Half Year Results to 31 December 2025 and Interim Dividend

Building resilience and momentum Freightways delivered a strong first half performance in FY26. Economic conditions in New Zealand showed modest improvement through the period, while trading conditions in Australia remained stable. The Group maintained its focus on service quality, pricing discipline and operational efficiency, supporting continued margin recovery. Business performance Group revenue increased by 8.5% to $718.2 million for the half year. Earnings before interest, tax and amortisation (EBITA) increased by 12.2% to $96.5 million, with EBITA margin improving to 13.4% from 13.0% in the prior corresponding period. Net profit after tax (NPAT) increased by 17.2% to $52.5 million, and basic earnings per share increased to 29.3 cents per share. Cash generation remained strong and supported further balance sheet strengthening. Net debt reduced during the period, lowering interest costs and supporting the larger growth in NPAT. Divisional performance The Express Package and Business Mail division delivered revenue growth, EBITA growth and margin improvement during the half year. Performance was supported by same-customer volume growth, net market share gains and pricing actions implemented at the start of the financial year. Margin improvement was achieved despite incremental IT costs on development of a new billing platform (Project Evolve) incurred during the period. In New Zealand, demand was focused more heavily on our economy services at the expense of overnight express services. In Australia, Allied Express delivered strong volume growth and improved EBITA performance, reflecting improved utilisation, share-of-wallet gains and new business wins. The Information Management and Waste Renewal division delivered a mixed performance. Revenue was broadly flat for the half year, while EBITA grew modestly, reflecting lower digitisation activity and the exit of unprofitable Product Destruction revenue streams. There was A$1.6 million of net one-off costs in the half year that are not expected to be repeated. Pricing initiatives and operational improvements contributed to margin improvement across several parts of the division, with Secure Destruction and Medical Waste both delivering volume growth. Dividends and capital management An interim dividend of 21 cents per share has been declared for the half year, representing an increase of 10.5% on the prior corresponding period. The dividend is fully imputed in New Zealand and c. 46% franked in Australia. The Group’s balance sheet remains well positioned, providing capacity to fund investment, pursue disciplined and complementary acquisitions, and remain within capital management policy settings. This is the case even after the acquisition of VTFE in the Australian state of Victoria, which was finalised after half year. Strategy, systems and outlook Margin improvement remains a priority. Cost inflation remains moderate and the Group’s cost base has stabilised, particularly with respect to labour. The implementation of a new billing platform for the New Zealand Express Package businesses continues and is expected to support improved billing capability, pricing discipline and longer-term margin outcomes. We expect a steady improvement in same-customer volumes in the second half of FY26, particularly in New Zealand, driven by a level of economic recovery. Excluding one-off air network transition costs, margin improvement is expected to continue. The Group remains focused on retaining customers through service quality, attracting new business and pursuing disciplined mergers and acquisitions that are directly complementary to growing the Australian express network. We would like to thank all of our teams, across both New Zealand and Australia, for their efforts in moving our customers and shareholders to a better place.