The ALS Ltd (ASX: ALQ) share price is in focus today after the company reported record FY26 results, highlighted by 10.7% revenue growth to $3.32 billion and a 25.8% boost in underlying NPAT to $381.2 million.
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What did ALS report?
- Revenue rose 10.7% year on year to $3.32 billion
- Underlying net profit after tax (NPAT) jumped 25.8% to $381.2 million
- Underlying EBIT increased 19.3% to $599.0 million; margin improved 129 bps to 18.0%
- Statutory NPAT was $318.7 million — up 24.4% on last year
- Free cash flow of $674.1 million, with EBITDA cash conversion at 92%
- Final dividend of 23.1 cents per share (partially franked), taking full year DPS to 42.5 cents
What else do investors need to know?
ALS delivered strong organic growth in its Commodities division, with revenue up 18.8%, mainly from increased mineral exploration activity. The Life Sciences division grew revenue by 6%, led by strong performance in its Food business, while Environmental saw softer conditions in the Americas due to both internal and market challenges, which are now being addressed.
The company's balance sheet strengthened with financial leverage reduced to 1.5x, below its desired range, thanks to solid cash generation and a successful equity raising. ALS also invested heavily in four new hub laboratories across Minerals and Environmental, underpinning future growth. The company continues to deliver industry-leading safety outcomes.
What did ALS management say?
CEO and Managing Director Malcolm Deane, said:
ALS has delivered robust financial performance in FY26, reflecting the resilience of our diversified portfolio, disciplined operational execution and the commitment of our people in continuing to deliver high quality service and outcomes for our customers. Throughout the year, we remained focused on executing our refreshed strategy and advancing the priorities outlined in our value creation framework. This included disciplined capital allocation, targeted investment in growth opportunities and ongoing portfolio optimisation to strengthen returns and position the business for long-term sustainable growth, maximising shareholder returns.
What's next for ALS?
ALS expects to continue mid to high single-digit organic revenue growth in FY27, with further margin expansion planned. Its new Sydney and Lima laboratories are set to be commissioned in H2 FY27, boosting capacity in key areas. The group also plans to deliver tangible benefits from its Lab of the Future initiative, investing in automation, digital infrastructure and AI.
Management is staying alert to global macro and supply chain risks, but a strong balance sheet positions ALS to pursue organic and inorganic growth. Minerals and Industrial Materials divisions are tipped for double-digit and high single-digit growth, respectively, while Life Sciences aims for improved mid-single-digit organic growth.
ALS share price snapshot
Over the past 12 months, ALS shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
