Boom Logistics lifts earnings guidance after strong half-year performance
Boom Logistics has upgraded its full-year earnings guidance following a strong first-half performance, with the Boom Logistics FY26 Interim Results revealing statutory earnings per share are now expected to grow approximately 20% compared to prior guidance of approximately 15%. The diversified lifting and project logistics operator reported revenue of $142.2 million for the six months ended 31 December 2025, representing 8% growth on the prior corresponding period, while underlying net profit after tax climbed 32% to $6.6 million.
The result positions (ASX: BOL) for accelerated shareholder returns, with management lifting its capital return target to $6.0 million for FY26, up from the previous $4.0 million target. Underlying earnings per share reached 16 cents for the half, up 39% on 1H FY25, despite one-off incidents impacting the statutory result.
Managing Director and Chief Executive Officer Lester Fernandez attributed the performance to targeted operational initiatives, including fleet regeneration, maintaining a profitable customer base, and growth across core sectors. The upgraded guidance reflects improved fleet productivity, reduced idle assets, and stronger margin mix from contract renewals in mining and energy sectors.
What does EBITDA mean and why does it matter for Boom?
EBITDA stands for Earnings Before Interest, Tax, Depreciation and Amortisation. It measures a company’s operating profitability before accounting for financing costs, tax obligations, and non-cash charges related to asset depreciation.
For asset-heavy businesses like crane and logistics operators, EBITDA provides a clearer picture of operational performance. These companies carry substantial fleets of specialised equipment that depreciate over time, but this accounting charge doesn’t reflect actual cash leaving the business. By excluding depreciation, EBITDA reveals how effectively the core operations generate cash earnings before financing decisions and tax treatments.
Boom’s underlying EBITDA of $26.8 million for 1H FY26 demonstrates the lifting and logistics business generates robust cash earnings from its fleet and project activities, independent of how the company finances its cranes or structures its balance sheet. This metric enables investors to compare Boom’s operational efficiency against industry peers on a like-for-like basis, regardless of different capital structures or equipment ownership models.
Key financial metrics at a glance
| Metric | 1H FY26 | 1H FY25 | Change | Investment Read |
|---|---|---|---|---|
| Revenue | $142.2M | $131.7M | +8% | Growth driven by mining, infrastructure, transmission line projects and improved pricing |
| Underlying EBITDA | $26.8M | $25.5M | +5% | Core operating profitability expanding through margin initiatives and higher utilisation |
| Underlying NPAT | $6.6M | $5.0M | +32% | Bottom-line profit growth outpacing revenue, indicating operational leverage |
| Underlying EPS | 16cps | 12cps | +39% | Earnings per share growth signals improving shareholder value creation |
| Cash at Bank | $25.5M | $14.7M | +73% | Strengthened liquidity supports capital returns and operational flexibility |
Capital returns accelerate as Boom lifts shareholder return target to $6 million
Boom has increased its FY26 capital management target to $6.0 million, up 50% from the prior $4.0 million target, reflecting Board confidence in sustainable cash generation. The company has already deployed $3.0 million through an on-market share buyback during 1H FY26, acquiring 2.03 million shares.
The enhanced capital return programme operates within Boom’s established framework, which targets the return of 40-60% of prior year net profit after tax to shareholders. Returns are delivered primarily through on-market share buybacks, with dividends serving as a secondary mechanism subject to Board approval, market conditions, and the company’s financial circumstances.
The company paid a final FY25 unfranked dividend of 2 cents per share in September 2025, totalling $0.8 million. The capital return mechanics operate as follows:
- Primary mechanism: on-market share buyback (delivers capital efficiency and potential EPS accretion)
- Secondary mechanism: dividends (subject to Board approval and franking credit availability)
- Framework: targeting 40-60% of prior year NPAT returned to shareholders
The 50% uplift in the shareholder return target signals management’s growing confidence in the business trajectory. For investors, the combination of buybacks and potential dividends provides flexible capital returns while maintaining balance sheet strength to support operational growth. The disciplined approach to capital allocation, returning excess cash rather than pursuing lower-return investments, enhances per-share value for continuing shareholders.
