Boom Logistics Raises FY26 EPS Guidance Amid $7 Million Contract Wins

Earnings Guidance Upgraded on Contract Momentum

Boom Logistics (ASX:BOL) has sharpened its FY26 earnings outlook, now forecasting statutory earnings per share (EPS) of 29 cents, up 31% from FY25 and exceeding its previous 26-cent guidance. Underlying EPS is expected to climb 47% to 32 cents. This upgrade reflects a robust quarter with the company securing approximately $7 million in new contracts, predominantly in energy and mining sectors, reinforcing its revenue and earnings trajectory.

The new contract wins span infrastructure, energy, and mining projects across Western Australia, New South Wales, and Victoria. Notably, Boom will support Acciona on Western Power’s Clean Energy Link North project and provide lifting services for a wind farm in western Victoria, highlighting its growing footprint in renewable energy. Mining contracts include multiple sites in Western Australia and a civil infrastructure project in Port Hedland, enhancing forward utilisation and earnings visibility into FY27.

Financial Performance and Operational Efficiency

Revenue for Q3 FY26 rose 7% year-on-year to $69.6 million, contributing to a year-to-date total of $211.8 million, up 8%. Cash reserves jumped 162% to $17.8 million, while net debt declined 12% to $91.7 million, signalling improved balance sheet health. Capital expenditure remains disciplined, with net capex expected between $15 million and $18 million for FY26, down sharply from $25.3 million the previous year, reflecting a strategic asset refresh pace.

Operational metrics continue to impress, with labour efficiency at 88% and asset utilisation also at 88% for the quarter, both improvements over the prior year. These gains stem from better workforce scheduling and fleet management, particularly across mining and infrastructure projects. Despite geopolitical pressures causing higher fuel prices, Boom has largely passed these costs onto customers or mitigated them contractually, avoiding material margin impact.

Shareholder Returns and Capital Management

In line with its capital management strategy, Boom has increased its on-market share buyback target to $7 million, up from $6 million earlier. As of 31 March 2026, $4.2 million has been spent repurchasing and cancelling 2.7 million shares, approximately 7% of issued capital as of 30 June 2025. This approach aims to return 40%–60% of prior year operating NPAT to shareholders through buybacks and/or dividends, maintaining a disciplined capital allocation framework.

Managing Director Lester Fernandez commented on the quarter: “Demand remains strong across our core sectors despite a more uncertain macroeconomic backdrop, with disciplined execution supporting another solid quarterly result. The outlook for the business remains positive, with early signs of increased activity in the energy sector as infrastructure and wind projects begin to ramp up.” Fernandez’s leadership has been pivotal since his appointment, focusing on safety and operational excellence, as detailed in previous coverage of his tenure and company performance improvements.

Positioning for Growth in Energy Transition

Boom’s pipeline is bolstered by sustained investment in key commodities and the energy transition, with particular momentum in transmission and renewable energy projects. This sector focus aligns with broader infrastructure trends and Boom’s strategic positioning as a leading provider of complex lifting and project logistics solutions. The company’s contract wins and operational discipline suggest it is well placed to capitalise on this demand, though execution in the coming quarters will be critical to sustaining growth.

Earlier in FY26, Boom reported record half-year revenue and expanded its share buyback program, signalling strong operational momentum despite sector challenges. These developments, combined with the latest contract wins and guidance upgrade, paint a picture of a company navigating macroeconomic uncertainties with cautious optimism and strategic agility.