LGI reported (ASX:LGI) its FY2026 results in August 2026. Revenue rose 17% to A$39.8 million and underlying EBITDA increased 26% to A$21.8 million, delivering a record EBITDA Margin of around 55%. The company said it added three new contracted sites and eight carbon-abatement projects during the year, and expanded its Debt Facility by roughly two-thirds to A$82.5 million to support further growth. LGI also noted it achieved realised electricity prices well above the market average through its hedging approach.

What Could Come Next

Growth is expected to come from commissioning new contracted sites, expanding generation capacity and adding carbon-abatement projects, with the expanded debt facility providing funding headroom. The value of LGI's Earnings is closely tied to ACCU and electricity prices, so movements in those markets, along with the pace of project delivery and generation uptime, will shape the outlook. Execution on the pipeline toward its longer-term capacity ambitions above 80 megawatts will be a key focus for the market through FY2027.

Risks to Watch

LGI's earnings are exposed to carbon-credit and wholesale electricity price volatility, and changes to ACCU policy or methodology could affect revenue. The company is investing to grow, which carries execution and Capital risk, and the larger debt facility increases financial leverage. Landfill-gas volumes depend on the operation of host sites, adding an operational dependency outside the company's direct control.

Conclusion

LGI delivered record margins and continued portfolio expansion in FY2026, reinforcing its position as a pure-play landfill clean-energy operator on the ASX. With new sites, carbon-abatement projects and a larger debt facility supporting growth, investors will watch delivery of the pipeline and trends in carbon and electricity prices to gauge whether the strong margins can be sustained through FY2027.