ALS Limited (ASX: ALQ): FY26 Profit Growth and FY27 Testing Outlook

Aditi Sarkar

08 October 2026 11:12 PM AEDT

ALS Limited (ASX: ALQ): FY26 Profit Growth and FY27 Testing Outlook

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Highlights

FY26 Revenue reached A$3,320.1 million, while underlying EBIT rose to A$599.0 million.
Underlying NPAT was A$381.2 million and statutory NPAT was A$318.7 million.
Commodities benefited from higher mineral exploration activity, while Life Sciences delivered mixed growth across its businesses.
Financial Leverage ended FY26 at 1.5 times, below the company’s targeted range of 1.7 to 2.3 times.
FY27 guidance points to continued organic growth in Minerals and improved growth across Life Sciences.

ALS Limited (ASX: ALQ) is a global testing company providing comprehensive testing solutions to clients across a wide range of industries. Its FY26 results, released on 18 May 2026 for the year ended 31 March 2026, showed higher revenue, Earnings and cash generation, alongside reduced leverage. The result also highlighted contrasting conditions across Commodities and Life Sciences, with management outlining further organic growth and Margin priorities for FY27.

FY26 Earnings and Cash Generation

ALS (ASX: ALQ) reported FY26 revenue of A$3,320.1 million, an increase of 10.7%. Underlying EBIT rose 19.3% to A$599.0 million, with the underlying EBIT margin reaching 18.0%. Underlying NPAT increased 25.8% to A$381.2 million, while statutory NPAT was A$318.7 million. Basic Earnings Per Share were 75.7 cents. Free Cash Flow generated during FY26 totalled A$674.1 million, and underlying return on Capital employed was 21.5%.

Commodities Leads Divisional Growth

The Commodities division generated FY26 revenue of A$1,294.2 million and underlying EBIT of A$381.5 million, with an EBIT margin of 29.5%. ALS linked the performance to higher exploration activity, increased sample volumes and pricing improvements. Minerals recorded an underlying EBIT margin of 33.0%, while Industrial Materials also delivered organic growth across its operations.

Life Sciences reported FY26 revenue of A$2,025.9 million and underlying EBIT of A$296.5 million, with an EBIT margin of 14.6%. Food delivered organic revenue growth of 7.2%, while Environmental faced softer conditions in the Americas. Pharmaceutical organic revenue declined 1.6%. The Nuvisan transformation programme was completed, with an exit run-rate of about EUR25 million in cost reductions.

Balance Sheet and Capital Allocation

Financial leverage declined to 1.5 times by 31 March 2026, below ALS’s targeted range of 1.7 to 2.3 times. Group Liquidity was above A$580 million and EBITDA cash conversion was 92%. Gross Capital Expenditure was A$263 million, including A$93.7 million directed to four hub laboratory upgrades. The final Dividend was 23.1 cents per share, 30% franked, taking FY26 dividends to 42.5 cents per share.

FY27 Priorities

For FY27, ALS expects Minerals organic revenue growth of 13% to 15%, with 15% to 17% growth anticipated in the first half. Management expects Minerals margins to remain around second-half FY26 levels in the first half of FY27, followed by a further 30 to 50 basis points of improvement in the second half. Industrial Materials is expected to deliver high single-digit organic growth, while Life Sciences is targeting improved mid-single-digit organic revenue growth and 30 to 50 basis points of margin improvement.

ALS (ASX: ALQ) has also identified foreign-exchange sensitivity in its FY27 outlook, estimating that each 1% movement in average major currency rates against the Australian dollar would affect annualised underlying EBIT by about A$3 million and underlying NPAT by about A$2 million. Management also noted uncertainty from global Tariff settings and Middle East-related supply-chain conditions.

Key Insights

ALS entered FY27 with higher FY26 earnings, improved cash generation and leverage below its targeted range. Commodities remains the main growth contributor, supported by mineral exploration activity, while Life Sciences presents a more varied operating picture. The FY27 outlook places emphasis on sustaining Minerals growth, improving Life Sciences performance and completing planned laboratory investments without weakening balance-sheet discipline.

FAQs

Q:What did ALS Limited (ASX: ALQ) report for FY26 revenue?

A:ALS reported FY26 revenue of A$3,320.1 million.

Q:What was ALS Limited’s underlying NPAT in FY26?

A:Underlying NPAT was A$381.2 million.

Q:Which ALS division was the main growth contributor in FY26?

A:Commodities was the main growth contributor, supported by higher mineral exploration activity and sample volumes.

Q:What was ALS Limited’s leverage at the end of FY26?

A:Financial leverage was 1.5 times, below the company’s targeted range of 1.7 to 2.3 times.

Q:What growth does ALS expect from Minerals in FY27?

A:ALS expects Minerals organic revenue growth of 13% to 15% for FY27.

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