Lindsay Australia Limited reported a robust 24.9% increase in revenue for the half-year ending December 2025, driven by its strategic acquisition of SRT Logistics and strong divisional performances. However, profit after tax declined 11.7%, reflecting competitive pricing and integration expenses.
- Revenue up 24.9% to $534.1 million
- Profit after tax down 11.7% to $12.9 million
- SRT Logistics acquisition fully integrated, boosting geographic reach
- Interim dividend declared at 2.1 cents per share, fully franked
- Capital expenditure focused on fleet and facility upgrades at $28.8 million
Strong Revenue Growth Amid Strategic Expansion
Lindsay Australia Limited (ASX: LAU) has delivered a notable 24.9% increase in revenue to $534.1 million for the half-year ended 31 December 2025. This growth was largely fuelled by the full contribution from its recent acquisition of SRT Logistics, completed on 1 July 2025, alongside solid performances across its Transport, Rural, and Hunter divisions. The acquisition has expanded Lindsay’s footprint into Tasmania and strengthened its Bass Strait shipping capabilities, diversifying its geographic and customer base.
Profitability Under Pressure from Integration and Market Dynamics
Despite the revenue surge, Lindsay’s profit after tax fell 11.7% to $12.9 million. The decline reflects a combination of competitive pricing pressures, structural cost inflation; particularly in depot labour; and one-off integration and transformation costs related to the SRT acquisition and internal system upgrades. Underlying EBITDA rose 16% to $66.3 million, but margins softened to 18.5% in the Transport division, highlighting the challenging operating environment.
Operational Highlights and Strategic Initiatives
The company’s Transport division saw revenue climb 30.6% to $384.6 million, supported by strong horticultural volumes and expanded service offerings. The Rural division grew revenue by 12.5% to $95.7 million, benefiting from favourable seasonal conditions and market share gains, while Hunter’s revenue increased 15.6% to $58.8 million, reflecting early success in its turnaround program.
Lindsay continued to invest in fleet modernisation and facility upgrades, including the completion of a new Perth facility and an Adelaide depot upgrade, with capital expenditure totalling $28.8 million. These investments aim to enhance network capacity and operational efficiency, positioning the company for improved utilisation and operating leverage.
Dividend and Financial Position
The Board declared a fully franked interim dividend of 2.1 cents per share, slightly down from 2.3 cents the previous year, reflecting a payout ratio of 59.2%. Lindsay maintains a disciplined capital allocation approach, balancing dividend payments with ongoing investment and debt management. The company’s net tangible assets per share decreased to 26.69 cents, influenced by recent acquisitions and capital expenditure.
Outlook and Market Context
Looking ahead, Lindsay Australia remains optimistic about medium to long-term industry fundamentals, supported by population growth and increasing freight demand. The integration of SRT Logistics is progressing ahead of schedule, with expected cost synergies and revenue opportunities emerging. However, the near-term environment remains competitive, with pricing pressures and elevated operating costs persisting. Industry indicators suggest ongoing capacity rationalisation, which could reshape the competitive landscape.
Bottom Line?
Lindsay Australia’s strategic expansion sets the stage for future growth, but near-term profit recovery hinges on navigating competitive pressures and realising integration synergies.
Questions in the middle?
- How quickly will Lindsay Australia convert integration synergies from SRT Logistics into sustained profit growth?
- What impact will ongoing cost inflation and pricing pressures have on margins in the second half of FY26?
- How will industry capacity rationalisation affect Lindsay’s competitive positioning and pricing power?