Freightways Group lifts profit and dividend in HY26 results

The Freightways Group Ltd (ASX: FRW) share price is in focus today after the company delivered robust HY26 results, with revenue up 8.5% to $718.2 million and NPAT climbing 17.2% to $52.5 million.

What did Freightways Group report?

• Operating revenue rose 8.5% to $718.2 million
• EBITA increased 12.2% to $96.5 million, with margin improving to 13.4%
• Net profit after tax (NPAT) jumped 17.2% to $52.5 million
• Basic earnings per share lifted 17.2% to 29.3 cents
• Interim dividend up 10.5% to 21 cents per share
• Net debt reduced 6.7% to $587.1 million

What else do investors need to know?

Freightways’ Express Package and Business Mail division showed strong revenue and margin growth, with same-customer volume increases, market share gains, and successful pricing moves. The Australian Allied Express business enjoyed solid volume momentum, boosted by successful Black Friday trading and new customer wins.

The Information Management and Waste Renewal division remained steady, with revenue broadly flat but modest EBITA growth. One-off restructuring costs affected HY26, but these are not expected to repeat, and waste renewal segments like Secure Destruction and Medical Waste saw solid growth.

The recent acquisition of VT Freight Express for A$71 million post-period end adds a complementary B2B express service in Australia, expected to be 6% earnings-per-share accretive in the first year and building out Freightways’ Australian presence.

What’s next for Freightways Group?

Freightways expects continued improvement in same-customer volumes, particularly in New Zealand, as economic conditions gradually recover. The focus remains on rebuilding margins, boosting operational efficiency, and delivering better value for shareholders through disciplined growth.

The group also plans to pursue bolt-on acquisitions to strengthen its niche express offering in Australia, with the recent VT Freight Express acquisition laying a foundation for further growth, while sticking close to its capital management policy.

Freightways Group share price snapshot

Over the past 12 months, Freightways Group shares have risen 27% outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Freightways Group lifts profit and dividend in HY26 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.