Lindsay Australia Limited reported a 31.5% rise in net profit after tax to A$22.9 million for FY26, driven by full-year SRT Logistics integration and organic growth. The company declared a fully franked 1.7 cent final dividend and secured a major Woolworths secondary freight contract in North Queensland.
- Revenue up 26.4% to A$1.086 billion
- Net profit after tax rises 31.5% to A$22.9 million
- Full-year contribution from SRT Logistics acquisition
- Secured $30–36 million Woolworths secondary freight contract
- Invested A$40 million in fleet and depot upgrades
Record Revenue and Profit Growth
Lindsay Australia Limited (ASX:LAU) has posted a milestone financial year for FY26, with revenue breaching the $1 billion mark for the first time, reaching A$1.086 billion, a 26.4% increase on the prior year. Net profit after tax surged 31.5% to A$22.9 million, reflecting the benefits of strategic acquisitions and organic expansion.
Underlying EBITDA climbed 25.6% to A$127.8 million, while underlying EBIT grew 37.7% to A$60.4 million, underscoring improved operational efficiency amid subdued market conditions. Earnings per share rose to 6.3 cents basic and diluted, with an underlying EPS of 7.6 cents, up 10% on FY25.
SRT Logistics Integration and Network Expansion
The full-year contribution from the acquisition of SRT Logistics, Tasmania’s largest refrigerated transport operator, was a key driver of growth. The integration has been completed successfully, delivering targeted EPS accretion and synergies including A$5 million capital redeployment and A$1.5 million in cost savings. Tasmania now accounts for 19% of the Group’s transport revenue, improving geographic balance and smoothing seasonal earnings volatility.
Further network expansion included the acquisition of GJ Freight in Southwest Western Australia and Nagambie Equine Rural stores in Victoria, enhancing the Group’s presence in key horticultural regions. Capital investment of A$40 million focused on fleet renewal, including the addition of 25 High Productivity Vehicle (HPV) combinations, and infrastructure upgrades such as the new Perth depot and expansion of the Adelaide site.
New Woolworths Contract Signals Secondary Freight Growth
Lindsay secured a landmark five-year contract with Primary Connect to supply transport services to approximately 40 Woolworths stores from Mackay to Cairns in North Queensland. This marks the Group’s first significant mainland secondary freight market position, expected to generate annual revenue of A$30–36 million. The contract rollout begins in October 2026 with full operations by July 2027, supported by dedicated capital investment of A$20 million and new operating sites including greenfield locations in Townsville and Cairns.
Financial Discipline Amid Market Challenges
Lindsay maintained a disciplined capital management approach, closing FY26 with net leverage at 1.92x, within the target range of 1.0x to 2.0x. The Group plans approximately A$57 million in capital expenditure for FY27, including growth capital for the Woolworths contract and sustaining capital for fleet and infrastructure.
Safety performance improved significantly, with a 34% reduction in the Lost Time Injury Frequency Rate to 10.9. The Group continues to address risks including input cost inflation, labour shortages, fuel price volatility, cyber security, and climate-related challenges, supported by a robust Enterprise Risk Management Framework.
Sustainability and Climate Risk Initiatives
In its first Climate-related Disclosures report, Lindsay outlined its commitment to sustainability, including a comprehensive ESG roadmap focused on CO2 reduction and fleet efficiency. The Group’s total greenhouse gas emissions for FY26 were 188,679 tCO2e, primarily from Scope 1 fuel combustion. Lindsay is investing in alternative fuels, energy efficiency, and climate resilience measures, while integrating climate risk into strategic planning and governance.
Despite current challenges, Lindsay’s diversified service offering and integrated national network position it to capture market share as industry capacity rationalises and demand recovers. The company’s strategic focus now shifts from network build to yield extraction and margin improvement.
Bottom Line?
Lindsay Australia’s FY26 results cap a multi-year growth phase, with the new Woolworths contract and sustainability initiatives setting the stage for a transition from expansion to value extraction.
Questions in the middle?
- How will Lindsay manage margin pressure amid competitive refrigerated transport markets?
- What impact will the rollout of the Woolworths secondary freight contract have on FY27 earnings?
- How effectively can Lindsay translate its ESG roadmap into measurable operational and financial outcomes?