Boom Logistics Lifts FY26 Underlying Earnings and Shareholder Returns

Boom Logistics (ASX: BOL) has delivered higher underlying earnings and stronger cash generation for the 2026 financial year, with revenue rising 2.4% to $271 million as activity across resources, infrastructure and transmission projects supported growth.

Underlying EBITDA increased 6.6% to $53.3m, while underlying NPAT rose 37.6% to $12.8m and underlying EPS climbed 48.2% to 32.9 cents.

Free cash flow increased 83% to $18.3m, cash at bank rose 72.7% to $24.7m and net gearing declined to 39.5%, giving Boom greater flexibility for fleet investment and shareholder returns.

Boom returned $7m through on-market share buybacks during FY26 and declared a 2.25 cents per share unfranked dividend worth about $0.8m, while entering FY27 with about $200m of contracted work.

Underlying Earnings Improve

Statutory EBITDA increased 3.6% to $51.8m as tighter cost control, improved pricing, and higher utilisation helped expand margins despite operating costs rising broadly in line with revenue.

Statutory NPAT fell to $11m from $23.3m, with year-on-year comparability affected by one-off costs associated with the Clarke Creek incident, recovery of misused funds, losses on asset sales, and a material tax credit that benefited FY25.

Return on net assets increased to 9% from 7% in FY25, with Boom targeting sustainable double-digit RoNA over the medium term through stronger utilisation, margin discipline, working capital efficiency and selective growth investment.

“FY26 was a year that Boom continued to drive benefits from structural and operational changes that have translated into stronger financial performance,” chief executive officer Lester Fernandez said.

“The changes made during FY26 have bolstered both the earnings capacity and balance sheet of the business, giving us greater flexibility to invest selectively in our fleet and pursue attractive growth opportunities, while maintaining a clear focus on returns and long-term shareholder value.”

Contracts Strengthen Base

Boom secured or renewed more than $230m of contracts during FY26, including its Olympic Dam agreement expected to generate about $40m a year over the initial five-year term.

Resources increased its share of group revenue to 55% from 47% and Infrastructure rose to 20% from 12%, while Renewables fell to 16% from 28% as lower wind farm project approvals and near-term construction delays affected activity.

The business continues to pursue opportunities across mining, energy transmission, infrastructure and renewable energy, with management maintaining a selective approach to work based on margins, risk and fleet deployment returns.

Boom is budgeting for continued EPS growth in FY27 despite a challenging macroeconomic environment, supported by long-term contracted work, a growing opportunity pipeline and continued focus on labour efficiency and asset utilisation.

Enhanced Cash Flow

Net cash flow from operating activities increased to $52.8m from $37.1m, while lower capital expenditure and stronger cash conversion helped lift free cash flow and close FY26 with $24.7m in cash.

Net debt reduced to $85.1m from $93.2m and gearing remained within Boom’s 35% to 45% target range, with $77.3m of undrawn facility capacity providing additional funding flexibility.

The fleet comprised about 295 lifting and ancillary assets with a weighted average age of 5.9 years, while FY26 net capital expenditure of $16.7m supported ongoing fleet regeneration and rejuvenation.

For FY27, Boom plans to target shareholder returns equal to 40% to 60% of the prior year’s operating NPAT through buybacks and dividends, with the buyback program targeting up to $7m subject to board approval, market conditions and financial capacity.