Lindsay Australia (ASX:LAU) shares jumped nearly 7% on Monday after the logistics and transport group reported record FY26 results, crossing $1 billion in annual Revenue for the first time and delivering a sharp jump in underlying earnings.

FY26 Results at a Glance

  • Group revenue up 26.2% to $1.073 billion — first time above $1 billion.
  • Underlying EBITDA up 25.6% to $127.8 million; underlying EBIT up 37.7% to $60.4 million.
  • Reported NPAT up 31.5% to $22.9 million; underlying EPS up 10.0% to 7.6 cents.
  • Transport revenue up 32.9% to $762.9 million, boosted by a full year of SRT Logistics.
  • Final Dividend of 1.7 cents per share, taking FY26 total to 3.8 cents — unchanged from FY25.

What's Powering the Growth

Transport remains the largest growth engine, helped by the first full-year contribution from SRT Logistics and expansion into Tasmania and Southwest Western Australia. The company also grew its use of High Productivity Vehicles, now accounting for over 13% of road kilometres travelled.

The Rural division and W.B. Hunter also posted double-digit EBIT growth, while a new five-year Primary Connect contract — covering around 40 Woolworths stores in North Queensland — is expected to add $30–36 million in annual revenue once fully ramped by FY28.

Balance Sheet and Returns

  • Net Leverage improved to 1.92x, down from 2.23x at the half-year, within target range.
  • Return on invested capital: 13.9% (vs 14.3% in FY25).
  • Operating cash flow of $75.2 million; normalised cash conversion of 74%.
  • FY27 capex expected to rise to ~$57 million, including new Primary Connect infrastructure.

The Bottom Line

Today's rally reflects genuine Earnings momentum — record revenue, sharply higher EBIT and improving Balance Sheet metrics, not just a one-off gain. With the Primary Connect contract set to scale through FY27 and FY28, the key question for investors is whether Lindsay can convert its expanded network into sustained Margin improvement.