Key Highlights

  • Revenue increased 2.4% to $271.0 million, while underlying EBITDA rose 6.6% to $53.3 million.
  • Statutory NPAT fell 52.8% to $11.0 million, compared with $23.3 million in FY25, reflecting one-off FY26 impacts and a material tax Credit in FY25.
  • Underlying EPS increased 48.2% to 32.9 cents, while free Cash Flow rose 83% to $18.3 million.
  • Net gearing declined to 39.5% from 42.5%, while the company secured or renewed more than $230 million of contracts during FY26.

Boom Logistics Limited (ASX:BOL) positions itself for growth with higher revenue, underlying Earnings and cash generation for FY26, although statutory net profit after tax declined sharply because of one-off items and the absence of a significant tax benefit recorded in the previous year. Revenue increased 2.4% to $271.0 million, while underlying EPS rose 48.2% to 32.9 cents. .

Revenue and Underlying Earnings Increase

Boom's FY26 revenue increased from $264.6 million to $271.0 million, supported by project activity across mining, infrastructure and transmission markets.

Underlying EBITDA increased 6.6% to $53.3 million from $50.0 million. Statutory EBITDA rose 3.6% to $51.8 million. The improvement in underlying earnings reflected tighter cost management, higher asset utilisation, pricing and Margin improvements.

Underlying NPAT, reported alongside profit before tax as a relevant performance measure going forward, increased 37.6% to $12.8 million from $9.3 million.

Statutory Profit Declines on One-Off Effects

Statutory NPAT fell 52.8% to $11.0 million from $23.3 million in FY25. Statutory EPS also declined 48.6% to 28.5 cents from 55.5 cents.

The company said the FY26 statutory figures were affected by one-off impacts associated with the Clarke Creek incident, recovery of misused funds and losses on asset sales. Comparability was also affected by a material tax credit that benefited FY25 statutory NPAT and EPS.

Against this backdrop, underlying EPS increased 48.2% to 32.9 cents from 22.2 cents, in line with the company's guidance.

Cash Flow and Balance Sheet Improve

Free cash flow increased 83% to $18.3 million from $10.0 million. Boom attributed the improvement to better cash conversion, disciplined Capital Expenditure and asset sales.

Net capital expenditure declined 33.7% to $16.7 million from $25.2 million. Cash at bank increased 72.7% to $24.7 million from $14.3 million.

Net gearing declined to 39.5% from 42.5%, representing a 7.1% reduction. The weighted average age of the fleet was 5.9 years, compared with 6.0 years in FY25.

Contract Wins Strengthen Revenue Visibility

Boom secured and renewed more than $230 million of contracts during FY26 across mining, infrastructure and energy markets. Among the significant agreements was the renewal of its Olympic Dam contract with BHP, which is expected to generate approximately $40 million annually over its initial five-year term.

The company entered FY27 with approximately $200 million of contracted work. Its opportunity pipeline includes mining, energy transmission, infrastructure and renewable energy projects.

The company said higher fuel prices linked to ongoing tensions in the Middle East had not materially affected its results to date, as increased costs are passed through to customers or addressed through contractual arrangements.

Shareholder Returns Increase

Boom's FY26 capital management included $7.0 million of on-market share buybacks, compared with $2.0 million in FY25. The company also declared an unfranked dividend of 2.25 cents per share, representing approximately $0.8 million, with payment scheduled for 30 September 2026.

For FY27, Boom intends to target Shareholder returns equivalent to 40% to 60% of the prior year's operating NPAT through dividends and/or on-market share buybacks. The proposed buyback may reach up to $7.0 million, subject to Board approval, market conditions and the company's financial position.

Operational Performance and FY27 Outlook

Boom reported a Total Recordable Injury Frequency Rate of 2.0 per million hours worked, down from 5.7 in FY25. The company recorded two lost-time injuries during FY26, including the Clarke Creek fatality in July 2025, with authorities continuing their enquiries.

Asset utilisation remained at 86%, unchanged from FY25, while operational labour efficiency was also 86%.

For FY27, Boom is budgeting for continued EPS growth despite a challenging macroeconomic environment. The company plans to focus on commercial performance, labour recovery, cost management and customer relationships while selectively pursuing opportunities that support fleet utilisation and returns.

Conclusion

Boom Logistics demonstrates strong prospects for moderate revenue growth in FY26 alongside higher underlying EBITDA, a 48.2% increase in underlying EPS and an 83% increase in free cash flow. However, statutory NPAT declined 52.8% to $11.0 million due to one-off FY26 impacts and the absence of the material tax credit that benefited FY25. The reduction in net gearing, lower capital expenditure and increased contracted work provide a different financial backdrop entering FY27, while the company's planned shareholder-return framework remains focused on distributing 40% to 60% of the prior year's operating NPAT.