Transformation Risks Loom as MOVE Logistics Eyes Profitability in FY26

FY25 Financial Highlights Amid Economic Headwinds

MOVE Logistics Group Limited (ASX/NZX, MOV) has released its FY25 results, demonstrating meaningful progress in its ongoing transformation despite a subdued economic backdrop. The company reported revenue of NZD 286.3 million, a modest 2.6% decline year-on-year, reflecting the broader challenges in the freight and logistics sector. However, the headline takeaway is a 61% improvement in normalised earnings before tax (NEBT), which narrowed the loss to NZD 10 million, underscoring the effectiveness of MOVE’s cost reduction and operational efficiency initiatives.

Transformation Programme Driving Margin Expansion and Cost Discipline

Central to MOVE’s improved financial performance is its Accelerate transformation programme, launched in mid-2024. The company achieved a broad structural reduction in operating expenses of approximately NZD 27 million, including NZD 15 million in labour savings and NZD 12 million from other efficiencies. This cost discipline contributed to a gross margin increase of 4.1 percentage points to 29.2%, the highest in two years, with gross margin dollars up 13.4%. These gains were evident across most business segments, with the notable exception of Warehousing, which is undergoing a strategic reset under new leadership.

Segment Performance and Network Optimisation

The Freight & Fuel division was a standout performer, delivering revenue growth and a 90% improvement in NEBT loss, turning positive in the final quarter of FY25. The Specialist division maintained steady growth supported by a healthy project pipeline, while the International segment continued to build momentum with its Oceans shipping pilot and renewed foundational contracts. Warehousing faced headwinds from excess market capacity and pricing pressures but has retained key customers and secured new contracts commencing in the first half of FY26. MOVE is also optimising its network footprint, including opening a new modern Freight branch in Dunedin and exiting two under-utilised warehouse sites, moves expected to yield positive financial impacts in FY26.

Leadership and Governance Strengthen Transformation Execution

The company’s leadership refresh, including the appointment of Paul Millward as CEO in early 2025 and a streamlined Board under Chair Julia Raue, has been pivotal in driving the transformation agenda. The Board has maintained a prudent approach to capital management, securing extended funding arrangements with ANZ Bank and Pacific Invoice Finance New Zealand Limited, ensuring liquidity and balance sheet resilience. MOVE also continues to embed strong governance and risk management practices, with a focus on sustainability and climate-related disclosures forthcoming.

Outlook, On Track for Profitability and Market Positioning

Looking ahead, MOVE Logistics is confident in its trajectory towards positive normalised earnings in FY26. The company plans to shift from cost reduction to value creation, leveraging its rightsized cost base, national network, and customer partnerships. While acknowledging ongoing economic uncertainties, MOVE’s strategic roadmap through FY28 aims to establish it as New Zealand’s preferred freight and logistics provider, capitalising on a market estimated to exceed NZD 10 billion. The company’s focus on operational excellence, customer service, and smart growth initiatives positions it well to capture market share as demand recovers.