The ALS Ltd (ASX: ALQ) share price is in focus after the global testing giant reported a 13.3% lift in underlying revenue to $1.7 billion and 14.7% growth in underlying EBIT for the first half of FY26, powered by a strong Commodities division and ongoing gains in Life Sciences.
Image source: Getty Images
What did ALS report?
- Underlying revenue rose 13.3% to $1.66 billion
- Underlying EBIT increased 14.7% to $287.2 million; margin up 20 basis points to 17.3%
- Underlying NPAT up 17.2% to $178.4 million; statutory NPAT up 11.8%
- Free cash flow grew 10.8% to $303.9 million
- Interim dividend up 2.6% to 19.4 cents per share (30% partially franked)
- Net debt reduced by 16.8% to $1.15 billion post equity raise
What else do investors need to know?
The Commodities business drove growth, with Minerals margins holding strong at 31.3% despite some pricing headwinds. In Life Sciences, the Food segment performed well and Environmental services grew in key APAC and EMEA regions—even as the Americas lagged and regulatory shifts affected Pharmaceuticals in Mexico.
ALS highlighted continuing investment in laboratory expansion, with $67.7 million spent in the half, and maintains liquidity above $550 million. The balance sheet is in solid shape, and the company continues to pursue bolt-on acquisitions and innovation projects, while safety performance reached record lows for incident rates.
What did ALS management say?
CEO and Managing Director Malcolm Deane said:
Amid ongoing geopolitical and macro uncertainty, the Group had a strong first half driven by strength in Commodities contrasting lower growth conditions for Life Sciences… These results demonstrate ALS' ability to create value as a diversified global testing business. Our disciplined capital deployment following the May equity raise is progressing according to plan, accelerating key capacity expansion projects while maintaining balance sheet strength… ALS is well positioned to deliver another year of growth and continue building long-term shareholder value.
What's next for ALS?
ALS has lifted its FY26 organic revenue growth guidance to 6–8% (from 5–7%) and expects a steady improvement in margins. The Commodities division is tipped to post 12–14% organic revenue growth, while Life Sciences is expected to grow 4–6%.
Management reiterated its confidence in meeting FY27 targets: $3.3 billion revenue, $600 million underlying EBIT, and a minimum EBIT margin of 19%. Watch for ongoing lab expansions and additional acquisition activity into FY26 and beyond, as ALS aims to deliver strong shareholder returns while focusing on core capital discipline and reliable service.
ALS share price snapshot
Over the past 12 months, ALS shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
