Mainfreight rebounds sharply as freight volumes lift first-half profit

Freight volumes drive Mainfreight earnings rebound

Mainfreight Limited (NZX:MFT) has more than recovered from last year’s weak first half, reporting a 66.4% increase in net profit to NZ$155.4 million for the six months ended 30 September 2026. Revenue rose 19.8% to NZ$3.12 billion, while profit before tax climbed to NZ$219.2 million. The company said the improvement reflected higher customer activity, market share gains and stronger freight volumes across all regions, although the comparison was against a disappointing prior-year period.

Adjusted for foreign exchange, revenue increased 14.9% and profit before tax rose 58.6%. Transport was the strongest contributor: revenue increased 24.2% to NZ$1.47 billion and divisional profit before tax almost doubled to NZ$116.4 million. Tonnes moved rose 7%, cubic metres increased 9% and consignments grew 4%, while fuel adjustment factors accounted for NZ$143 million of the transport revenue increase.

Australasia remains the earnings anchor

New Zealand revenue rose 20.4% to NZ$693.1 million, with profit before tax up 51.9% to NZ$66.9 million. Mainfreight cited stronger road and rail utilisation, new customer gains and activity from food, beverage and DIY customers. Its new 34,000-pallet Christchurch warehouse is operational and profitable, while construction has begun on a 55,000-pallet Auckland facility.

Australia also improved, with revenue up 10.1% to AU$810.8 million and profit before tax up 26.2% to AU$74.0 million. Regional branches, rail and full-truck-load utilisation and warehouse efficiency supported the result, while the removal of overflow warehouse leases contributed to profitability. The performance marks a notable improvement from the mixed regional picture described in Mainfreight’s FY26 earnings result, when group profit before tax declined 8.5% despite revenue growth.

Europe and Americas improve, but gaps remain

Europe produced one of the largest percentage gains, with local-currency revenue up 16.7% to €358.5 million and profit before tax up 118.2% to €20.4 million. Better freight volumes, transport cross-dock efficiency and warehouse utilisation helped, although Mainfreight said margins in Air & Ocean remain under pressure as ocean freight rates rise.

The Americas moved back towards profitability, with revenue up 15.2% to US$360.8 million and profit before tax reaching US$6.9 million, compared with a US$2.3 million loss a year earlier. Transport is still loss-making, despite better service quality, customer gains and road linehaul utilisation. Management said the region remains below expectations, with only small improvements in weekly results after the half-year. Across the group, Air & Ocean revenue rose 19.1% to NZ$1.17 billion, while profit before tax increased 28.9% to NZ$67.8 million.

Cash generation supports network investment

Operating cash flow rose from NZ$209.6 million to NZ$327.8 million. Mainfreight held NZ$54 million in net funds at the half-year, with NZ$135 million drawn from total bank facilities of NZ$510 million. Net capital expenditure was NZ$97 million, including NZ$65 million on property, and planned capital expenditure is NZ$164 million through the end of FY2027, followed by NZ$93 million in FY2028.

The board approved an interim dividend of 85 cents per share, fully imputed at the 28% company tax rate, with payment scheduled for 18 December 2026. Mainfreight said trading in October and November continued the first-half improvement across Australasia, Europe and parts of the Americas, but described its outlook as cautiously optimistic. Higher interest rates, regional economic performance, elections, fuel costs and Air & Ocean margin management remain the constraints on how far this recovery can run.