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Freightways, a key indicator of New Zealand’s economic health, reported a 17.2% increase in net profit to $52.5 million for the first half of the financial year ending December 31, 2025, according to company filings. The result, up from $44.7 million in the prior corresponding period, reflects a broader recovery in the New Zealand economy, though challenges remain in certain sectors.
Revenue also rose, climbing 8.5% to $718.1 million, with earnings before interest, tax and amortisation (ebita) increasing by 12.2% to $96.5 million. Freightways attributed the positive performance to growth in same-customer volumes, gains in market share, and pricing adjustments implemented at the start of the financial year.
The company’s Express Package and Business Mail division was a key driver of growth, delivering improvements in revenue, ebita, and margin. Within this division, Allied and Post Haste performed particularly well, benefiting from strong demand for oversize and economy services, respectively. Big Chill Distribution, serving the food and hospitality sectors, also saw revenue and earnings increases, although the pace of recovery in that sector is slower, the company noted.
Freightways’ Australian operations, specifically Allied Express, also contributed to the positive results, demonstrating strong growth and improved ebita performance. Yet, demand within New Zealand shifted towards economy services, at the expense of overnight express deliveries.
The Information Management and Waste Renewal division presented a more mixed picture, with revenue remaining broadly flat. EBITA in this division grew modestly, a result the company linked to lower digitisation activity and the discontinuation of unprofitable product destruction services.
Despite the overall positive results, Freightways incurred A$1.6 million in one-off costs during the half, which the company does not anticipate repeating. Looking ahead, a new tariff scheduled to take effect on April 1 will alter the cost structure for customs clearance, requiring a charge on shipments and mail. Freightways is currently developing a mitigation strategy to address this change.
The company also faces challenges related to its air freight operations. Its joint venture partner in Parcelair, Airwork, entered receivership in July 2025. Receivers are currently managing the business with the aim of finding a buyer, with a sale expected in the first quarter of 2026. Freightways plans to retire two of its 737-400 aircraft in late 2026, replacing them with two 737-800s to maintain a core fleet of three 737-800s.
Freightways declared an interim dividend of 21 cents per share, a 10.5% increase compared to the previous year. The company is continuing to implement a new billing platform for its New Zealand Express Package segment, aiming to improve billing capabilities, pricing discipline, and long-term margins.
Amova Asset Management portfolio manager Michael De Cesare described the results as “broadly in line with expectations,” noting that the double-digit profit growth reflected steady execution in a challenging freight environment. He also pointed out that margins remain below pre-COVID levels but are expected to be a medium-term driver for the business. De Cesare highlighted Big Chill and the document destruction business, Shred-X, as areas requiring attention.
In December 2025, Freightways agreed to acquire VT Freight Express, a Victorian freight company, signaling a continued focus on expanding its Australian express network. The company anticipates a steady improvement in same-customer volumes in the second half of the financial year, driven by the ongoing economic recovery in New Zealand.
Back in October, Freightways faced strike action from union workers alleging unsafe working conditions and health and safety breaches.