How Is Lindsay Australia Navigating Margin Pressures While Growing Revenue 5.6%?
Lindsay Australia Limited reported a resilient FY25 with revenue up 5.6% to $849.8 million and underlying EBITDA of $81.4 million, despite margin pressures from competitive pricing and rising costs. The company successfully integrated the SRT acquisition, expanding its national refrigerated logistics network.
- FY25 operating revenue increased 5.6% to $849.8 million
- Underlying EBITDA declined to $81.4 million amid cost pressures
- SRT acquisition completed and integrated, boosting Tasmanian presence
- Capital expenditure of $50.1 million focused on fleet and facilities
- Net leverage ratio at 1.53x with ROIC at 14.3%, dividend declared at 3.8 cps
Solid Revenue Growth Despite Challenging Market
Lindsay Australia Limited has delivered a steady financial performance for the fiscal year ended June 30, 2025, reporting a 5.6% increase in operating revenue to $849.8 million. This growth was driven by organic expansion in its transport division, particularly through new customer wins in protein and dairy sectors, alongside the strategic acquisition of SRT, which broadened the company’s footprint into Tasmania.
However, the company faced margin compression due to a competitive pricing environment, elevated labour costs, and seasonal volatility impacting horticultural volumes. Underlying EBITDA declined to $81.4 million, reflecting these headwinds despite revenue gains.
Strategic Acquisitions and Network Expansion
The acquisition of SRT, completed in July 2025, marks a significant milestone in Lindsay Australia’s growth strategy. The integration is progressing smoothly, with early synergies already identified and a $1 million synergy target set for FY26. This acquisition strengthens the company’s national cold-chain network, particularly enhancing its presence in Tasmania, a region with strong growth prospects.
Additional acquisitions, including Hunter, NER, and GJ Freight, have diversified Lindsay’s customer base and service offerings, reducing reliance on seasonal horticulture and expanding into higher-value protein and dairy markets. The company’s multi-modal logistics capabilities across road, rail, and sea continue to underpin its market-leading position.
Focused Capital Investment and Operational Efficiency
Capital expenditure for FY25 totaled $50.1 million, with investments split between maintenance and growth initiatives. Notably, $20 million was allocated to fleet expansion and facility upgrades, supporting a transition to higher-capacity refrigerated trailers and enhancing network reliability. The company’s modern fleet strategy aims to improve utilisation, safety, and environmental outcomes.
Despite increased corporate costs related to systems upgrades and integration efforts, Lindsay Australia maintains disciplined capital allocation and a conservative approach to debt management. The net leverage ratio stood at 1.53x, within the company’s target range, preserving financial flexibility for future growth opportunities.
Outlook and Market Positioning
Looking ahead, Lindsay Australia anticipates continued near-term challenges from competitive pricing and elevated input costs. However, the company is optimistic about medium-to-long-term fundamentals supported by sector consolidation, rising freight demand, and macroeconomic tailwinds such as population growth and expanding horticulture output.
The focus remains on integrating acquisitions, realising synergies, and expanding into complementary, non-seasonal revenue streams like dairy and protein. The rural segment is expected to sustain positive momentum, supported by packaging strength and an integrated service model.
Overall, Lindsay Australia’s scale, diversified network, and integrated operating model position it well to capture market share and drive sustainable margin recovery as industry dynamics improve.
Bottom Line?
Lindsay Australia’s FY25 results underscore resilience and strategic progress, but margin recovery hinges on successful integration and market stabilization.
Questions in the middle?
- How quickly will Lindsay Australia realise the $1 million synergy target from the SRT acquisition?
- What impact will ongoing competitive pricing and rising labour costs have on margins in FY26?
- Can the company sustain growth in non-seasonal segments like dairy and protein to offset horticulture volatility?
