Lindsay Australia Posts 5.6% Revenue Growth Despite 11.7% EBITDA Decline

Navigating a Tough Market

Lindsay Australia Limited has delivered a resilient financial performance for the year ended June 30, 2025, despite facing a challenging environment marked by margin compression and rising input costs. The company’s revenue climbed 5.6% to $849.8 million, bolstered by organic growth in its Transport and Rural divisions alongside recent acquisitions that extended its reach into new regions.

However, underlying EBITDA fell 11.7% to $81.4 million, reflecting the impact of intense competition, elevated industry capacity, and softer consumer demand. Net profit before tax also declined by 27.9% to $31.9 million, underscoring the pressure on profitability despite top-line gains.

Strategic Expansion and Integration

During FY25, Lindsay Australia strategically expanded its network through acquisitions, including GJ Freight in South West Western Australia and Nagambie Equine and Rural, with the SRT Logistics acquisition in Tasmania completed shortly after year-end. These moves have broadened the company’s geographic footprint and diversified its service offerings, particularly in refrigerated transport and rural supply chains.

The Transport division grew revenue by 5.9% excluding fuel levies, supported by organic growth from retail and high-value dairy and protein sectors, as well as contributions from GJ Freight. Meanwhile, the Rural division posted an 8.7% revenue increase, driven by market share gains and integrated offerings that combine transport and packaging solutions.

Investing in Infrastructure and Efficiency

Lindsay invested $50.8 million in capital expenditures, focusing on fleet upgrades, infrastructure projects such as the new Perth facility expected to open in October 2025, and strategic initiatives aimed at improving operational efficiency. The company also secured a new four-year enterprise agreement covering over 1,800 employees, providing workforce stability amid ongoing transformation efforts.

Net leverage stood at 1.53 times, within the company’s target range, reflecting disciplined capital management even after the recent acquisitions. The final dividend was maintained at 1.5 cents per share, fully franked, resulting in a full-year payout ratio of 54% on an underlying basis.

Looking Ahead, Synergies and Margin Recovery

Looking forward to FY26, Lindsay Australia is focused on realising synergies from recent acquisitions, targeting $1 million in benefits from SRT Logistics alone. The company aims to enhance asset utilisation, improve pricing discipline, and balance loads to support margin recovery. Completion of infrastructure projects in Perth and Adelaide is expected to boost scale and network efficiency.

CEO Clay McDonald highlighted the company’s strategic positioning to benefit from market rationalisation as pricing pressures ease, emphasizing the integrated operating model and geographic expansion as key strengths. While challenges remain, Lindsay Australia’s disciplined approach to capital allocation and operational transformation positions it well to navigate the current headwinds and capture future growth opportunities.