Key Highlights

  • Revenue increased 1.5% to $290.6 million despite subdued economic conditions.
  • Normalised Earnings before tax rose $11.6 million year on year to $1.6 million.
  • Net profit after tax returned to positive territory at $0.3 million, compared with a loss in the prior year.
  • Net Debt declined 38% to $10.4 million, while free Cash Flow increased $4.2 million to $6.3 million.

MOVE Logistics (ASX:MOV) has returned to positive normalised earnings in FY26, completing a financial recovery milestone after a period of restructuring and difficult market conditions. For the 12 months ended 30 June 2026, Revenue increased 1.5% to $290.6 million, while normalised earnings before tax rose by $11.6 million to $1.6 million. The company also returned to a net profit after tax of $0.3 million attributable to owners, compared with a loss in the previous year.

Revenue and Divisional Performance

MOVE’s revenue growth was achieved against what management described as a subdued economic environment. The company reported improved earnings performance across all four Business divisions, although the extent of the recovery varied between operations.

Freight & Fuel recorded a turnaround, with higher revenue translating into positive earnings. The Specialist division also improved year on year as large projects commenced during the second half of FY26. International delivered a material earnings increase, supported by Oceans producing the expected results.

Warehousing remained the main area of underperformance. The division continued to face excess capacity, weak customer Demand and pricing pressure from competitors. Management indicated that structural cost reductions have already been implemented in the division, with the next priority being revenue growth to restore profitability.

Earnings and Margin Improvement

Normalised earnings before tax increased to $1.6 million from a negative $10.0 million in FY25. The $11.6 million improvement was attributed to profitable contributions from three of the four business divisions, structural cost savings and increased operating leverage.

Gross margin dollars and adjusted gross margin percentage also continued to improve. The company attributed the movement to pricing discipline, productivity improvements and operating leverage. These improvements occurred despite cost Inflation during the second half of FY26.

The $27 million cost-focused transformation programme was largely completed in FY25, with structural savings now embedded in the business. Total expenses in FY26 remained broadly comparable with the prior year despite inflationary pressures and increased activity.

Cash Flow and Debt Reduction

Cash generation improved during the year. Operating Cash Flow increased $7.3 million year on year to $32.6 million, while free cash flow rose $4.2 million to $6.3 million.

The improvement in cash flow was accompanied by a significant reduction in debt. Net debt fell 38% to $10.4 million, while leverage, measured as net debt to EBITDA, improved to 1.02 times from negative 7.9 times in FY25. Return on invested Capital increased to 10.6%, representing a material improvement compared with prior periods.

MOVE also has additional funding arrangements in place. Its ANZ banking Facility has been extended to August 2027, while a new BNZ invoice finance facility is scheduled to commence in November 2026. The company said the BNZ facility is expected to reduce ongoing finance costs and assist with working-capital management.

From Restructuring to Growth

FY26 represents the completion of the Reset phase of MOVE’s New Horizons roadmap. The company has spent the past two years reducing structural costs and adjusting its operations to prevailing market conditions.

Management’s emphasis is now shifting from structural transformation towards revenue growth and earnings development. The company intends to focus on customer relationships, commercial execution, disciplined Investment and further operational improvements.

The results indicate that the cost-focused transformation has contributed to a substantial improvement in earnings, although the absolute level of profitability remains relatively modest. The continued underperformance of Warehousing is also an area that management will need to address as it seeks broader earnings improvement.

Outlook

MOVE expects economic conditions to show signs of improvement, although management remains cautious about the pace and timing of any recovery. The company enters the new financial year with a lower cost base, reduced debt and a business structure that management says is better aligned with current market conditions.

The transition from restructuring to value creation will place greater emphasis on top-line growth and sustainable earnings. Freight & Fuel, Specialist and International have already moved towards improved profitability, while Warehousing remains a key operational challenge. The company’s ability to convert improved market conditions and customer activity into higher earnings will therefore remain an important feature of its financial performance.

Conclusion

MOVE Logistics delivered a significant year-on-year improvement in FY26, with revenue increasing 1.5%, normalised earnings returning to positive territory and net profit after tax reaching $0.3 million. Cash generation also improved, while a 38% reduction in net debt materially changed the company’s balance-sheet position. However, profitability remains relatively modest and Warehousing continues to operate below expectations amid weak demand, excess capacity and pricing pressure. With the Reset phase complete, MOVE is now focused on revenue growth, commercial execution and operational improvement as it seeks to build on the financial progress recorded during FY26.