• Consistent performance across all businesses
• Slight lift in Q2 volumes in NZ for Express and Temperature Controlled transport
• Acquisition of VTFE adds a complementary B2B express service in Australia

Freightways Group reported a strong half-year performance for HY26, with consistent results across all its businesses. The company saw a slight lift in Q2 volumes in New Zealand for its Express and Temperature Controlled transport services as economic conditions improved, though there was higher demand for economy over premium services. The acquisition of VTFE, a complementary B2B express service in Australia, is expected to provide a platform for organic and inorganic growth in the Australian market. Financially, the company reported revenue growth of 8.5% to $718.2 million, EBITA growth of 12.2% to $96.5 million, and NPAT growth of 17.2% to $52.5 million. EBITA margins improved to 13.4% from 13.0% in the prior period. The company's focus on margin re-building is gaining traction, with most businesses showing improvement, particularly in the Express Package division. The company's balance sheet remains strong, with net debt reducing and cash flow generation supporting debt reduction. Gearing is expected to be in the mid-range of the company's policy by the end of FY26. An interim dividend of 21 cents per share, fully imputed in New Zealand and 46% franked in Australia, was declared, representing a 10.5% increase over the prior period.Looking ahead, the company expects a steady improvement in same-customer volumes in the second half of FY26 in New Zealand as the economic recovery continues. The focus will remain on leveraging service quality to retain customers and attract new business, as well as a proactive approach to complementary M&A opportunities in Australia to grow the express network.

The company expects a steady improvement in same-customer volumes in the second half of FY26 in New Zealand as the economic recovery continues. The focus will remain on leveraging service quality to retain customers and attract new business, as well as a proactive approach to complementary M&A opportunities in Australia to grow the express network.