Freightways Group Limited Analysis

Overview

Freightways is an operator of express logistics businesses in the express package, business mail, information management and waste renewal industries in both New Zealand and Australia. Across its brands Freightways handles over 100 million items every year utilising its core capabilities of ‘picking up, processing and delivering’ efficiently and at scale.

The company’s origins go back to 1964 in New Zealand, with the incorporation of New Zealand Couriers (an express package business), and 2007 in Australia, with the acquisition of Databank (an information management business). It has achieved growth on both sides of the Tasman both organically and through acquisition opportunities.

Freightways’ securities were listed in New Zealand in 2003.

Performance

The following information was extracted from Freightways Group Limited's half year results, released 16 February 2026:

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.