ALS (ALQ) H2 2026 earnings summary

Executive summary

• Achieved FY 2027 strategic targets 12 months early, with FY26 revenue up 10.7% to AUD 3.32 billion and underlying NPAT up 25.8% to AUD 381.2 million, driven by strong organic growth and disciplined execution in Commodities and Life Sciences.

• Maintained robust financial position, supporting increased dividends and ongoing investment in growth initiatives.

• Demonstrated resilience amid geopolitical uncertainty, leveraging a diversified operating model and disciplined capital allocation.

• Health and safety performance reached record lows in injury frequency, reinforcing operational excellence.

Financial highlights

• Underlying EBIT rose 19.3% to AUD 599 million, with margin up 129 bps to 18.0%.

• Free cash flow before CapEx rose to AUD 674 million, with EBITDA cash conversion at 92%.

• Underlying ROCE improved by 309 bps to 21.5%.

• Statutory NPAT increased 24.4% to AUD 318.7 million; underlying EPS up 21.2% to AUD 0.757.

• Dividend payout ratio at 57% of underlying NPAT, with DPS up 10.1% to AUD 0.425.

Outlook and guidance

• FY27 targets mid-to-high single-digit organic revenue growth and continued margin expansion.

• Commodities (Minerals) expected to deliver 13%-15% organic revenue growth in FY27, with H1 at 15%-17%.

• Life Sciences targeting mid-single-digit organic revenue growth, with margin improvement of 30-50 bps.

• FX and Middle East supply chain disruptions flagged as risks, with estimated EBIT impact of AUD 5-10 million.

• CapEx for FY27 expected at AUD 170 million base plus AUD 70 million for hub labs.