Boom Logistics reported a 38% rise in operating net profit after tax to $12.8 million on 2% revenue growth to $271 million, underpinned by contract wins and disciplined capital management.
- Operating NPAT up 38% to $12.8 million
- Revenue grows 2% to $271 million
- EBITDA rises 4% to $51.8 million
- Fleet utilisation steady at 86%
- On-market buyback of $7 million completed
Steady Revenue Growth Backed by Contract Wins
Boom Logistics (ASX:BOL) has posted a solid set of FY26 results, with revenue edging up 2% to $271 million, supported by ongoing strength in its core resources and infrastructure sectors. The company secured and renewed more than $230 million in contracts during the year, including a notable extension with BHP at Olympic Dam expected to generate around $40 million annually over an initial five-year term, reinforcing Boom’s foothold in long-term contracted work.
This steady top-line growth reflects Boom’s national footprint and diversified lifting and project logistics services, spanning mining, infrastructure, renewables, and industrial maintenance. Resources accounted for 55% of revenue, infrastructure 20%, renewables 16%, and industrials 9%, highlighting a balanced portfolio aligned with Australia’s critical infrastructure and energy transition projects.
Earnings and Margins Improve on Operational Discipline
The company’s underlying operating net profit after tax rose 38% to $12.8 million, excluding one-off items including a $2.3 million charge related to the Clarke Creek fatality and a $0.8 million recoupment of misused funds. Statutory NPAT was $11 million, down 53% from FY25 due to a prior year $14 million deferred tax benefit.
EBITDA increased 4% to $51.8 million, with EBIT up 11% to $18.6 million, driven by tighter cost control, improved fleet utilisation, and stronger pricing discipline. Earnings per share on an operating basis climbed 48% to 33 cents. Fleet utilisation and labour efficiency remained stable at 86%, supporting consistent operational performance.
Capital Management and Balance Sheet Strength
Boom maintained disciplined capital management, investing $21.3 million in fleet capability while completing $7 million of on-market share buybacks. Net capital expenditure was $16.7 million, down 34% from the prior year, reflecting a focus on asset regeneration and optimisation.
The company’s net debt declined to $88.3 million, improving gearing to 39.5%, comfortably within the target range of 35% to 45%. Cash at bank rose 73% to $24.7 million, bolstering financial flexibility for growth investment and shareholder returns. The Board declared a final unfranked dividend of 2.25 cents per share payable on 30 September 2026.
Safety and Workforce Developments Amid Ongoing Investigation
Safety remains a core focus, with the Total Recordable Injury Frequency Rate (TRIFR) improving to 2.0 per million hours worked, down from 5.75 in FY25. However, the year was marked by the tragic fatality of a Boom employee at Clarke Creek in July 2025. The company continues to cooperate with regulatory investigations and has implemented further risk management and operational reviews.
Workforce strength and capability development remain priorities, with over 700 employees nationally. Boom continues to invest in training and leadership to support safer operations and sustainable growth across its key sectors.
Outlook Focused on Margin Improvement and Sustainable Growth
Looking ahead to FY27, Boom Logistics plans to build on its operational momentum by improving pricing and margin discipline, enhancing labour recovery and fleet productivity, and allocating capital selectively to opportunities meeting return thresholds. The company enters the new financial year with approximately $200 million of secured contract work and a strong pipeline across mining, infrastructure, and selective renewables.
Management has signalled a continued focus on translating its market position into stronger margins, reliable cash flow, and improved shareholder returns, targeting a return of 40% to 60% of prior year operating NPAT to shareholders via dividends and buybacks. The company expects cash tax payments to increase over the medium term as tax losses are exhausted.
Despite a challenging macroeconomic environment and sector headwinds, Boom’s disciplined approach to capital allocation, operational execution, and customer engagement positions it to navigate market volatility while pursuing sustainable, profitable growth.
Bottom Line?
Boom Logistics’ FY26 results underline the payoff from disciplined execution and contract focus, but sustaining EPS growth will hinge on continued margin improvement and cash flow conversion amid market uncertainties.
Questions in the middle?
- How will Boom balance growth investment with capital discipline in a potentially volatile FY27?
- What impact will the ongoing Clarke Creek investigation have on operational and safety practices?
- Can Boom sustain improved margins while expanding selectively into renewables and industrial sectors?