LGI Ltd reported a 35% increase in net profit after tax for fiscal 2026, driven by higher electricity generation, expanded carbon credit output and improved pricing, though its shares slipped 0.41% to $2.45 on Thursday.
Revenue climbed 17% year-over-year to more than $2 million, supported by gains in electricity, Australian Carbon Credit Units (ACCUs) and Large-scale Generation Certificates (LGCs). EBITDA rose 26% to a record, while the EBITDA margin widened to 55% due to strict cost controls. Net interest expense fell over 40% following debt reduction.
The company generated 584,000 ACCUs in FY26, an 18% increase from FY25, with all units under contract. ACCU production is projected to grow at a compound annual rate of around 10% through FY29. Biogas recovery volumes rose 33% from FY25, while electricity generation increased 29%. Generator availability remained at 97%. LGI captured an average electricity price of $97 per megawatt-hour, approximately 35% above the AEMO regional average across Queensland and New South Wales.
LGI’s operating portfolio expanded to 37 sites, including nine power stations and 25 carbon abatement facilities, with eight new carbon sites added over the past year. The company is progressing toward a target of more than 80 megawatts of operating capacity, including a 6-megawatt battery project at Mugga Lane in Canberra, nearing completion and recognized for engineering excellence by the Institute of Public Works Engineering Australasia.
A 12-megawatt standalone battery project at Belrose is expected to reach primary equipment delivery by year-end, with commissioning planned for early FY27. An additional 1-megawatt expansion is scheduled for Toowoomba in H2 FY27. The BINGO Eastern Creek site was registered for ACCU creation in late FY26.
LGI’s debt facility was increased to $82 million from $49 million, with an additional $20 million accordion facility available, bringing the potential total to $102 million. The company declared a fully franked dividend of A$0.0135 per share. Shares have gained 16.9% over the past year but remain down 48% from their 52-week high of $4.76.
