Boom Logistics has reported a record half-year revenue of $142.2 million for 1H FY26, alongside upgraded earnings guidance and an expanded share buy-back program, signalling strong operational momentum despite sector challenges.
- Record half-year revenue of $142.2 million, up 8% year-on-year
- Underlying net profit after tax rises 32% to $6.6 million
- Upgraded FY26 earnings per share guidance to 30 cents, a 37% increase
- Expanded share buy-back target to $6 million for FY26
- Renewables sector faces near-term delays offset by growth in resources and infrastructure
Strong Half-Year Performance Amid Sector Dynamics
Australia’s Boom Logistics, the nation’s sole ASX-listed provider of complex lifting and project logistics solutions, has delivered a standout first half for FY26. The company posted record revenue of $142.2 million, marking an 8% increase compared to the same period last year. This growth was underpinned by improved operational discipline, margin control, and business maturity, driving a 7% rise in statutory earnings per share to 13 cents and a more pronounced 37% uplift in underlying EPS to 16 cents.
Underlying net profit after tax climbed 32% to $6.6 million, reflecting solid earnings growth despite a challenging environment in some sectors. Cash flow generation was particularly robust, surging 52% to $15.1 million and strengthening Boom’s balance sheet with a closing cash position of $25.5 million.
Sector Performance and Project Highlights
Boom’s diversified portfolio spans resources, infrastructure, renewables, and industrial sectors. The resources and infrastructure segments showed strong organic growth, supported by ongoing maintenance contracts and a healthy pipeline of new opportunities. Key projects included the Jimblebar Minesite in Western Australia and the Energy Connect Transmission Project spanning NSW and South Australia.
Conversely, the renewables sector experienced near-term revenue declines due to project completions and delays in wind farm approvals. However, management remains optimistic about the renewables pipeline, with significant tenders underway. The industrial segment, focused on transmission line projects, continues to build a sustainable presence backed by contracted works.
Strategic Initiatives and Capital Management
Boom Logistics is advancing a disciplined capital management program, highlighted by an expanded on-market share buy-back target of $6 million for FY26, up from $4 million. The company also paid an unfranked dividend of 2 cents per share during the half-year. These moves reflect confidence in cash flow stability and a commitment to delivering shareholder value.
Fleet management remains a strategic priority, with Boom maintaining an average fleet age of 5.9 years and investing in asset regeneration to enhance efficiency, safety, and environmental performance. Labour efficiency and asset utilisation rates held steady at approximately 85%, supporting margin expansion and operational leverage.
Safety and ESG Progress
Safety remains a core focus, with Boom maintaining ISO certification and implementing a National Safety Improvement Plan that has reduced preventable incidents. The company reported a total recordable injury frequency rate of 3.8 per million hours worked, though it acknowledged a fatal incident in July 2025. ESG initiatives continue to advance, including a Reflect Reconciliation Action Plan and preparations for inaugural sustainability reporting aligned with emerging standards.
Upgraded Outlook and Market Positioning
Reflecting the strong first-half performance and operational momentum, Boom Logistics upgraded its FY26 statutory net profit after tax guidance to approximately $10.5 million and underlying NPAT to around $11.9 million. Underlying EPS guidance was raised to 30 cents, representing a 37% increase over FY25. The company’s strategic focus remains on margin growth, contract renewals, and expanding its footprint in key sectors, particularly resources and infrastructure, while managing near-term renewables sector headwinds.
With a solid cash position, manageable gearing at 38%, and a robust contract pipeline, Boom Logistics is well positioned to capitalise on Australia’s ongoing infrastructure, mining, and energy transition investments.
Bottom Line?
Boom Logistics’ record half-year and upgraded guidance set the stage for sustained growth, but sector-specific challenges and safety vigilance remain key watchpoints.
Questions in the middle?
- How will Boom Logistics navigate the near-term delays in the renewables sector?
- What impact will the expanded share buy-back have on investor confidence and share price momentum?
- How is the company addressing safety culture following the fatal incident in mid-2025?