LGI Limited reported robust FY25 results with a 14% rise in EBITDA and secured six new contracts, positioning the company for a 25-30% EBITDA increase in FY26. Key project completions and expansions underpin this momentum.
- FY25 EBITDA up 14% to $17.4 million
- Net revenue increased 10% to $33.9 million
- Commissioned new power stations in Sydney and Canberra
- Secured six new contracts including five landfill biogas sites and one battery project
- FY26 EBITDA guidance raised by 25-30%, driven by project expansions
Strong Operational and Financial Performance in FY25
LGI Limited, a leader in landfill biogas recovery and renewable energy generation, delivered a solid financial performance for the fiscal year ended June 2025. The company reported a 14% increase in EBITDA to $17.4 million, alongside a 10% rise in net revenue to $33.9 million. These gains were supported by operational excellence, including a 43% increase in operating capacity to 21.1MW and improved generator availability of 98%.
Key Project Milestones and Contract Wins
FY25 saw LGI commission two major projects on schedule and budget, the 4.2MW Sydney Eastern Creek power station and the expansion of the Canberra Mugga Lane facility, which increased capacity by 50%. The company also secured six new contracts, comprising five landfill biogas rights agreements across Queensland and New South Wales and one battery energy storage system project at Belrose, Sydney. These additions expand LGI’s contracted development pipeline from 47MW to 56MW, reinforcing its growth trajectory.
Market Dynamics and Strategic Positioning
LGI’s strategy leverages the inherent volatility in the Australian energy market, capitalizing on opportunities to generate dispatchable renewable energy. The company’s vertically integrated model spans biogas extraction, power generation, and environmental product sales, including Australian Carbon Credit Units (ACCUs). In FY25, biogas flows increased 11% to 127.7 million cubic meters, supporting a 14% rise in ACCUs created to nearly 493,000 units, and renewable electricity generation grew 13% to over 109,000 MWh.
Outlook and Guidance for FY26
Looking ahead, LGI has raised its EBITDA guidance for FY26 to a 25-30% increase over FY25, reflecting confidence in ongoing project expansions, including the second phase of the Canberra Mugga Lane upgrade with 12MW/24MWh Tesla batteries expected to commission in the second half of FY26. The company also emphasizes continued focus on health, safety, environmental standards, and exploring further expansions at contracted landfill sites.
Governance and Shareholder Approvals
At the 2025 Annual General Meeting, shareholders approved key governance items including the re-election of directors Abigail Cheadle and Timothy McGavin, amendments to the company constitution, renewal of proportional takeover provisions, and the amended Omnibus Incentive Plan. These approvals provide a stable governance framework to support LGI’s growth ambitions.
Bottom Line?
LGI’s strong FY25 foundation and expanded contract portfolio set the stage for accelerated growth, but execution risks and market volatility remain key factors to watch.
Questions in the middle?
- How will LGI manage operational and timing risks associated with its ambitious FY26 expansion plans?
- What impact will fluctuating energy market prices have on LGI’s revenue and profitability going forward?
- Can LGI sustain its growth momentum while maintaining high health, safety, and environmental standards?