Highlights

  • Lindsay Australia (ASX:LAU) shares fell 3.27% today to $0.74 but remain up 8.82% over the past month.
  • FY26 Group Revenue exceeded $1 billion for the first time, rising 26.2% to $1.073 billion.
  • Underlying EBIT increased 37.7% to $60.4 million, while reported NPAT rose 31.5% to $22.9 million.
  • The company secured a five-year Primary Connect contract expected to generate $30 million to $36 million in annual revenue from North Queensland.

Lindsay Australia (ASX:LAU) shares dipped 3.27% to $0.74 on 2 September, but the stock remains up 8.82% over the past month following a standout FY26 result that saw the company break through $1 billion in annual revenue for the first time. Lindsay Australia Limited (ASX:LAU) is a diversified transport and logistics Business with operations spanning Transport, Rural and W.B. Hunter, and its record financial results have provided a solid foundation for the stock's gains over the past four weeks, even as today's session saw some profit-taking.

Record Revenue Breaks Through $1 Billion

Lindsay Australia delivered record financial results for FY26, with Group revenue exceeding $1 billion for the first time. Revenue increased 26.2% to $1.073 billion for the year ended 30 June 2026, supported by the first full-year contribution from SRT Logistics and organic growth across the Transport and Rural businesses. Underlying EBITDA increased 25.6% to $127.8 million, underlying EBIT rose 37.7% to $60.4 million, and reported NPAT increased 31.5% to $22.9 million, with underlying EPS up 10.0% to 7.6 cents.

Transport Drives Group Earnings Growth

Transport remained the largest contributor to Group revenue, with sales increasing 32.9% to $762.9 million, reflecting a full twelve months of SRT Logistics within the Group. Transport underlying EBIT increased 25.9% to $77.4 million. Tasmania now accounts for 19% of Transport revenue, and the business has expanded into Southwest Western Australia with a new purpose-built Facility in Perth. High Productivity Vehicles now account for more than 13% of road kilometres travelled, with 25 additional combinations added during the year, and Lindsay has confirmed that its SRT Logistics EPS accretion targets have been delivered.

Rural and W.B. Hunter Deliver Higher Earnings

The Rural division recorded revenue growth of 15.3% to $190.8 million, with underlying EBIT increasing 22.8% to $12.2 million as the division's EBIT Margin improved from 6.0% to 6.4%. W.B. Hunter revenue increased 7.9% to $118.9 million, with underlying EBIT up 11.3% to $3.2 million, supported by pet and produce, fertiliser and carton sales, and full integration of the Nagambie and Seymour stores.

Primary Connect Contract Opens Secondary Freight Market

Lindsay has secured a five-year transport services contract through Primary Connect covering approximately 40 Woolworths stores between Mackay and Cairns in North Queensland, expected to generate annual revenue of approximately $30 million to $36 million once fully implemented. Operations will begin progressively from October 2026, with full implementation expected by July 2027, and the project includes approximately $20 million of dedicated Capital Investment and two new greenfield sites in Townsville and Cairns. Lindsay expects the contract to generate returns above its internal 15% ROIC hurdle, marking the company's first scaled position in the mainland secondary freight market.

Capital Investment, Leverage and Dividend

Lindsay invested $40.5 million in capital during FY26, within its target range, with FY27 capital investment expected to rise to approximately $57 million including the Primary Connect spend. Net leverage finished FY26 at 1.92 times, down from 2.23 times at the half-year and within the company's target range of 1.0 to 2.0 times. Return on invested capital was 13.9%, and the Board declared a fully franked final Dividend of 1.7 cents per share, taking the FY26 total dividend to 3.8 cents per share, unchanged from FY25.

Conclusion

Lindsay Australia's share price has climbed 8.82% over the past month, supported by a record FY26 result that saw the company surpass $1 billion in annual revenue and deliver a 37.7% jump in underlying EBIT. Transport's full-year contribution from SRT Logistics was the standout driver, while the new Primary Connect contract opens a meaningful new secondary freight revenue stream from FY27 onward. With leverage improving from the half-year and return on invested capital holding above 13%, the fundamentals behind the recent share price strength look solid. Today's modest pullback aside, Lindsay Australia's combination of record scale, expanding margins and a clear growth contract in the pipeline makes it a name worth considering for investors seeking exposure to Australian transport and logistics — provided execution on the Primary Connect rollout and broader freight Demand hold up through FY27.