.3 million, up 16%.
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Underlying NPAT:Flat at $15.8 million.
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Dividend:Fully franked $2.1 per share, 59% payout ratio.
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Transport EBITDA:Increased by 15.6% or $9.6 million.
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Rural EBITDA:Up 17.7%, delivering a record first half result.
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Hunter EBITDA:Improved by 32%.
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CapEx:$28 million invested in fleet and facilities in the first half of 2026.
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Invested Capital:$140 million in the past 12 months, totaling almost $425 million.
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Debt Increase:$89 million increase, primarily associated with acquisitions.
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Tax Payments:Almost $18 million in the first half of 2026.
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EPS Impact:Underlying EPS appears to drop 14% due to share issuance for SRT acquisition.
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Pro Forma EPS:Represents a 13% increase over FY25 EPS.
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Release Date: February 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Lindsay Australia Ltd ( ASX:LAU ) reported a 24.8% increase in group revenue to $540 million, driven by acquisitions and core growth across all divisions.
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The company achieved a 30% reduction in lost time injuries, reflecting improvements in safety and operational systems.
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The acquisition of SRT has been successfully integrated, contributing to strong on-island growth and double-digit EPS growth.
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Investments in high productivity vehicle solutions have improved revenue per kilometer and asset utilization.
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The company has expanded its network into Tasmania and southwest WA, enhancing its geographic diversification and reducing risk.
Negative Points
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The road transport market remains highly competitive due to an oversupply of capacity, which is expected to persist for the next 12 months.
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Despite revenue growth, underlying NPAT remained flat at $15.8 million, impacted by high depreciation and elevated interest rates.
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The company's net leverage has increased due to significant investments, although it is expected to normalize over the next 12 months.
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Operating cash flow conversion was lower in the first half, although it is expected to improve in the second half.
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The issuance of 46.5 million shares for the SRT acquisition diluted EPS in the first reporting period.
Q & A Highlights
Q: Can you give us some examples of the integration synergy benefits from the SRT acquisition? A: The synergies cover people, procurement, and operations. We've seen benefits in redeploying previously leased equipment, significant procurement advantages, and people optimization. We are confident that the $1 million outlined in the business case will be achieved and likely exceeded. - Mr Clay McDonald, Chief Executive Officer
Q: How are you seeing cost pressures across the transport business, and how is the environment for passing costs through to customers? A: Cost inputs are starting to normalize after significant increases from 2022 to 2024. The market remains competitive, with a focus on transport rates. We are offsetting this through our transformation program. - Mr Clay McDonald, Chief Executive Officer
Q: Has the company added enough capacity in Adelaide and Perth to support multiple years of growth? A: We are pleased with the developments in Adelaide and Perth. The facilities are built for current needs and future growth, providing operating leverage in road and rail to support significant growth in both terminals. - Mr Clay McDonald, Chief Executive Officer
Q: What is the outlook for the second half of the year? A: Trading conditions are expected to remain competitive, but key indicators suggest market normalization. We have the network capacity and balance sheet flexibility to capitalize on opportunities. Our focus will be on utilizing investments to drive marginal improvements and further integrating SRT into our operations. - Mr Clay McDonald, Chief Executive Officer
Q: How has the company's financial strategy evolved with recent investments? A: We've invested $140 million in the past 12 months, supporting a $1 billion+ turnover business. Despite increased debt, it is associated with long-term growth, and we maintain a strong balance sheet. We expect leverage to decrease as earnings from acquisitions materialize. - Justin Green, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
