ALS Limited (ASX:ALQ): Minerals Testing Leads Growth Ahead of Half-Year Results

Aditi Sarkar

12 November 2026 06:01 PM AEDT

ALS Limited (ASX:ALQ): Minerals Testing Leads Growth Ahead of Half-Year Results

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Highlights

ALS reported FY26 Revenue of AUD 3.32 billion, an increase of 10.7%.
Underlying net profit after tax increased 25.8% to AUD 381.2 million.
Commodities revenue increased 18.8%, outpacing Life Sciences growth.
The company scheduled its H1 FY27 results for 23 November 2026.

ALS Limited (ASX:ALQ) provides laboratory testing, inspection and analytical services internationally. Its Commodities businesses support mineral exploration and other industrial activities, while Life Sciences laboratories test environmental, food and pharmaceutical samples. The FY26 reporting year ended 31 March 2026 showed that growth in minerals testing was a leading contributor to earnings, while several Life Sciences activities experienced more uneven demand.

Group Earnings and Cash Generation

For FY26, ALS Limited (ASX:ALQ) recorded revenue of AUD 3,320.1 million, increasing 10.7% from FY25. Underlying earnings before interest and tax rose 19.3% to AUD 599.0 million and the underlying Margin improved to 18.0% from 16.7%. Underlying net profit after tax increased 25.8% to AUD 381.2 million, while statutory net profit reached AUD 318.7 million.

Free Cash Flow totalled AUD 674.1 million, versus AUD 590.6 million in FY25. Net Debt declined to approximately AUD 1.07 billion from AUD 1.42 billion, and the reported Leverage Ratio fell to 1.5 times. These measures provide context for the group’s ability to fund its ongoing laboratory Investment programme, but they do not eliminate execution or Demand risks.

Minerals Laboratories Drive Commodities Result

ALS Limited (ASX:ALQ) reported Commodities revenue of AUD 1,294.2 million, up 18.8%, and underlying EBIT of AUD 381.5 million, up 25.9%. The divisional EBIT margin rose to 29.5%. Minerals organic revenue grew 20.2%, including 22.7% growth in geochemistry, as exploration sample volumes and pricing supported activity.

Minerals EBIT margin reached 33.0%, reflecting higher laboratory utilisation and the division’s operating leverage. That relationship can reverse if sample volumes fall, making exploration budgets a continuing sensitivity. Industrial Materials, which includes other commodities testing businesses, also contributed to the division’s overall result.

Life Sciences Performance and Investment

Life Sciences revenue for ALS Limited (ASX:ALQ) reached AUD 2,025.9 million, rising 6.0%, while organic growth was 2.8%. Underlying EBIT increased 10.2% to AUD 296.5 million. Food testing organic revenue advanced 7.2%, Environmental grew 2.8%, and Pharmaceutical organic revenue declined 1.6%. Performance varied across regions and testing lines.

The company reported remediation progress at its acquired York environmental testing operation and completion of its Nuvisan restructuring programme. ALS is investing in regional laboratory hubs, including Sydney and Lima, which management expected to commission in H2 FY27. Capital Investment remains subject to completion schedules and subsequent customer demand rather than representing immediate fully operating capacity.

FY27 Guidance and Near-Term Checkpoints

ALS Limited (ASX:ALQ) guided for mid-to-high single-digit group organic revenue growth in FY27 and margin expansion similar to FY26. Management expected Minerals organic revenue growth of 13% to 15%, while targeting improved mid-single-digit organic growth in Life Sciences. These are forward-looking targets and could change with customer activity, currency movements and project delivery.

The company also identified foreign exchange exposure and potential supply-chain disruption as risks. With first-half FY27 results scheduled for 23 November 2026, the next disclosure will provide evidence on whether minerals demand, Life Sciences improvement and laboratory investments are tracking against management expectations.

Key Insights

ALS Limited (ASX:ALQ) benefited from increased minerals laboratory activity in FY26, improving revenue, earnings and net debt. Life Sciences growth was more mixed, leaving execution on operational improvements and new laboratories relevant to FY27. November’s half-year result should clarify the performance of both divisions.

FAQs

Q: When are H1 FY27 results scheduled?

A:23 November 2026.

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