LGI Boosts Renewable Capacity 44%, Reports $17.4M Underlying EBITDA in FY25

Strong Financial and Operational Performance

LGI Limited has delivered a solid financial year in FY25, reporting a 13.6% increase in underlying EBITDA to $17.4 million, alongside a 10.4% rise in revenue to $36.8 million. Despite a slight 3% dip in statutory net profit after tax to $6.5 million, the company’s profitability remains robust with an underlying EBITDA margin of 51%. This performance reflects LGI’s continued momentum since its ASX listing four years ago.

Expansion of Renewable Energy Capacity

Operationally, LGI expanded its renewable electricity generation capacity by 44%, growing from 14.7 MW to 21.1 MW under management. Key milestones included the commissioning of two new units at the Canberra power station and a new 4 MW power station at Eastern Creek, Sydney. The company’s renewable fleet availability improved to 98%, exceeding its 95% target, underscoring effective asset management and operational excellence.

Strategic Contract Wins and Battery Storage Initiatives

LGI secured six new contracts during FY25, five of which involve long-term landfill gas rights that will generate Australian Carbon Credit Units (ACCUs). Notably, LGI entered a contract to develop a Battery Energy Storage System (BESS) at the Belrose closed landfill in Northern Sydney, owned by the Waste Assets Management Corporation. This project aligns with the company’s strategy to enhance its electricity segment, which is forecasted to grow to 56 MW under management. The Belrose battery project is progressing through development approval and grid connection phases.

Carbon Abatement and Environmental Compliance

LGI increased biogas flows by 11% to 127.7 million cubic meters and created 493,446 ACCUs, a 14% increase year-on-year. The company supports the Clean Energy Regulator’s proposed new landfill gas carbon methodologies aimed at improving scheme integrity. LGI reported full compliance with environmental regulations and maintained a strong safety record with zero lost time injuries in FY25.

Financial Position and Dividend

LGI remains cash flow positive, funding $18.5 million in capital expenditure through a mix of operating cash flow and debt, with available debt facilities of approximately $19 million. The Board declared a final fully franked dividend of 1.3 cents per share, bringing the total dividend for FY25 to 2.5 cents per share, reflecting confidence in the company’s ongoing cash generation and growth prospects.

Technology and Future Outlook

LGI continues to invest in its proprietary Dynamic Asset Control System (DACS), enhancing fleet automation and enabling flexible, 24/7 operation to capitalise on electricity market volatility. The company’s strategic priorities focus on expanding biogas capture infrastructure, increasing renewable electricity generation, and growing its battery storage portfolio to support Australia’s transition to a low-carbon energy future.