How Will Lindsay Australia’s New Acquisitions Shape Its Future Amid Profit Decline?
Lindsay Australia Limited reported a 5.6% revenue increase to A$849.8 million for FY25 but saw net profit after tax fall 36.2% to A$17.39 million. The company declared a fully franked final dividend of 1.5 cents per share and strengthened its national refrigerated logistics footprint through key acquisitions.
- 5.6% revenue growth to A$849.8 million
- 36.2% decline in net profit after tax to A$17.39 million
- Final fully franked dividend of 1.5 cents per share declared
- Acquisitions of GJ Freight, Nagambie Equine & Rural, and post-year SRT Logistics
- Capital investment of A$50.8 million focused on fleet and facility upgrades
Financial Performance Overview
Lindsay Australia Limited (ASX – LAU) has released its full-year results for the financial year ended 30 June 2025, reporting a resilient revenue increase of 5.6% to A$849.8 million. However, the company faced significant margin pressures, resulting in a 36.2% decline in net profit after tax to A$17.39 million. This divergence reflects challenging market conditions, including inflationary cost pressures and competitive intensity, particularly within its core refrigerated transport segment.
The board declared a fully franked final dividend of 1.5 cents per share, bringing the total dividend for the year to 3.8 cents per share, down from 4.9 cents the previous year. The dividend record date is set for 30 September 2025, with payment scheduled for 10 October 2025.
Segment Performance and Strategic Acquisitions
The Transport division, which accounts for the majority of group revenue, grew modestly by 1.7% to A$574 million. Despite this, underlying segment profit before tax declined by 12.4%, impacted by higher labour and input costs alongside seasonal and weather-related challenges in horticultural volumes. The division's growth was supported by organic expansion and the acquisition of GJ Freight in Southwest Western Australia, enhancing the company’s footprint in a key horticulture corridor.
The Rural segment demonstrated robust growth, with revenue up 8.7% to A$165.5 million and underlying profit before tax increasing 10.7%. This performance was driven by the packaging business and integration with the Transport division’s ‘fruit loop’ model, delivering a seamless end-to-end service for customers.
Hunter, acquired in August 2023 via WB Hunter Pty Ltd, reported a 26.1% revenue increase to A$110.2 million in its first full year under Lindsay ownership. While like-for-like retail sales declined slightly due to macroeconomic pressures, the segment’s underlying EBITDA rose 9.6%, supported by acquisitions such as Nagambie Equine & Rural and expanded packaging capabilities.
Post-year-end, Lindsay Australia completed the acquisition of SRT Logistics, Tasmania’s largest refrigerated supply chain provider. This strategic move extends the company’s national refrigerated logistics network and opens new growth avenues in the Tasmanian and Bass Strait markets.
Capital Investment and Operational Initiatives
The Group invested A$50.8 million in capital expenditures during FY25, focusing on fleet renewal, depot expansions, and technology upgrades. Key projects include the expansion of the Adelaide refrigerated facility and a new leasehold site in Perth, both expected to complete in the first half of FY26. These investments aim to alleviate capacity constraints and enhance operational efficiency.
Lindsay Australia continues to prioritize safety, sustainability, and cost discipline, rolling out higher-capacity road combinations to mitigate cost pressures and maintain competitive pricing. The company’s net leverage ratio stood at 1.53x at year-end, with expectations to rise to between 1.7x and 1.9x following the SRT acquisition, remaining within the board’s comfort range.
Governance and Remuneration
The company disclosed comprehensive governance and remuneration details, including the appointment of new independent director Rodney J Boys and the retirement of Michael Stubbs. Executive remuneration remains linked to performance, with share-based incentives under the Long-Term Incentive Plan (LTIP) designed to align management rewards with shareholder value creation.
Lindsay Australia also emphasized its commitment to environmental, social, and governance (ESG) initiatives, including a newly developed sustainability roadmap targeting CO2 reduction and climate risk mitigation.
Outlook
Looking ahead, Lindsay Australia anticipates continued challenges in refrigerated transport due to competitive pricing and elevated costs. The company plans to maintain disciplined pricing, cost management, and focus on network utilization. Integration of recent acquisitions and completion of facility upgrades are expected to enhance scale and efficiency, positioning Lindsay Australia to capture market share as conditions normalize and demand recovers.
Bottom Line?
Lindsay Australia’s strategic acquisitions and capital investments position it for growth, but near-term profit pressures and market challenges warrant close investor attention.
Questions in the middle?
- How will the integration of SRT Logistics impact Lindsay Australia’s profitability and operational efficiency?
- What strategies will the company deploy to recover margins in the Transport segment amid ongoing cost pressures?
- How might evolving climate risks and sustainability initiatives influence Lindsay Australia’s long-term capital allocation?
