LGI Limited (ASX:LGI): FY26 Earnings, Renewable Electricity and Carbon Abatement Operations

Aditi Sarkar

23 October 2026 12:29 AM AEDT

LGI Limited (ASX:LGI): FY26 Earnings, Renewable Electricity and Carbon Abatement Operations

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Highlights

LGI Limited (ASX:LGI) reported FY26 statutory revenue and other income of AUD 43.31 million, up 17.7%.
Underlying EBITDA rose 25.5% to AUD 21.80 million, while net profit reached AUD 8.77 million.
Renewable electricity generation increased 29.1% to 140.84 gigawatt hours.
The company created 584,191 Australian Carbon Credit Units in FY26, an 18.4% increase.

LGI Limited (ASX:LGI) recovers landfill biogas and converts it into renewable electricity and environmental certificates through projects in eastern Australia. Its FY26 accounts, released in August 2026, showed higher electricity output and carbon-credit creation alongside increased earnings, although operating cash flow declined. Following the completed trading session on 23 October 2026, LGI Limited (ASX:LGI) shares closed at AUD 2.36, down 1.67% for the day.

Company Business

LGI Limited (ASX:LGI) designs, operates and manages landfill gas collection systems. Captured gas may be combusted in renewable electricity generators or destroyed through flaring to reduce methane emissions. The company earns income from electricity, large-scale generation certificates (LGCs), Australian Carbon Credit Units (ACCUs), infrastructure construction and site-management services. Project output depends on the quantity and quality of gas captured, generator availability and environmental certificate eligibility.

At 30 June 2026, the group had 37 contracted projects across Queensland, New South Wales and the Australian Capital Territory. Nine generated renewable power, while 25 were capable of carbon abatement through gas flaring. Some facilities participate in more than one business activity, so project counts and segment biogas volumes should not be treated as separate, additive totals.

Recent Development

During FY26, LGI Limited (ASX:LGI) increased recovered biogas volume to 170.2 million cubic metres, compared with 127.7 million cubic metres in FY25. Electricity generation rose to 140,841 megawatt hours from 109,119 megawatt hours, and generation-fleet availability was 97%, above the company’s 95% target. Electricity production included a full year of operation at the Eastern Creek power station in Sydney.

The company completed works at Warwick, Jandowae, Mackay, Lithgow, Taree and Tuncurry, together with additional work at Eastern Creek and Belrose. These activities contributed to eight additional carbon-abatement sites during FY26, taking the total to 25. ACCUs created increased from 493,446 to 584,191. Separately, the company reported an October 2025 equity capital raising of AUD 56 million and expanded its capacity-under-management objective from 56 megawatts to more than 80 megawatts.

Financial Performance and Sector Context

For the year ended 30 June 2026, LGI Limited (ASX:LGI) recorded statutory revenue and other income excluding interest of AUD 43.31 million, up from AUD 36.79 million. Net revenue, a company-defined non-IFRS measure after deducting ACCUs transferred to landfill owners as in-kind royalties, increased 17.4% to AUD 39.84 million. Underlying EBITDA rose 25.5% to AUD 21.80 million, while statutory net profit after tax increased 35.5% to AUD 8.77 million.

Renewable energy segment revenue was AUD 19.08 million, an 11.8% rise, supported by electricity generation and certificate income. Carbon-abatement revenue increased 28.3% to AUD 22.19 million as ACCU production expanded. Infrastructure construction and site-management revenue declined 14.8% to AUD 2.02 million, reflecting a greater focus on projects where the company held gas rights.

Operating cash flow was AUD 8.45 million, down 31.4% from AUD 12.32 million. Management attributed lower cash conversion in part to higher environmental-certificate holdings; the balance of these certificates reached AUD 22.59 million at year-end. Investing cash outflow increased to AUD 25.01 million, primarily reflecting power-station and gas-collection infrastructure expenditure. Cash and cash equivalents stood at AUD 8.11 million, while the bank debt facility was undrawn at 30 June 2026.

Risks to Consider

LGI Limited (ASX:LGI) remains exposed to landfill-gas recovery rates, generator performance, project-construction timing and electricity revenue conditions. ACCU and LGC prices, eligibility rules and regulatory requirements affect environmental certificate income and the timing of conversion into cash. A higher certificate inventory can increase reported income without a matching immediate cash receipt. Capital spending and delivery of additional generation capacity also require continued execution and financial management.

What to Watch Next

Subsequent disclosures will indicate progress on capacity additions at Canberra, Belrose and Nowra and provide updated schedules for bringing projects into operation. The annual general meeting scheduled for November 2026 and the next interim reporting period may also clarify project investment, gas flows, electricity output, ACCU creation and certificate sales. For LGI Limited (ASX:LGI), operating cash conversion and capital expenditure remain useful measures alongside EBITDA and statutory profit.

Key Insights

FY26 combined increased landfill-gas collection, renewable electricity generation and environmental certificate production with higher statutory earnings. However, operating cash flow declined while investment spending increased. LGI Limited (ASX:LGI) enters its next reporting period with projects under development and a year-end undrawn bank facility; future disclosures will show the financial effect of additional operating capacity and certificate sales.

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