MOVE Logistics Cuts Losses 68% in 1Q26 Despite Revenue Dip

Strong Cost Discipline Drives Improved Profitability

MOVE Logistics Group Limited (ASX/NZX – MOV) has delivered a promising trading update for the first quarter of FY26, showing marked progress in reducing losses despite a challenging economic backdrop. The company’s normalised earnings before tax (EBT) loss narrowed by 68% compared to the same period last year, reflecting the tangible benefits of a rigorous cost reduction and efficiency program implemented over the past 12 months.

Operating costs fell by approximately $3 million quarter-on-quarter, underpinning the highest gross margin percentage MOVE has recorded in two years. This improvement signals that the company’s efforts to streamline its operations and rightsize its network are beginning to take hold, providing a more resilient financial platform.

Revenue Pressures Persist Amid Economic Uncertainty

Despite these gains, group revenue declined by 3.5% in 1Q26, a reflection of the broader economic headwinds that continue to weigh on demand across the freight and logistics sector. MOVE’s CEO Paul Millward acknowledged the uncertain timing of an economic recovery but expressed confidence in the company’s positioning, highlighting a diversified service offering and strong customer relationships as key advantages.

All business units, except for Warehousing, reported improvements during the quarter. The Warehousing segment remains challenged, although MOVE is making incremental progress through new business wins, productivity enhancements, and the strategic exit from two property leases. These moves are expected to provide some relief and support a turnaround in the segment over the course of FY26.

Looking Ahead – From Cost Cutting to Value Creation

Millward emphasized that MOVE is transitioning from a focus on cost reduction to value creation, aiming to leverage its streamlined operations and national network to capture new business opportunities. The company’s commitment to customer service and operational excellence appears to be resonating, as evidenced by positive customer feedback and ongoing contract wins.

With the company on track to return to positive normalised EBT within the financial year, investors will be watching closely to see if MOVE can sustain this momentum and navigate the uncertain economic environment ahead.