Freightways posts strong H2 2026 earnings despite fuel cost pressures

Freightways Ltd reported stronger-than-expected second-half results for its 2026 fiscal year on Thursday, with revenue and profit growth offsetting the impact of elevated fuel costs.

The New Zealand-based logistics company said revenue for the six months ended December 31, 2025, rose 8.2% year-over-year to NZ$1.45 billion ($880 million), while net profit increased 12.5% to NZ$124 million. Analysts had forecast revenue of NZ$1.41 billion and profit of NZ$118 million, according to a Refinitiv poll.

Chief Executive Officer Mark Tait attributed the outperformance to strong demand in domestic freight and courier services, particularly in e-commerce logistics. However, he noted that rising diesel prices had trimmed margins by 1.8 percentage points compared with the prior period. The company’s fuel surcharge mechanism partially mitigated the impact, but costs remained a headwind.

Operating cash flow increased 9.1% to NZ$187 million, supporting Freightways’ dividend policy. The board declared a final dividend of 25 NZ cents per share, bringing the full-year payout to 48 NZ cents, a 5% increase from the previous year.

Looking ahead, Tait said Freightways expects continued growth in 2026, driven by expansion in its same-day delivery services and further integration of digital logistics platforms. The company also plans to invest NZ$80 million in fleet upgrades and fuel-efficient technologies to offset future cost pressures.

Shares in Freightways were little changed in early trading, reflecting the market’s focus on the margin squeeze despite the headline outperformance.