This $11 billion ASX industrials stock is moving higher on Monday after the company delivered a record FY26 result.
During afternoon trade, shares in ALS Ltd (ASX: ALQ) climbed 3% to $22.85.
The latest gain adds to what has already been a strong run for shareholders. ALS shares are now up roughly 28% over the past 12 months, comfortably outperforming the benchmark S&P/ASX 200 Index (ASX: XJO), which has risen only around 4% over the same period.
So, what impressed investors?
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A big jump in profits
The ASX industrials stock delivered strong growth across several key financial metrics.
Revenue climbed 10.7% year on year to a record $3.32 billion. Even more impressive was profitability.
Underlying net profit after tax (NPAT) surged 25.8% to $381.2 million. Underlying EBIT jumped 19.3% to $599 million, while margins improved sharply by 129 basis points to 18%. Statutory NPAT also rose strongly, lifting 24.4% to $318.7 million.
Cash generation remained a major highlight too. ALS produced free cash flow of $674.1 million and achieved EBITDA cash conversion of 92%, reinforcing the quality of earnings behind the result.
Shareholders were also rewarded with a final dividend of 23.1 cents per share, partially franked. That brought full-year dividends to 42.5 cents per share.
Commodities keeps firing
One of the standout divisions of the ASX industrials stock was Commodities. Revenue in the segment surged 18.8%, helped by stronger mineral exploration activity globally. That is not surprising given the ongoing demand for critical minerals, copper, gold, and broader resources exploration activity.
Life Sciences also performed well, with revenue rising 6%, driven by strength in the food business.
Environmental was softer, particularly across the Americas, where internal operational issues and weaker market conditions weighed on growth. Management said those issues are now being addressed.
What did 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 next for ALS?
Management of the ASX industrials stock remains optimistic heading into FY27. ALS expects mid to high-single-digit organic revenue growth alongside further margin expansion.
New laboratories in Sydney and Lima are scheduled to come online during the second half of FY27, expanding capacity in key growth areas. The company is also leaning heavily into automation, digital infrastructure, and artificial intelligence through its "Lab of the Future" initiative.
While management acknowledged ongoing macroeconomic and supply chain risks, ALS appears well-positioned, with a strong balance sheet and growing exposure to long-term demand for mining, environmental, and industrial testing.
