LGI Ltd (ASX:LGI) is a clean-energy company that captures methane from landfills and converts it into electricity and carbon credits, turning a potent greenhouse gas into revenue. It earns money from selling power and from generating Australian Carbon Credit Units, giving it a dual, environmentally driven income stream that is relatively insulated from broader economic cycles.

Strong FY26 profit growth and a record Margin have put this under-the-radar clean-energy minnow on watch lists into September.

Latest Development

For FY26, LGI reported Revenue up 17% and an EBITDA margin reaching a record 55%, as it boosted profits and expanded its portfolio of landfill clean-energy projects. The company continued to add generation capacity and biogas projects, growing both its power output and its carbon-credit generation.

The combination of double-digit revenue growth and an expanding, high margin reflects the Operating Leverage in adding new sites to an established, capital-light infrastructure base.

What Could Drive the Shares Next?

Catalysts include the development of new landfill and biogas projects, growth in generation capacity and carbon-credit output, the price of Australian Carbon Credit Units, and continued margin strength. Expansion into new sites or adjacent clean-energy opportunities would support growth.

Evidence that LGI can keep adding high-margin projects would be the clearest positive driver.

Risks Investors Should Watch

LGI's Earnings are influenced by the price of carbon credits and electricity, both of which can be volatile, and by policy settings around carbon markets. Developing new sites carries execution and timing risk.

As a smaller company, it is sensitive to project delays and to changes in the regulatory and carbon-pricing environment.

Investor Takeaway

LGI grew FY26 revenue 17% and lifted its EBITDA margin to a record 55% while expanding its landfill clean-energy portfolio. Whether it warrants a September watch depends on adding new high-margin projects and the carbon-credit price. Project growth, generation and carbon-credit revenue, and margins are the things to watch.