LGI Limited Posts 35% Profit Rise and Expands Renewable Capacity Target

Strong Earnings Growth Driven by Operational Scale

LGI Limited (ASX:LGI) has posted a standout financial year ending 30 June 2026, with statutory net profit after tax soaring 35.5% to $8.8 million. This performance rides on a 17.7% lift in revenue to $43.3 million and a 25.5% surge in statutory EBITDA to $21.8 million, comfortably within management’s guided range. The company’s underlying EBITDA margin expanded by 356 basis points to 55%, reflecting tight cost control amid inflationary pressures.

Operationally, LGI’s biogas flows jumped 33.3% to 170.2 million cubic meters, fueling a 29.1% increase in renewable electricity generation to 140.8 GWh and an 18.4% rise in Australian Carbon Credit Units (ACCUs) created to 584,191. The company’s renewable power stations maintained a robust 97% availability rate, underscoring operational reliability.

Capital Raise and Debt Facility Boost Growth Ambitions

In October 2025, LGI completed a $56 million capital raising, a pivotal move enabling an expansion of its renewable energy capacity target from 56 MW to over 80 MW. This infusion, combined with an increased debt facility limit of $82.5 million (plus a $20 million accordion), provides the financial firepower to accelerate development across key sites including Canberra, Belrose, and Nowra.

The company has already commissioned eight new carbon abatement projects during FY26 and is advancing battery installations to enhance the flexibility and dispatchability of its generation fleet. The Canberra site, featuring a 12 MW / 24 MWh battery installation, is progressing through final commissioning and will increase LGI’s capacity under management by 55% to 33 MW once operational.

Strategic Positioning Amid Energy Market Dynamics

LGI’s strategy to own a flexible, distributed generation and storage fleet is well-timed as Australia’s National Electricity Market grapples with coal plant retirements and rising demand. The company’s proprietary Dynamic Asset Control System (DACS) enables 24/7 automated operation and market-responsive dispatch, allowing LGI to capitalise on price volatility and intraday electricity price differentials.

Notably, LGI achieved a realised electricity price of $97.28 per MWh in FY26, approximately 35% above the AEMO average, supported by hedging strategies and battery-backed generation. This premium pricing underpins margin expansion and positions LGI to navigate the evolving Renewable Electricity Guarantee of Origin (REGO) scheme.

Dividend Growth and Governance Updates

Reflecting its strong financial position, LGI declared a fully franked final dividend of 1.35 cents per share, lifting the total FY26 dividend to 2.60 cents per share, a 4% increase over the prior year. The company’s net cash position improved to $8.1 million, with net debt turning negative to -$6.6 million following debt repayments post-capital raise.

Chairman Vik Bansal announced his retirement in 2026, marking the end of a tenure that oversaw LGI’s transformation from a private enterprise to a thriving ASX-listed company. The Board is actively recruiting a successor to continue steering LGI’s growth trajectory.

Executive Remuneration Aligned to Performance

LGI’s executive remuneration framework blends fixed and variable components, with short-term and long-term incentives tied to earnings and shareholder returns. The CEO and CFO received performance rights under the Omnibus Incentive Plan, with vesting contingent on earnings per share growth and total shareholder return relative to peers over a three-year horizon.

With a diversified revenue base spanning renewable electricity sales, carbon abatement credits, and infrastructure services, LGI’s vertically integrated model continues to deliver operational leverage and financial resilience.