CTI Logistics has reported a robust half-year performance with revenue climbing 7.6% and profit before tax soaring 64.2%, underpinned by operational efficiencies and strategic investments in Western Australia.
- Revenue increased 7.6% to $178.4 million
- Profit before tax up 64.2% excluding $2.1m impairment reversal
- EBITDA rose 25.2% to $35.5 million
- Interim fully franked dividend declared at 6.0 cents per share
- Completed new 10,000 sqm Hazelmere facility and acquired Karratha property
Strong Financial Momentum
CTI Logistics Limited has delivered a compelling half-year financial result for the six months ending 31 December 2025, demonstrating resilience and growth in a competitive logistics sector. Revenue rose by 7.6% to $178.4 million, reflecting increased customer demand across its transport and logistics services. More notably, profit before tax surged 64.2% to $15.3 million when excluding a $2.1 million impairment reversal related to freehold land.
The company’s EBITDA climbed 25.2% to $35.5 million, signalling improved operational efficiency and cost control. This performance was driven by stronger freight volumes, expansion of operations in Western Australia, and better utilisation of the transport fleet.
Strategic Investments and Asset Growth
CTI Logistics invested $9 million in vehicle and equipment upgrades during the period, alongside completing a new 10,000 square metre facility in Hazelmere, WA. This development supports the company’s regional freight hub and underpins its growth ambitions in Western Australia.
The Group’s net assets increased by 7% to $137.4 million, bolstered by a significant uplift in property valuations. Independent assessments place the value of owned properties at $184.1 million, a 64% premium over their carrying value, highlighting the strength of CTI’s balance sheet and its strategic property holdings.
Dividend and Shareholder Returns
Reflecting confidence in its financial position, CTI declared a fully franked interim dividend of 6.0 cents per share, payable on 31 March 2026. This represents an increase from the prior interim dividend of 5.0 cents, rewarding shareholders amid the company’s strong earnings growth.
Outlook and Expansion Plans
While the operating environment remains challenging to forecast, CTI Logistics remains optimistic about the freight sector’s prospects. The company cites ongoing population growth, regional development, and rising e-commerce activity as key drivers. It anticipates continued industry consolidation and is actively evaluating acquisition opportunities to expand its footprint.
Post-period, CTI acquired an adjacent property in Karratha, WA for $5.75 million, furthering its regional transport business strategy. This move signals a commitment to strengthening its presence in Western Australia’s growing logistics market.
Bottom Line?
CTI Logistics’ strong half-year results and strategic property investments position it well for growth, but market consolidation and economic uncertainties warrant close watch.
Questions in the middle?
- How will recent property acquisitions impact CTI’s future earnings and cash flow?
- What are the company’s plans for integrating potential acquisitions amid industry consolidation?
- How might rising operational costs affect margins despite current efficiency gains?