CEO commentary on operational momentum
Lester Fernandez, Managing Director and Chief Executive Officer
“Our upgraded guidance is supported by a strong contract pipeline, disciplined fleet allocation, and ongoing margin expansion in core sectors.”
Fernandez emphasised that targeted operational initiatives continue to deliver measurable outcomes, reflected in the strong half-year result. Key contributors include fleet regeneration undertaken in prior periods, maintaining a high-quality and profitable customer base, and growth across Boom’s core sectors, particularly in resources, infrastructure, and ongoing energy sector work.
The CEO noted that Boom operates as a leading participant in its markets, underpinned by strong customer relationships and disciplined contract management. Cash generation remains robust, with the increased on-market share buyback reflecting growing confidence in the business outlook.
Balance sheet strength supports growth and returns
Boom’s financial position strengthened materially during 1H FY26, with operating cash flow climbing 52% to $15.1 million driven by improved cash conversion and reduced capital expenditure. The balance sheet improvements include:
- Cash at bank increased 73% to $25.5 million
- Net gearing reduced to 38%, down from 42% in the prior period
- Net capital expenditure of $1.7 million, down 92% from $21.3 million in 1H FY25
- Weighted average fleet age maintained at 5.9 years despite minimal net capex
The capital expenditure discipline reflects Boom’s strategic approach to fleet management. Half-year capex of $4.4 million was largely offset by asset disposals, resulting in net capex of just $1.7 million. Despite this conservative investment approach, the weighted average age of the fleet remained steady at 5.9 years, indicating the company is maintaining fleet quality without excessive capital deployment.
For investors, the combination of rising cash reserves, falling gearing, and maintained fleet quality demonstrates Boom is funding both operational growth and shareholder returns without straining the balance sheet. Net gearing of 38% provides capacity for future fleet investment if attractive opportunities emerge, while the strong cash position ($25.5 million) ensures liquidity for the expanded $6.0 million capital return programme.
One-off items explained
The statutory net profit after tax of $5.2 million differs from the underlying NPAT of $6.6 million due to two non-recurring items recorded during 1H FY26. The Clarke Creek incident impacted the result by $2.3 million, while the company recovered misused funds totalling $0.8 million net of associated costs, resulting in a combined net impact of $1.5 million.
These adjustments explain why statutory NPAT declined 73% compared to 1H FY25, while underlying NPAT grew 32%. The underlying result excludes these one-off items and better reflects the ongoing earnings power of Boom’s core lifting and logistics operations. For investors assessing the company’s sustainable profitability, the underlying metrics provide a more accurate view of operational performance and future earnings potential.
What’s next for Boom Logistics
Boom has upgraded its full-year guidance, now expecting statutory NPAT of approximately $10.5 million and underlying NPAT of approximately $11.9 million for FY26. The revised statutory earnings per share guidance of approximately 26 cents represents 20% growth compared to FY25’s 22 cents, up from prior guidance of approximately 15% growth. Underlying EPS is projected to reach 30 cents, representing approximately 37% growth on FY25.
The upgraded outlook is supported by several operational factors. Improved fleet productivity and reduced idle assets are enhancing utilisation rates across the crane and equipment fleet. Contract renewals in mining and energy sectors are delivering a stronger margin mix, while continued execution discipline and effective matching of assets to work requirements are supporting profitability. Enhanced labour efficiency and ongoing capital discipline in fleet allocation are also contributing to the improved earnings trajectory.
Management’s decision to lift the capital return target to $6.0 million demonstrates confidence in the sustainability of these operational improvements. The strong contract pipeline, combined with disciplined fleet allocation and ongoing margin expansion in core sectors, positions Boom for continued earnings growth beyond 1H FY26.
Investors seeking further insight into the company’s strategy and operational performance can access additional commentary through the results webinar hosted by Managing Director Lester Fernandez and Interim Chief Financial Officer Sarah Johns. The upgraded guidance, supported by demonstrated operational improvements and enhanced capital returns, positions Boom as a potential re-rating candidate if execution momentum continues through the second half of FY26.
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