LGI (ASX:LGI) Adds Solar Assets as FY26 Biogas Generation Increases

Aditi Sarkar

12 November 2026 10:17 PM AEDT

LGI (ASX:LGI) Adds Solar Assets as FY26 Biogas Generation Increases

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Highlights

LGI (ASX:LGI) reported AUD 43.311 million FY26 revenue.
Net profit after tax rose to AUD 8.772 million.
Biogas flows reached 170.2 million cubic metres in FY26.
The company added two Queensland solar Assets totalling 42 MW AC.

LGI Limited captures landfill gas, converts it into renewable electricity and carbon-abatement products, and has expanded its electricity portfolio into solar generation. LGI (ASX:LGI) finished trading on 12 November 2026 at AUD 2.50. Its FY26 results demonstrate growth in biogas collection and power output, while the company’s disclosed Acquisition of two Queensland solar farms adds another generation technology to an operation historically centred on landfill sites.

Landfill Gas and Environmental Products

LGI (ASX:LGI) works with landfill operators to install and manage gas extraction systems. Captured biogas can fuel electricity generation or be flared for emission abatement. Eligible activities can produce Australian Carbon Credit Units, while renewable electricity generation may create large-scale generation certificates. These are distinct products with different Demand and regulatory exposures. Landfill gas quantities depend on waste decomposition and site management, while electricity receipts depend on generation operations and market or contractual arrangements.

FY26 Biogas Production and Power Output

For the year ended 30 June 2026, LGI reported biogas flows of 170.2 million cubic metres, up from 127.7 million in FY25. Electricity generation rose to 140,841 MWh from 109,119 MWh. The company created 584,191 Australian Carbon Credit Units, up from 493,446. Generation fleet availability was 97%, compared with 98% in FY25. At 30 June 2026 the company reported 37 contracted projects across Queensland, New South Wales and the Australian Capital Territory. LGI (ASX:LGI) thereby increased output across both electricity and carbon products, although generation availability declined slightly.

FY26 Earnings and Cash Context

LGI reported FY26 Revenue from ordinary activities, excluding interest income, of AUD 43.311 million compared with AUD 36.789 million in FY25. Statutory and underlying EBITDA was AUD 21.799 million versus AUD 17.366 million, while net profit after tax reached AUD 8.772 million from AUD 6.476 million. Its disclosed net revenue measure, after specified in-kind carbon-unit Royalty costs, rose to AUD 39.842 million from AUD 33.940 million. Underlying EBITDA Margin on that net-revenue basis was 54.7%, against 51.2%. These measures are calculated differently and should not be interchanged.

Solar Acquisition and Portfolio Expansion

LGI’s company website identifies the addition of two operating Queensland solar farms, Chinchilla and Brigalow, with combined capacity of approximately 42 MW alternating current, or 54 MW peak. Chinchilla accounts for 14.7 MW AC and Brigalow 27.3 MW AC. This gives LGI (ASX:LGI) another source of renewable electricity beyond landfill gas. Solar output depends on sunlight, plant availability and grid access, so the acquired assets introduce a different operating pattern. Integration, operating costs and the contribution to future earnings remain monitoring points rather than established financial results.

Risk Factors and What Comes Next

Carbon-credit rules, credit prices, energy market conditions, landfill gas volumes and extraction-system reliability may influence future results. LGI reported a fully franked FY26 final Dividend of 1.35 cents per share and an Interim Dividend of 1.25 cents. Cash deployment on expansion projects and the operation of new solar assets could affect financial flexibility. The next company updates may clarify solar contribution, carbon-unit issuance, contracted site additions, generation volumes and the relationship between Cash Flow and accounting earnings.

Additional Operating Considerations

In FY26, LGI reported underlying EBIT of AUD 12.872 million, compared with AUD 10.885 million in the prior year. Its disclosed underlying EBIT margin on net revenue was 32.3%, compared with 32.1%. The increase in renewable output was greater than the increase in the number of contracted projects, highlighting the relevance of activity levels at existing sites as well as newly contracted facilities. Solar acquisitions will introduce different maintenance and forecasting requirements. The company will need to report their actual contribution before conclusions about returns can be drawn.

Key Insights

LGI (ASX:LGI) increased gas collection, renewable generation and statutory earnings in FY26. Its two Queensland solar farms broaden the generation portfolio but also create integration requirements. The company’s future disclosures will help establish the financial contribution from solar alongside its landfill gas and carbon-abatement operations.

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