MOVE Logistics returns to profit with $290.6m revenue and reduced net debt
MOVE Logistics Group has completed its strategic Reset phase, reporting a return to positive normalised earnings and improved cashflow in FY26, despite ongoing challenges in its warehousing division.
- Positive normalised earnings of $1.6m in FY26
- Revenue growth of 1.5% to $290.6m
- Net debt reduced by 38% to $10.4m
- Three of four divisions profitable; Warehousing remains under pressure
- New BNZ invoice finance facility to reduce finance costs from November 2026
Return to Profit Marks Strategic Reset Completion
MOVE Logistics Group (NZX:MOV) has delivered on its promise to shareholders by returning to positive normalised earnings before tax (NEBT) of $1.6 million in the 2026 financial year, a sharp turnaround from a $10.0 million loss the previous year. This milestone caps the completion of the company’s Reset phase under its New Horizons strategy, setting the stage for a growth-focused Step-Up phase.
The company’s revenue nudged up 1.5% to $290.6 million amid a subdued and uneven recovery in New Zealand’s economy. Despite inflationary pressures and competitive market conditions, MOVE improved gross margin dollars by 2.5% to $85.5 million and lifted its gross margin percentage slightly to 29.4%. Operating cashflow rose by $7.3 million year-on-year to $32.6 million, while free cashflow nearly tripled to $6.3 million.
Segment Performance Highlights Mixed Fortunes
Three of MOVE’s four core divisions reported profitable normalised earnings, reflecting stronger execution and commercial discipline. The Freight & Fuel division led the charge with revenue growth of 5.2% to $198.6 million and a NEBT of $3.2 million, benefiting from a successful turnaround and solid customer partnerships in fuel delivery.
The Specialist division posted its strongest result in three years, with a 9.4% revenue increase to $19.9 million and NEBT rising 27% to $3.0 million. This was underpinned by new projects in renewable energy and infrastructure that commenced in the second half of FY26, alongside growing work in the Pacific Islands.
International operations also showed robust growth, with revenue up 19.8% to $30.7 million and a striking 1239.6% jump in NEBT to $4.4 million. The trans-Tasman shipping service returned to profitability, supported by new cornerstone customers and increased coastal shipping utilisation.
Warehousing, however, remains the company’s Achilles’ heel. Revenue fell 23% to $41.3 million, and the division recorded a normalised loss before tax of $5.1 million, albeit an 11.6% improvement year-on-year. MOVE attributes this to ongoing sector-wide challenges such as excess capacity, subdued demand, and aggressive competitor pricing. Management has a clear turnaround plan focused on winning new customers, improving utilisation, and diversifying the customer base.
Balance Sheet Strengthened Amid Financing Enhancements
MOVE has aggressively reduced net debt by 38% to $10.4 million, improving leverage to 1.02x net debt to EBITDA (excluding leases) from a negative 7.9x the prior year. This was supported by the sale of surplus assets and disciplined capital management.
The company extended its ANZ banking facilities through to August 2027 and secured a new $22 million invoice finance facility with BNZ, set to commence in November 2026. This new facility is expected to reduce ongoing finance costs and optimise working capital, further underpinning MOVE’s financial resilience.
Leadership and Strategy Focus on Sustainable Growth
CEO Paul Millward highlighted that the Reset phase has created a leaner, more capable organisation with a cost base and network aligned to current market conditions. “Our FY26 performance demonstrates that our strategy is working,” he said, emphasising a shift from structural change to value creation.
Millward outlined priorities for FY27 including accelerating the warehousing turnaround, strengthening the core freight business, expanding margins through operational and commercial excellence, and investing in digital capabilities such as a new customer portal launching in the first half of 2027. The company is also focused on building culture, leadership, and sales excellence to support long-term success.
Chair Julia Raue acknowledged the progress but cautioned that results are not yet where they need to be. She underscored management’s focus on sustainable earnings growth through stronger customer relationships, disciplined investment, and operational improvement.
Outlook Tempered by Economic Uncertainty
While MOVE is positioned to capitalise on an eventual market recovery, the company remains cautious about the pace and timing of economic improvement. The warehousing division’s turnaround remains a key challenge without a clear timeline for profitability restoration.
The company’s diversified logistics model, national network, and strategic partnerships provide a solid platform to navigate ongoing headwinds. MOVE’s focus on disciplined execution, customer service excellence, and financial strength aims to drive profitable growth and shareholder value in the coming years.
With a stronger balance sheet, positive cashflow, and a clear roadmap, MOVE Logistics is moving from recovery to growth, though the path ahead will require continued focus and execution.
This article builds on MOVE’s FY26 earnings target achievement and detailed segment analysis, highlighting the company’s financial and strategic progress.
Bottom Line?
MOVE Logistics has turned a corner with profit and debt reduction, but the warehousing turnaround and economic uncertainty pose ongoing tests.
Questions in the middle?
- How quickly can MOVE’s warehousing division return to profitability amid sector challenges?
- Will the new BNZ invoice finance facility materially reduce finance costs as expected?
- How will MOVE leverage digital investments like the new customer portal to gain market share?
