The Freightways Ltd (ASX: FRW) share price is under the spotlight after the company delivered strong FY26 results, with revenue up 13.5% to NZ$1.46 billion and net profit after tax rising 17.3% to NZ$94 million.
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What did Freightways report?
- Revenue increased 13.5% to NZ$1,463.6 million
- Net profit after tax (NPAT) up 17.3% to NZ$94 million
- EBITA grew 14.6% to NZ$181.6 million; EBITA margin improved to 12.4%
- Basic earnings per share rose 17.2% to 52.4 cents
- Final dividend of 24 cents per share (full-year dividend up 12.5% to 45 cents)
- Cash generated from operations up 14.9% to NZ$279.4 million
What else do investors need to know?
The company managed to grow despite a challenging economic backdrop, including volatile fuel prices and the impact of the Middle East conflict on demand late in the year. Freightways responded quickly by adjusting its fuel recovery approach and keeping a focus on margin improvement.
Growth in the Australian division was a highlight, now contributing 38% of group EBITA, with Allied Express and the addition of VTFE driving performance. The acquisition of VTFE in February added five months of earnings and supported an uplift in scale and capability in Australia.
In its information management and waste renewal division, revenues held steady with expansion in medical and e-waste services, offsetting some softness in digitalisation demand. Shred-X showed signs of ongoing margin recovery after its business reset.
What did Freightways management say?
Mark Troughear, Chief Executive Officer, said:
Our businesses have proven to be resilient over the past three years of soft economic activity. Same-customer activity was recovering and positive before the war, but has turned negative since April.
What's next for Freightways?
Looking ahead, Freightways expects volumes to remain subdued until fuel prices ease and broader economic conditions improve, meaning recovery may take longer than previously anticipated. The business is investing in extra capacity, with Christchurch and Palmerston North facility expansions due in 2027 to support long-term growth in New Zealand.
In Australia, management sees medium-term potential for the market to overtake NZ in terms of revenue and earnings. A disciplined approach to acquisitions remains, targeting opportunities that complement its core express network and add value for shareholders.
Freightways share price snapshot
Over the past 12 months, Freightways shares have risen 11%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
