CTI Logistics Limited (ASX:CLX) has a Dividend Reinvestment Plan (DRP) operating for its latest payout. The Perth-based transport and logistics group lifted its fully franked final dividend to 8 cents per share after a record FY26, and the DRP is offered at a 2.5% discount to the volume-weighted average Market Price used in the calculation.

Latest developments

CTI reported Revenue up 9.74% to $357.1 million for FY26, and net profit attributable to members up 68.92% to $24.0 million. Diluted Earnings per Share rose 68% to 30.3 cents. Net tangible assets per share increased to 148.84 cents from 130.25 cents. The result followed a trading update ahead of the result in which CTI flagged profit before tax about 75% higher than the prior year.

The company described FY26 as a record year driven by strong transport volumes and continued growth in logistics. CTI has also entered into a binding agreement to buy a property at 125-129 Sheffield Road, Welshpool, in Western Australia, for $24.1 million, with settlement scheduled for November 2026. It plans to relocate its interstate transport operation to the site after redevelopment, which the company says will remove the need for two existing leases.

Key numbers

CTI declared two fully franked dividends for FY26, a 6 cent interim and an 8 cent final, totalling 14 cents per share. The final is up from 5.5 cents a year earlier, and the interim rose from 5 cents to 6 cents.

Franking credits attached to the dividends reflect tax already paid by the company, and their value depends on each shareholder's tax position.

About the company

CTI Logistics is a national transport and logistics provider with operations in Western Australia, South Australia, New South Wales, Victoria and Queensland. It reports transport and logistics segments, and it also provides information management and security services.

A distinctive feature is its owner-occupied property portfolio, which supports its operating businesses. The company's chairman is David Watson. Its financial year runs to 30 June.

How the DRP works

CTI's DRP applies to the FY26 final dividend. According to its Appendix 3A.1 dividend notices lodged with the ASX, the DRP price is based on the volume-weighted average market price of all shares sold on the ASX over the five Business days up to and including the record date, less a 2.5% discount. The election period for the final dividend has closed.

DRP shares are to be newly issued and rank equally with existing shares. CTI also runs a Bonus share plan, and its preliminary final report states that both plans are in operation. Shareholders who make no election receive cash, and the board may exclude holders in places where offering the plan would be unlawful or impracticable. CTI confirmed the allocation price, calculated under this methodology, in an updated dividend notice.

Why it matters for income investors

CTI's dividend has grown alongside earnings. The FY26 total of 14 cents per share compares with 10.5 cents in FY25, and both FY26 dividends were fully franked.

Under the DRP, participants receive shares at a 2.5% discount to the volume-weighted average price used in the calculation. Because the shares are newly issued, participants' holdings increase, while holders who take cash are diluted slightly.

What comes next

CTI's next milestones include the scheduled settlement of the Welshpool property and its annual general meeting. Its interim results for the first half of FY27 are expected in due course. Management has pointed to a positive medium-term outlook supported by Australia's population growth, public and private infrastructure spending, minerals and energy, regional development and online spending penetration.

Any future dividend amount, franking level or DRP terms will be set by the board and disclosed to the ASX.

Risks and context

Past dividends are not a forecast. Part of the FY26 profit rise came from higher transport volumes and project work, which may not continue at the same level. Transport earnings can be affected by economic slowdowns, fuel and labour costs, and competition from larger national operators.

The $24.1 million property purchase adds to Capital commitments and is to be funded from existing Debt facilities. New DRP shares add to the share count. Reinvested dividends are still assessable income, including franking credits, and each DRP parcel sets a new cost base for Capital Gains Tax purposes.

Conclusion

CTI Logistics (ASX:CLX) has a DRP operating at a 2.5% discount for its 8 cent fully franked final dividend. Record revenue and profit and a higher dividend feature in the FY26 result, while the cyclical nature of transport activity and the capital commitment attached to the Welshpool property purchase are relevant context.

Key Insights

CTI Logistics (ASX:CLX) reported record FY26 revenue and a sharp rise in net profit, and lifted its fully franked dividends to a total of 14 cents per share. Its DRP and bonus share plan are in operation, with new shares issued at a 2.5% discount to a five-day volume-weighted average price ending on the record date.

The company has also committed to a $24.1 million property purchase in Welshpool, subject to settlement, to consolidate its interstate transport operation. Future dividends and DRP terms remain at the board's discretion, and transport earnings remain exposed to economic conditions, costs and competition.