LGI Limited reported robust half-year results for December 2025, showcasing strong revenue and profit growth alongside operational expansion and strategic debt repayment.
- Revenue up 20.2% to $20.3 million
- Statutory EBITDA increased 33.1% to $9.7 million
- Renewable electricity generation rose 40.7%
- Fully franked interim dividend declared at 1.25 cents per share
- Completed $56.3 million capital raising and repaid CBA debt facility
Strong Financial Momentum
LGI Limited has delivered a compelling half-year performance for the period ending 31 December 2025, with revenue climbing 20.2% to $20.3 million and statutory EBITDA surging 33.1% to $9.7 million. Net profit after tax rose 28.4% to $3.1 million, reflecting the company’s effective operational execution and growing market footprint in renewable energy and carbon abatement.
Operational Expansion Drives Growth
Key operational metrics underpinning this financial uplift include a 37.4% increase in biogas flows to 82 million cubic metres and a 40.7% jump in renewable electricity generation to over 70,000 megawatt hours. The commissioning of the Sydney Eastern Creek Power Station in June 2025 notably contributed to this surge. Additionally, LGI created 270,711 Australian Carbon Credit Units (ACCUs), up 19.1% from the prior corresponding period, reinforcing its leadership in carbon abatement.
Strategic Capital Management and Debt Reduction
LGI successfully completed a $56.3 million capital raising through a placement and share purchase plan, netting $54.3 million after costs. This capital injection enabled the full repayment of its Commonwealth Bank of Australia (CBA) project loan, significantly strengthening the balance sheet. The company ended the half with net cash of $16.3 million and a net debt to EBITDA ratio near zero, positioning it well for future growth investments.
Dividend and Governance Updates
Reflecting confidence in ongoing performance, LGI declared a fully franked interim dividend of 1.25 cents per share, payable in March 2026. Meanwhile, the company announced the planned retirement of CFO Dean Wilkinson in September 2026, with recruitment underway to ensure a smooth transition. LGI also obtained an Australian Financial Services Licence, enhancing its capacity for hedging and client services.
Outlook and Market Position
With 36 contracted landfill biogas sites across Queensland, New South Wales, and the ACT, LGI continues to consolidate its position as a domestic leader in landfill gas recovery and renewable energy generation. The company’s vertically integrated model, combining engineering, operations, and environmental product sales, supports resilient revenue streams. However, a 22.8% decline in operating cash flow signals the need for close monitoring of working capital and tax payments in the coming periods.
Bottom Line?
LGI’s half-year results highlight strong growth and balance sheet repair, setting the stage for continued expansion amid evolving renewable energy markets.
Questions in the middle?
- How will LGI manage the CFO transition and maintain financial discipline?
- What impact will the new Australian Financial Services Licence have on hedging and risk management?
- Can LGI sustain operational growth while improving cash flow conversion?