Improving economic conditions in New Zealand have helped lift Freightways’ performance for the first half of the financial year, with continued improvement expected in the second half.

For the six months to December 31, 2025, Freightways reported total revenue of $718.1 million, up 8.5% compared to the same period the year prior.

Freightways’ earnings before interest, tax and amortisation (ebita) increased by 12.2% to $96.5m over the half, with ebita margin improving from 13% to 13.4%.

The company reported a net profit of $52.5m for the half, up 17.2% compared to the year prior, with basic earnings per share increasing to 29.3 cents per share.

Segment growth

Freightways’ Express Package and Business Mail division delivered revenue growth, ebita growth and margin improvement during the half year.

Allied and Post Haste performed particularly well through the period with strong demand for their oversize and economy services, respectively.

Big Chill revenue and earnings were also both up, although the recovery appears slower in the food/hospitality sector, according to the business.

Freightways said the result was supported by same-customer volume growth, net market share gains, and pricing actions implemented at the start of the financial year.

The business was also able to improve its margin despite incremental IT costs on the development of a new billing platform incurred during the period.

Demand for the segment in New Zealand was more heavily focused on the business’ economy services at the expense of overnight express services.

Australia, in comparison, delivered strong growth and improved ebita performance through its Allied Express business.

Freightways’ Information Management and Waste Renewal division delivered a more mixed performance, with revenue broadly flat for the half while ebita grew modestly.

The business suggested lower digitisation activity and the exit of unprofitable Product Destruction revenue streams as potential reasons for the result.

Freightways was also hit with A$1.6m of net one-off costs in the half that are not expected to be repeated.

As for the global business, a new tariff commences on April 1, which alters the cost structure for customs clearance. This will mean shipments and mail will incur a charge, and Freightways is actively pursuing a mitigation strategy.

Freightways’ JV partner in Parcelair, Airwork, was placed into receivership in July 2025.

Receivers are currently operating the business as a going concern while a sale process is undertaken, with the expectation for this to be completed in the first quarter of 2026.

Two of Freightways’ remaining 737-400 aircraft are anticipated to be retired from its network in late 2026, and will be replaced with two 737-800s to provide a core three 737-800 network.

Outlook

Freightways said margin improvement remains a key priority for the remaining half, with cost inflation remaining moderate and the group’s cost base stabilising, particularly with respect to labour.

Back in October, Freightways faced strike action from union workers who alleged unsafe working conditions and health and safety breaches.

The business is continuing the implementation of its new billing platform for the New Zealand Express Package segment, which is expected to support improved billing capability, pricing discipline and longer-term margin outcomes.

Freightways is expecting a steady improvement in same-customer volumes in the second half, particularly in New Zealand, driven by a continued economic recovery.

The business said it remains focused on retaining customers through service quality, attracting new business and pursuing disciplined mergers and acquisitions that are directly complementary to the growing Australian express network.

Freightways announced in December 2025 that it had entered into an agreement to purchase the business and assets of VT Freight Express, a Victorian freight company.

Freightways declared an interim dividend of 21 cents per share for the half, representing a 10.5% increase on the prior corresponding period.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.