Freightways Reports 17% NPAT Growth on $718m Revenue in HY26

Strong Financial Performance Amid Improving Economic Conditions

Freightways Group Limited has delivered a solid first half for FY26, reporting an 8.5% increase in revenue to NZD 718.2 million and a 17.2% rise in net profit after tax (NPAT) to NZD 52.5 million. Earnings before interest, tax and amortisation (EBITA) grew 12.2% to NZD 96.5 million, with margins improving to 13.4% from 13.0% in the prior corresponding period. These results reflect steady economic recovery in New Zealand and stable conditions in Australia, supporting volume growth and operational efficiencies.

Express Package & Business Mail Leads Growth

The Express Package and Business Mail division was the standout performer, with revenue climbing 10.4% to NZD 604 million and EBITA increasing 14% to NZD 91.2 million. Growth was driven by same-customer volume increases, net market share gains, and pricing discipline implemented early in the financial year. Notably, Allied Express in Australia delivered strong volume growth and improved profitability, benefiting from new business wins and better utilisation. In New Zealand, demand shifted towards economy services, reflecting a more cost-conscious market.

Strategic Acquisition Enhances Australian Presence

In a significant strategic move, Freightways completed the acquisition of VT Freight Express (VTFE) in Victoria, Australia, for A$71 million. VTFE, a B2B express delivery service with A$77 million in revenue over the past year, complements Freightways’ existing Allied Express B2C network. This acquisition provides a foothold for organic growth and further M&A in the Australian express market, aligning with Freightways’ disciplined approach to expanding its geographic footprint and service offerings.

Information Management & Waste Renewal Shows Stability

The Information Management and Waste Renewal division reported stable revenue of NZD 117.1 million and modest EBITA growth to NZD 15.7 million despite a 14% decline in digital revenue due to the completion of a government project. Volume growth in Secure Destruction and Medical Waste services helped offset these declines. The division also faced A$1.6 million in one-off restructuring costs, which are not expected to recur.

Capital Management and Dividend Increase

Freightways maintained a strong balance sheet, reducing net debt by 6.7% to NZD 587.1 million, which lowered interest expenses and supported earnings growth. The company declared a fully imputed interim dividend of 21 cents per share, up 10.5% from the prior period, reflecting confidence in cash flow generation and capital discipline. The balance sheet strength also underpins Freightways’ capacity to pursue further complementary acquisitions.

Outlook, Margin Focus and Growth Opportunities

Looking ahead, Freightways expects a steady improvement in same-customer volumes in New Zealand as economic recovery continues. Margin improvement remains a priority, supported by stable labour costs and the rollout of a new billing platform aimed at enhancing pricing discipline. The company will maintain a proactive yet disciplined approach to mergers and acquisitions, focusing on opportunities that complement and expand its Australian express network. Operational initiatives, including fleet modernisation and network optimisation, are also underway to sustain momentum.