Highlights

• Revenue increased 13.5% to NZ$1.46 billion, while NPAT climbed 17.3% to NZ$94.0 million.
• Express Package & Business Mail delivered strong growth, supported by market-share gains, pricing and the VTFE acquisition.
• Australia is emerging as a major growth opportunity, with further capacity expansion and targeted M&A planned.

Strong FY26 Financial Performance

Freightways Group Limited (ASX: FRW) reported its FY26 results on 17 August 2026, revealing a resilient performance despite challenging economic conditions. For the 12 months ended 30 June 2026, operating revenue rose 13.5% to NZ$1.46 billion, while EBITA increased 14.6% to NZ$181.6 million. Net profit after tax advanced 17.3% to NZ$94.0 million, lifting basic earnings per share by 17.2% to 52.4 cents. The group also improved its EBITA margin to 12.4%, compared with 12.3% in FY25. Cash generated from operations rose 14.9% to NZ$279.4 million, highlighting the strength of operating cash generation.

Express Package Division Leads Growth

Express Package & Business Mail was a key contributor, with operating revenue climbing 16.4% to NZ$1.24 billion and EBITA rising 17.3% to NZ$168.1 million. Growth was supported by higher volumes from existing customers, market-share gains, pricing initiatives and five months of contribution from VTFE. New Zealand network volumes increased 5.1%, with 3.6% attributed to net market-share gains. Meanwhile, Allied Express in Australia recorded a notable 20% increase in network items, including an 18% rise in same-customer volumes.

Australia Provides a Major Growth Opportunity

Management sees Australia as an increasingly important growth engine. The Australian express market is estimated at around AU$13 billion annually, with considerable fragmentation outside the three major players. Freightways has assessed more than 70 potential targets over the past three to four years and intends to pursue disciplined organic and inorganic expansion.

Outlook Remains Focused on Recovery

Freightways expects customer volumes to remain soft until fuel prices decline sustainably. Nevertheless, investments in Christchurch and Palmerston North, alongside continued margin improvement and targeted Australian M&A, are expected to support longer-term growth. The company also declared a 24-cent-per-share final dividend, taking the FY26 dividend to 45 cents per share. The record date is 11 September 2026, with payment scheduled for 1 October 2026.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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