How LGI’s 14% EBITDA Surge Fuels Renewable Energy and Battery Expansion

Strong Financial and Operational Momentum

LGI Limited has delivered a solid FY25 performance, reporting a 14% increase in EBITDA to $17.4 million, supported by a 10% rise in net revenue. This growth reflects the company’s successful expansion of its renewable energy generation fleet and carbon credit portfolio. Operating capacity surged by 43% to 21.1MW, underpinned by the commissioning of new power stations in Canberra (Mugga Lane) and Sydney (Eastern Creek).

Operational excellence was evident with zero lost time injuries reported for the year, improved generator availability reaching 98%, and enhanced gross margins due to controlled maintenance costs despite capacity growth. Biogas recovery increased 11% to a record 127.7 million cubic meters, fueling a 14% rise in Australian Carbon Credit Units (ACCUs) creation to 493,000 units.

Strategic Project Developments and Portfolio Expansion

LGI’s strategic investments in infrastructure continued with the successful delivery of the Sydney Eastern Creek 4.2MW power station on time and on budget, alongside a 50% capacity upgrade at Canberra’s Mugga Lane facility. The company is also progressing battery energy storage projects, notably the 12MW / 24MWh Belrose Battery Energy Storage System (BESS) in Northern Sydney, which is set for commissioning in early 2027 pending regulatory approvals.

In addition to generation assets, LGI expanded its carbon abatement footprint by securing five new long-term landfill gas contracts across Queensland and New South Wales, including sites at Jandowae, Warwick, Grafton, Taree, and Lithgow. These contracts contribute to a growing pipeline of 56MW capacity under contract, positioning LGI well for continued growth.

Financial Discipline and Growth Outlook

Despite increased capital expenditure of $18.6 million to support asset build-out, LGI maintained positive operating cash flow, which rose 24% to $12.3 million. The company funded its capex through a combination of operating cash flow and debt drawdowns, with a total debt facility of $49.9 million and $20.2 million available as of June 2025.

Looking ahead, LGI has set ambitious FY26 guidance, forecasting EBITDA growth of 25-30%, driven by ongoing project completions, expansion of battery storage capabilities, and continued operational improvements. The company remains focused on health, safety, environmental standards, and exploring further opportunities in landfill gas management and renewable energy generation.

Positioning in Australia’s Energy Transition

LGI’s vertically integrated business model, combining landfill gas recovery, renewable electricity generation, and carbon credit creation, positions it as a key player in Australia’s energy transition. Its innovative use of Dynamic Asset Control System (DACS) technology to optimize flexible generation assets and battery storage enhances its ability to capitalize on electricity market volatility and support grid stability.

Recognition from industry bodies, including multiple awards for innovation and sustainability, underscores LGI’s leadership in the sector. As the company scales its operations and diversifies revenue streams, it exemplifies how renewable energy and carbon abatement can be commercially viable and environmentally impactful.