Boom Logistics Faces Fatality Probe and Leadership Changes Despite Growth

Steady Growth and Capital Discipline

Boom Logistics Limited has kicked off FY26 with a modest 2% revenue increase to $70.7 million in the first quarter, signaling steady demand across its diversified lifting and project logistics services. The company’s disciplined approach to capital expenditure has yielded a 55% reduction compared to the same period last year, down to $3.9 million, thanks largely to the benefits of an asset regeneration program completed in prior periods.

This capital efficiency has translated into a 42% jump in cash at bank, reaching $19.2 million, strengthening Boom’s financial flexibility. Net debt edged up slightly by 4% to $96 million, reflecting ongoing investments balanced with prudent financial management.

Contract Wins and Operational Highlights

Operationally, Boom secured new contracts with a combined estimated revenue of $34 million over their lifespans, reinforcing its foothold in key sectors including renewables, resources, and infrastructure. Notable wins include an expanded scope at the Snowy Hydro project with additional cranes deployed, two new multi-year service agreements in Western Australia’s resources sector, and a new renewables contract in New South Wales focused on transmission line work.

The company also reported strong shutdown activity in Western Australia and Central Queensland, with a robust tender pipeline featuring several projects in late-stage negotiations. These developments underpin Boom’s confidence in delivering 15% earnings per share growth for FY26, supported by ongoing share buybacks that have seen approximately 0.5 million shares repurchased at a value of around $0.7 million during the quarter.

Safety and Governance Challenges

On the safety front, Boom reported one lost time injury during the quarter. The company remains under scrutiny as the formal investigation by Workplace Health and Safety Queensland into a fatality at the Clarke Creek Wind Farm in July 2025 continues. The outcome of this investigation could have regulatory and reputational implications.

Governance changes are also underway. Boom is actively searching for a new Chief Executive Officer and Chief Financial Officer, with Chair Kieran Pryke stepping in to take a more hands-on role in the interim. Additionally, Non-Executive Director Stephen Grove will step down following the upcoming AGM, prompting a search for his replacement. Board committee leadership has shifted, with Damian Banks taking over as Chair of the Audit and Risk Committee and James Scott assuming the Nomination and Remuneration Committee chairmanship.

Pursuit of Fund Recovery

In a continuing saga, Boom has recovered nearly $580,000 from its former Managing Director and CEO, Ben Pieyre, related to misused funds. The company now considers the total amount misappropriated to be approximately $1.14 million and is pursuing full reimbursement. This ongoing recovery effort adds a layer of complexity to Boom’s leadership transition and governance narrative.

Looking ahead, Boom Logistics appears well-positioned to capitalize on its strong project pipeline and operational efficiencies, though the pending safety investigation and executive appointments will be closely watched by investors and stakeholders alike.