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Highlights

  • Macquarie Research issued an Outperform rating on Mainfreight with a price target of AUD 66.67, implying a 22.77% potential rise.
  • Ord Minnett maintained a Buy rating with a target of AUD 65.59, indicating a 20.77% increase.
  • Mainfreight reported revenue of AUD 5.24 billion, up 11%, and net profit of AUD 274.3 million, up 31% for FY25.

Mainfreight Limited (NZX:MFT) has received positive rating from two analysts. Macquarie Research’s analyst has issued an Outperform rating with a price target of AUD 66.67, implying a 22.77% potential rise and Ord Minnett’s analyst has maintained a Buy rating with a target of AUD 65.59, indicating a 20.77% increase.

Recent Financial Performance

In the 12 months ended 31 March 2025, the company reported an increase in revenue but noted a marginal decline in profit before tax due to higher operating costs.

Group revenue rose 11% YoY to AUD 5.24 billion, while profit before tax declined 3% to AUD 383.6 million. Net profit after tax increased 31% to AUD 274.3 million, partly due to the absence of a one-off non-cash tax adjustment that had affected the prior year’s result.

When adjusted for foreign exchange impacts, revenue increased 9% and profit before tax decreased 4%.

Performance Supported by Australian Operations

Mainfreight stated that its Australian operations delivered a notable contribution, becoming the company’s largest region by both revenue and profit. Sales revenue increased across all five regions — New Zealand, Australia, Asia, the Americas, and Europe — and across its three main divisions: Transport, Warehousing, and Air & Ocean.

However, Asia, the Americas, and New Zealand recorded lower profits. Management attributed this to competitive pressure and higher property-related overheads as the company transitions to new facilities.

Freight volumes increased across all segments compared with FY24: Air freight volumes rose 8%, Sea freight 6%, Domestic transport 3%, and Warehouse orders 2%.

Cash Flow and Balance Sheet

Group operating cash flows improved to AUD 584 million from AUD 505 million in the prior year. Net capital expenditure totalled AUD 234.5 million, with spending distributed as follows: AUD 111.2 million on property, AUD 75 million on warehousing racking and fit-out, and AUD 48 million on plant, equipment, and software.

Total debt facilities stand at AUD 504 million, with AUD 125 million drawn. Net funds at 31 March 2025 were AUD 14.4 million, compared to AUD 22 million a year earlier.

Mainfreight indicated that while network investment will continue, capital expenditure will be more measured given the scale of recent projects and expectations of slower economic growth.

Capital Investment and Dividend

Between FY26 and FY27, total planned capital expenditure is projected at NZD 450 million (approx. AUD 416 million). Of this, NZD 330 million (approx. AUD 305 million) will be allocated to property, racking, and fit-out, distributed across regions as follows: New Zealand (NZD 73.4m), Australia (AUD 141.3m), Americas (USD 28.8m), Europe (EUR 25.6m), and Asia (USD 1m).

The Board approved a final dividend of 87 cents per share, fully imputed at a 28% tax rate, with payment scheduled for 18 July 2025. The full-year dividend totals 172 cents per share, unchanged from FY24.

Mainfreight’s branch network remains steady at 337 locations across 27 countries, with further expansion expected in line with customer demand and freight volume growth.