How Will PeopleIN’s NZ Acquisition Transform Its Asia Pacific Growth?
PeopleIN reported half-year earnings in line with expectations while strategically acquiring New Zealand’s Infrawork to bolster its infrastructure recruitment footprint across the Asia Pacific.
- H1 FY26 earnings steady at $16.1 million
- Ongoing business EBITDA down 9.2% due to visa processing delays
- Engineering, Trades and Labour division grows organically by over 44%
- Acquisition of Infrawork Holdings for NZD 24 million announced
- Post-acquisition net debt remains low at 1.5x EBITDA with no interim dividend
Steady Earnings Amid Operational Challenges
PeopleIN has delivered half-year results for FY26 that align with market expectations, reporting earnings of $16.1 million. Despite a slight dip in ongoing business EBITDA to $10.5 million; a 9.2% decline compared to the previous corresponding period; this outcome was largely influenced by short-term delays in visa processing for PALM workers, a critical labour source for the company’s operations. The firm anticipates a rebound in these numbers in the second half of the financial year.
Strong Organic Growth in Core Divisions
Notably, PeopleIN’s Engineering, Trades and Labour division demonstrated robust organic growth exceeding 44%, driven primarily by activity in Queensland. This surge reflects increasing confidence and investment in infrastructure projects within the region, positioning PeopleIN favourably to address acute labour shortages in construction and related sectors.
Strategic Acquisition to Broaden Regional Footprint
In a significant strategic move, PeopleIN announced the acquisition of Infrawork Holdings, New Zealand’s largest provider of skilled migrant contract labour and migration services, for NZD 24 million in cash. This deal expands PeopleIN’s recruitment capabilities across the Asia Pacific, introducing a cross-border labour mobility model that supports critical sectors including infrastructure construction, manufacturing, food services, and agriculture in both Australia and New Zealand.
The acquisition is expected to contribute NZD 5 million in annual EBITDA, with potential earnout payments linked to performance targets over the next three years. Completion is anticipated in the third quarter of FY26, subject to customary conditions.
Financial Discipline and Future Outlook
Following the acquisition and ongoing share buy-back program, PeopleIN expects to maintain a conservative net debt position at 1.5 times normalised EBITDA. The company has opted not to declare an interim dividend, prioritising balance sheet strength and preserving capacity for further accretive acquisitions. This financial discipline underscores PeopleIN’s commitment to long-term growth sectors such as infrastructure construction, manufacturing, agriculture, and food services.
Incoming Managing Director Tom Reardon highlighted the company’s transformation strategy, focusing on resilient and high-performing verticals while divesting lower-growth assets. The momentum in Queensland’s infrastructure sector and the expanded regional footprint through Infrawork position PeopleIN to capitalise on evolving labour market demands.
Bottom Line?
PeopleIN’s strategic acquisition and focused growth approach set the stage for a stronger H2, but visa processing and integration risks remain key watchpoints.
Questions in the middle?
- How quickly will visa processing delays resolve and impact H2 earnings?
- What synergies and integration challenges will Infrawork bring post-acquisition?
- Could further acquisitions accelerate PeopleIN’s regional dominance?
