Mainfreight Half Year Financial Results 30 September 2025

MAINFREIGHT LIMITED
12 November 2025

Financial result for the six months ended 30 September 2025 (Unaudited)

Commentary

Mainfreight is pleased to confirm our half-year financial results to 30 September 2025.

Group Result Summary HY26 v HY25
Revenue NZ$2.61 billion up 2.1%
Profit before tax (PBT) NZ$131.72 million down 18.3%
Net profit NZ$93.38 million down 18.5%

• After minimal foreign exchange impacts, Group Revenue is down 1.4%, PBT is down 19.4% and Net profit is down 19.7%.
• Operating cash flows increased from NZ$191.7 million to NZ$209.6 million.
• An interim dividend of 85 cents per share has been set by the Directors.
• The prior half-year result included NZ$98.8 million revenue and NZ$12.4 million PBT from project activity now discontinued.

Group Operating Cash Flows

Operating cash flows were NZ$209.6 million, up from NZ$191.7 million in the prior comparative period. These improvements are a consequence of improved debt collections.

Net funds (debt) increased to (NZ$68.7 million) from NZ$14 million as at Year End 2025.

Debt facilities total NZ$511 million, of which NZ$339 million remains undrawn.

Net capital expenditure totalled NZ$102.7 million for the half year period to
September 2025. Expenditure on property was NZ$67 million. Capital expenditure is expected to be $215.4 million in the year to 31 March 2026.

Property Update

Property activity that was completed in the past six months:
New Zealand
• Whanganui Transport cross-dock completed – leased
• Hastings (Hawkes Bay) Transport cross-dock completed – owned
• Daily Freight Auckland Transport cross-dock upgrade completed and opening December 2025 – owned
• New Plymouth Transport cross-dock extension and office update – owned
Australia
• Townsville Transport cross-dock – leased
Europe
• Romanian Warehouse extension – owned

Property construction continues on the following sites:
New Zealand
• Christchurch Warehousing expected completion May 2026 – leased
Australia
• Brisbane Transport cross-dock expected completion April 2026 – owned
• Melbourne Airfreight Perishables expected completion January 2026 – leased

Lease and property negotiations underway:
New Zealand
• Auckland Warehouse
• Blenheim Transport cross-dock
Australia
• Perth Transport cross-dock 

Dividend

The Directors have approved an interim dividend of 85 cents per share, fully imputed at the 28% company tax rate. With the record date on 12 December 2025, payment will be made 19 December 2025.

Product Performance (NZ$) HY26 v HY25

Transport
Revenue: $1.19 billion up 7.0%
PBT: $58.4 million down 20.6%
Volumes (Tonnage) up 3.6%

Warehousing
Revenue: $438.3 million up 6.7%
PBT: $20.7 million down 1.8%
Total square metres 1.116 million
Orders processed down 9%

Air & Ocean
Revenue: $980.1 million down 5.0%
PBT: $52.6 million down 20.9%
Sea freight (TEU) up 7%, Airfreight (kgs) up 5%

Ocean Freight Projects

During the past 18 months there has been a significant amount of one-off project activity – the majority being in Australia Air & Ocean.
Revenue and PBT impacts are as follows.
FY 2025 HY 2026
Revenue NZ$131.2 million NZ$22.7 million
PBT NZ$16.2 million NZ$1.6 million

The cyclical nature of this project business, and the lack of contribution to the balance of our network activities, prompted a review to not pursue any further large project activity.

 
Divisional Performance (figures in local currencies)

New Zealand
Revenue NZ$575.6 million up 3.9%
PBT NZ$44.1 million down 7.4%

Trading performance across our New Zealand divisions has improved as the half year has progressed. Property cost increases for our Transport and Warehousing divisions contributed to the disappointing profit reduction.

Air & Ocean revenue and gross margin management were satisfactory in a difficult trading environment, finishing in line with the prior year’s performance.

Trading through October, and now November, has seen further improvement which we expect to continue into the new year.

Australia
Revenue AU$736.8 million down 2.9%
PBT AU$58.6 million down 3.8%

Excluding the Air & Ocean project contributions from the prior period, our Australian business continues to perform satisfactorily. Higher than expected labour cost overheads impacted net margins. Transport continues to improve sales revenue as a consequence of market share gains. Gross margins remain in line with the year prior. Warehousing improved both revenue and profitability during the period.

Air & Ocean, net of project influence, continues to improve market share and profitability.

Trading through October, and into November, continues these current trends. Year-end expectations remain for further improvements.

Europe
Revenue €307.2 million up 5.4%
PBT €9.3 million down 31.9%

Trading performance is marginally behind the year prior as a consequence of higher casual labour costs due to new customer implementations across our Warehousing and Transport divisions. Property disposal in the year prior magnifies the disappointing PBT performance versus the prior year.

Air & Ocean activity continues to improve with increasing market share gains.

Trading post half year-end has seen small improvements. Poorer than expected Warehousing utilisation enables additional sales opportunities without the need for any additional new facilities in the near term.

Asia
Revenue US$60.5 million down 7.5%
PBT US$5.6 million down 5%

Freight revenue reductions come as a result of significantly lower Ocean freight rates, particularly on the Trans-Pacific trade lanes as a result of USA tariff implementations. As signalled at our Annual Shareholders Meeting market update, we have closed three warehousing branches due to poor profitability performance.

Trading post the half year has seen similar results. We do not expect to see Ocean freight rate improvements for the remainder of the financial year.

The Americas
Revenue US$313.2 million down 9.7%
PBT US($2.3 million) down 128%

A disappointing performance in our USA business, driven by PBT losses in our Transport and CaroTrans divisions. Transport sales revenues are in line with the prior year – however gross margin performance was poor as a consequence of higher Transport costs. Warehousing trading, whilst profitable, was below expectations as utilisation in two of our eight warehouses declined to unacceptable levels. Canadian Warehousing sales performance has improved, requiring a threefold increase in square metre footprint in Toronto.

Air & Ocean performance continued to be satisfactory, despite the tariff impositions. Gross margins improved, albeit sales revenues declined on the back of low international Ocean freight rates.

Trading post the half year has seen similar performance across all divisions. We continue to reiterate the need for patient hard work to find acceptable growth and profitability in this market.

Outlook

We expect our Australian and New Zealand businesses to continue to see improvement as we trade into the second half of the financial year. Sales activities in both regions are increasing market share, and we are seeing improving freight volume increases from our customers.

Asia will continue to trade at current levels. Improvements will be dependent on the Ocean freight rate and freight tonnage.

Our European operations have reduced labour costs as new customers are now settled into our warehouses. This should improve efficiencies and increasing profitability.

In the Americas we have had a number of sales gains across all divisions, which will improve our performance. As we have already mentioned, we do expect acceptable returns to take time.

Our network development will continue as our customers encourage us to open more warehouses – with Christchurch and the planned Auckland sites as examples of this considered expansion.

Market share gains in Transport require additional cross-docks, and an expanding geographical presence for our Air & Ocean divisions.

We continue to be well positioned to find improvement after a difficult period of trading.

Mainfreight will release its financial results for the full 2026 financial year on 28 May 2026.

For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email [email protected]

or

Graeme Illing, Chief Financial Officer, telephone +64 9 259 5522, +64 276 424 473 or email [email protected].

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