South Port NZ Reports Record FY26 Profit on Cargo and Infrastructure Gains

Record Profit Fueled by Cargo Growth and Operational Efficiency

South Port New Zealand (NZX:SPN) reported a standout financial year ended 30 June 2026, with net profit after tax soaring 21% to $16.11 million. This leap was underpinned by a robust 11.5% increase in total cargo volumes, reaching a record 3.96 million tonnes, alongside a 18.5% jump in container throughput to an all-time high of 62,000 TEU. The port's diversified trade mix, including bulk agricultural products, forestry exports, and project cargo linked to renewable energy, helped sustain revenue growth despite global uncertainties.

Bulk and Container Volumes Drive Revenue Expansion

Bulk cargo volumes climbed 9.7% to 3.3 million tonnes, with revenue per tonne rising 8%, reflecting strong demand for fertiliser, stock feed, and forestry products. Notably, project cargo related to wind farm components contributed over 16,000 tonnes, supporting the region's renewable energy ambitions. Container volumes surged, boosted by increased ship calls from MSC and enhanced Trans-Tasman services, which accommodated growing dairy and red meat exports. Revenue per TEU grew 6%, driven by higher rates and container handling activity.

Infrastructure Investments Target Future Growth

South Port continued to invest strategically during FY26, acquiring additional warehousing at the Bluff Freight Centre to support expanding dairy exports. Maintenance capex rose to $5.2 million, focusing on critical assets like the Syncrolift facility and container handling equipment. Growth capex also increased to $5.1 million, signaling readiness for medium to long-term expansion. The company is undertaking a 30-year port planning exercise aimed at optimising landside productivity and infrastructure utilisation, anticipating further investment in tugs and mobile cranes to meet future cargo demands.

Leadership Transition Amid Strong Regional Economy

FY26 marked a significant leadership shift with CEO Nigel Gear stepping down after over three decades, replaced by Derek Nind in July 2026. Chair Philip Cory-Wright, who served 16 years on the board, will retire in October, with Nicola Greer set to assume the role. The new leadership team inherits a port well-positioned to capitalise on Southland's economic momentum, supported by strong agricultural and industrial activity, including the recovering New Zealand Aluminium Smelter volumes and burgeoning wind farm projects.

Cautious Outlook for FY27 Amid Absence of Project Cargo

While trade volumes are expected to hold steady in FY27, the company flagged the absence of one-off wind farm project cargo as a downside risk. Additional investments in personnel and maintenance may also weigh on earnings. Nevertheless, South Port remains focused on disciplined capital allocation, operational safety, and customer service to sustain growth and shareholder returns. The board declared a full-year dividend of 29.0 cents per share, reflecting confidence in the port’s financial health and future prospects.