PeopleIN secures NZ$24 million acquisition to build Asia Pacific infrastructure recruitment platform
PeopleIN (ASX: PPE) has announced the PeopleIN Infrawork acquisition for NZ$24 million in cash, positioning the company as a cross-border infrastructure recruitment platform serving Australia and New Zealand. The acquisition of New Zealand’s largest provider of skilled migrant contract labour and migration services comes as both countries face acute shortages of construction workers amid major infrastructure investment cycles. Alongside the announcement, PeopleIN’s H1 FY26 results came in line with expectations, reporting $16.1 million in earnings from total operations and $10.5 million normalised EBITDA from ongoing business.
The PeopleIN Infrawork acquisition is forecast to generate NZ$5 million in annual EBITDA, with an additional earnout structure that could see total payments reach $6 million to $15 million over three years based on performance targets. The maximum payable is capped at 3.7x EBITDA, and completion is expected in Q3 FY26, subject to customary pre-completion conditions.
Post-acquisition and after continuing the share buy-back programme, net debt is expected to remain conservative at 1.5x normalised EBITDA. No interim dividend has been declared, with management preserving capital for growth and potential further acquisitions.
What is cross-border labour mobility and why it matters for infrastructure recruitment
Cross-border labour mobility refers to the ability to source, train and deploy skilled workers across multiple countries through established migration and recruitment pipelines. This model addresses a structural supply problem facing Australia and New Zealand, both of which are experiencing acute shortages of construction and infrastructure workers as government infrastructure spending accelerates.
Infrawork specialises in skilled migrant contract labour and migration services, giving PeopleIN (ASX: PPE) access to a broader candidate pipeline across the Asia Pacific region. This capability becomes particularly valuable in markets like South-East Queensland, where infrastructure investment is ramping up and local labour supply cannot meet demand.
Companies with established international recruitment pipelines can respond faster to labour shortages, creating competitive advantages when infrastructure projects accelerate. The acquisition positions PeopleIN to service critical infrastructure, manufacturing, food services and agriculture sectors across both countries with a unified talent pool.
Engineering, Trades and Labour division delivers 44% organic growth
While overall revenue declined 8.2% to $394 million for H1 FY26, PeopleIN’s strategic pivot toward infrastructure construction is gaining traction. The Engineering, Trades and Labour division achieved over 44% organic growth, driven primarily by Queensland operations and exposure to building infrastructure investment across the state.
The revenue decline was predominantly driven by short-term delays in the visa processing of PALM (Pacific Australia Labour Mobility) workers, a timing issue rather than a structural problem. PALM worker numbers are expected to increase again in H2 FY26 as visa processing normalises. Ongoing business normalised EBITDA came in at $10.5 million, down 9.2% on the previous corresponding period, reflecting the temporary PALM processing headwinds.
Tom Reardon, Co-Founder and incoming Managing Director
“The growing momentum in our Engineering, Trades and Labour division has started benefiting from growing market confidence in South-East Queensland and upcoming infrastructure spend. PeopleIN is well placed to satisfy the acute shortage of construction workers in the region.”
The organic growth in the core infrastructure division demonstrates that PeopleIN’s strategic repositioning is working before the Infrawork acquisition even completes. The PALM delays represent a short-term processing bottleneck, not a fundamental weakness in the business model.
Strategic simplification: divesting to focus on high-growth verticals
PeopleIN has intentionally divested lower-growth assets to narrow its focus on four key sectors: infrastructure construction, manufacturing, agriculture and food services. This deliberate simplification aims to improve returns by concentrating resources on the company’s most resilient and high-performing verticals.
Tom Reardon, Co-Founder and incoming Managing Director
“H1 FY26 has been a transformative period for PeopleIN. We have intentionally simplified our operations, divesting lower-growth assets to double down on our most resilient and high-performing verticals of infrastructure construction and food services.”
The strategic transformation positions PeopleIN as a more focused operator aligned with long-term infrastructure and essential services demand, rather than a broad-based workforce provider.
Balance sheet remains strong with capacity for further acquisitions
Despite the NZ$24 million acquisition and ongoing share buy-back programme, PeopleIN’s balance sheet remains conservatively positioned. Post-acquisition net debt is expected to sit at 1.5x normalised EBITDA, leaving capacity for additional bolt-on deals without stretching leverage.
The decision not to declare an interim dividend reflects management’s priority to maintain balance sheet strength and pursue further accretive acquisitions. The continuation of the share buy-back programme signals confidence in the company’s valuation and strategic direction.
| Metric | H1 FY26 | Commentary |
|---|---|---|
| Revenue | $394m | Down 8.2% (PALM delays) |
| Normalised EBITDA | $10.5m | Down 9.2% on PCP |
| Net Debt (post-acquisition) | 1.5x EBITDA | Conservative leverage |
| Infrawork Acquisition | NZ$24m | Expected Q3 FY26 completion |
Low leverage post-acquisition means PeopleIN (ASX: PPE) can pursue further acquisitions without compromising financial flexibility. For a company in strategic transformation mode, preserving capital for growth rather than paying dividends is appropriate.
What’s next for PeopleIN
Multiple near-term catalysts provide visibility on PeopleIN’s earnings recovery and growth trajectory:
- Infrawork acquisition completion (Q3 FY26)
- PALM visa processing normalisation (H2 FY26)
- Continued Engineering, Trades and Labour growth from Queensland infrastructure
- Potential additional acquisitions with balance sheet capacity
The Infrawork acquisition is expected to complete in Q3 FY26, adding NZ$5 million in annual EBITDA to the group. PALM worker numbers will increase in H2 as visa processing delays clear, removing the revenue headwind that affected H1 results.
PeopleIN’s exposure to South-East Queensland’s infrastructure pipeline positions the company to benefit from sustained construction activity over coming years. Management has signalled capacity for further accretive acquisitions, suggesting the Infrawork deal may not be the last in this strategic consolidation phase.
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