Highlights:

  • Net profit after tax for H1 FY26: NZD 52.5 million.
  • EBITA margin improved to 13.4% with EBITA of NZD 96.5 million.
  • Interim dividend declared at 21 cents per share, up 10.5% from last year.

Freightways Limited (NZX:FRW) has reported a net profit after tax of NZD 52.5 million for the first half of FY26, reflecting growth in revenue, earnings and operational efficiency. The company also declared an interim dividend of 21 cents per share, supporting its capital management strategy and shareholder returns.

Revenue and Profit Highlights

Group revenue for the half year increased by 8.5% to NZD 718.2 million. Earnings before interest, tax, and amortisation (EBITA) rose by 12.2% to NZD 96.5 million, lifting the EBITA margin to 13.4% from 13.0% in the prior corresponding period. Basic earnings per share increased to 29.3 cents.

Divisional Performance

The Express Package and Business Mail division recorded revenue growth, higher EBITA, and margin improvement. Gains were driven by same-customer volume growth, market share increases, and pricing measures implemented at the start of FY26. IT development costs for a new billing platform (Project Evolve) were incurred but did not prevent overall margin gains.

In New Zealand, demand shifted towards economy services, while in Australia, Allied Express achieved volume growth, improved EBITA, and benefited from new business wins.

The Information Management and Waste Renewal division delivered mixed results. Revenue was largely flat, though EBITA increased modestly. Margin improvement came from operational efficiency, pricing initiatives, and growth in Secure Destruction and Medical Waste services. The division incurred A1.6 million in one-off costs that are not expected to recur.

Dividends and Capital Management

Freightways declared an interim dividend of 21 cents per share, fully imputed in New Zealand and approximately 46% franked in Australia. The Group’s balance sheet remains positioned to fund investment, pursue complementary acquisitions, and remain within capital management policy, even following the acquisition of VTFE in Victoria, Australia.

Outlook and Strategy

The company aims to continue improving margins while stabilising costs, particularly labour. Implementation of the new New Zealand billing platform is expected to support pricing discipline and longer-term margin outcomes. Same-customer volumes are expected to improve in the second half of FY26, driven by modest economic recovery. Margin improvement is projected to continue, excluding one-off air network transition costs. Freightways remains focused on service quality, customer retention, new business acquisition, and strategic mergers and acquisitions in the Australian express network.

Freightways’ first-half FY26 results show growth in revenue, EBITA, and net profit, alongside continued shareholder returns through the interim dividend. Divisional gains, operational efficiencies, and ongoing investments in systems and acquisitions position the Group for steady performance in the second half of FY26.

FAQs

Q1: What was Freightways’ net profit for H1 FY26?
A1: Freightways reported a net profit after tax of NZD 52.5 million for the first half of FY26.

Q2: How much dividend did shareholders receive?
A2: An interim dividend of 21 cents per share has been declared, up 10.5% from the prior corresponding period.

Q3: How did Freightways’ divisions perform?
A3: The Express Package and Business Mail division recorded revenue and EBITA growth, while the Information Management and Waste Renewal division delivered modest EBITA growth with flat revenue.