MOVE Logistics Group reports a 98% improvement in normalised earnings before tax and a significant reduction in net debt, positioning the company on track for a profitable FY26 despite ongoing market challenges.
- Revenue declined 5% to $143.7 million amid weak market demand
- Normalised earnings before tax improved 98% year-on-year to near breakeven
- Net loss after tax narrowed by $8 million to $0.9 million
- Net debt reduced by $6.2 million to $12.8 million
- Three of four business segments now profitable; warehousing turnaround underway
Market Headwinds Temper Revenue but Earnings Improve
MOVE Logistics Group Limited (ASX/NZX: MOV) has released its interim results for the six months ended 31 December 2025, revealing a mixed but encouraging performance. Revenue and other income fell 5% year-on-year to $143.7 million, reflecting continued subdued customer activity and demand in a challenging economic environment. Despite this, the company’s disciplined cost management and efficiency initiatives have driven a near break-even normalised earnings before tax (NEBT) result of $(0.1) million, a 98% improvement compared to the prior corresponding period.
Progress on Transformation and Segment Performance
MOVE’s transformation strategy is showing tangible results, with three of its four business divisions now delivering profitable earnings. The Freight & Fuel segment maintained revenue levels despite low demand and posted positive NEBT of $1.5 million, buoyed by cost efficiencies and strong fuel service performance. The International division also reported a second consecutive profitable half-year, with its trans-Tasman shipping service moving into consistent profit and onboarding new cornerstone customers.
The Specialist segment, known for heavy haulage and oversized freight, remained profitable with a NEBT of $1.0 million, supported by a robust project pipeline and increasing activity in energy generation and Pacific Island projects. Meanwhile, the Warehousing division, which has faced sector-wide challenges including excess capacity and weak demand, is in the early stages of a turnaround. It recorded a NEBT loss of $(2.5) million but has implemented a clear productivity and sales growth plan, including rightsizing its property footprint.
Balance Sheet Strength and Financing Initiatives
Financial discipline is evident in MOVE’s balance sheet management. Net debt was reduced by $6.2 million to $12.8 million, supported by an improved operating cash flow of $17.0 million, up $8.1 million year-on-year. The company has secured a new $22 million invoice finance facility with BNZ, set to commence in November 2026, replacing the existing Pacific Invoice Finance arrangement and expected to lower financing costs significantly.
Additionally, MOVE has negotiated amendments with ANZ Bank to extend loan facilities through to August 2027 and to ease covenant requirements, providing greater balance sheet flexibility as the company progresses through its four-year New Horizons roadmap. This roadmap outlines a phased transformation from the current RESET phase into the STEP UP phase, focusing on market growth and value creation.
Outlook Amid Economic Uncertainty
Looking ahead, MOVE acknowledges ongoing economic headwinds, including cost of living pressures, high unemployment, and interest rates that continue to suppress freight and warehousing demand. However, the company anticipates a gradual recovery in market activity throughout 2026. Management remains focused on cost control, working capital discipline, and expanding its customer base across diverse sectors to mitigate cyclical risks.
The warehousing turnaround remains a priority, with expectations that structural improvements and increased top-line growth will drive further earnings gains. MOVE remains confident in achieving its full-year guidance of positive normalised earnings before tax for FY26, marking a significant milestone in its multi-year transformation journey.
Bottom Line?
MOVE Logistics’ 1H26 results signal a company on the cusp of profitability, but the pace of economic recovery and warehousing turnaround will be key to sustaining momentum.
Questions in the middle?
- How quickly can MOVE’s warehousing division return to profitability amid ongoing sector challenges?
- What impact will the new BNZ invoice finance facility have on MOVE’s overall financing costs and liquidity?
- How resilient is MOVE’s customer base to further economic headwinds and pricing pressures?