MOVE Logistics Achieves Positive Earnings Target as Transformation Boosts Transport Business Performance

Positive Normalised Earnings Achieved Amid Economic Challenges

MOVE Logistics fulfilled its commitment to shareholders by delivering positive normalised earnings before tax for the year ended 30 June 2026, marking a crucial milestone for the transport and logistics group. This accomplishment is notable given the company’s acknowledgment that FY26 was characterized by an unpredictable economy and fierce competition in the freight and logistics sector. The company emphasized that achieving revenue growth alongside positive earnings is a significant feat in such a challenging environment.

CEO Paul Millward stated that MOVE is now "a leaner, more capable organisation with a cost base and network better aligned to market conditions and well positioned for the next phase of growth." The attainment of this earnings target confirms that foundational transformation efforts during the Reset phase of the New Horizons roadmap, which began in June 2024, have established the structural base required for sustainable value creation. While the timing and pace of economic recovery remain uncertain, the positive normalised earnings demonstrate MOVE’s successful implementation of operational and cost improvements to achieve profitability independent of broader economic factors.

Three Divisions Profit in FY26 as Freight & Fuel Turnaround Strengthens

During FY26, three of MOVE’s four business divisions generated profitable earnings, reflecting widespread operational improvements. The Freight & Fuel division, which has undergone a major turnaround in the current transformation cycle, achieved revenue growth that translated into positive earnings contribution for the year. This marks a key operational success, as Freight & Fuel was a focal point of MOVE’s restructuring efforts and is now delivering positive financial returns.

The Specialist division also posted strong year-on-year earnings growth, driven by large projects initiated in the second half of FY26. The International division saw a significant earnings uplift year-on-year, with MOVE’s Oceans operation meeting expectations. Conversely, the Warehousing division remains below management’s expectations. MOVE confirmed that structural cost reductions within Warehousing have been implemented, shifting management’s focus to aggressive top-line growth strategies aimed at restoring profitability. The company’s ability to generate profits across three divisions while addressing Warehousing’s challenges highlights a more balanced and resilient business model than before the New Horizons transformation.

Revenue Expansion and Enhanced Gross Margins Support Financial Gains

The update confirms MOVE experienced revenue growth throughout FY26, with momentum strengthening as the year progressed. This growth is particularly notable given the volatile economic conditions and intense competitive pressures faced during the period. Additionally, MOVE reported improvements in both gross margin dollars and percentages, indicating enhanced profitability in its core freight and logistics operations through a combination of revenue growth and cost management.

The simultaneous increase in gross margin dollars and percentage reflects MOVE’s success in optimizing its cost base and pricing strategies. This dual improvement signifies that revenue growth is not compromising margin quality but rather delivering higher-margin sales. Together, rising revenue and expanding gross margins demonstrate that the New Horizons transformation is effectively driving operational efficiency and aligning costs with market realities.

Borrowings Reduced and Free Cashflow Returns to Positive Territory

During FY26, MOVE reduced its borrowings and improved its net debt position, reflecting disciplined capital management amid its transformation. The company also returned to positive free cashflow generation, a critical milestone indicating operational improvements are yielding actual cash rather than just accounting gains. Positive cashflow enhances MOVE’s financial flexibility to invest in growth while decreasing dependence on external financing.

This improved capital position and cashflow are expected to be further supported by a new BNZ invoice finance facility commencing November 2026. MOVE stated the facility will reduce ongoing finance costs and help optimize working capital management. The combination of stronger operational cashflow and this new financing arrangement should provide MOVE with greater financial flexibility and lower costs as it advances through the Step-Up phase. The company continues to manage capital expenditure prudently, aligning investments with strategic growth while maintaining balance sheet strength.

Transitioning from Reset to Step-Up Phase of New Horizons Roadmap

Since June 2024, MOVE’s four-year New Horizons roadmap has progressed from the Reset phase into the Step-Up phase, marking a key shift in its transformation strategy. The Reset phase focused on foundational activities such as cost structure optimization, network realignment, and operational reorganization. With these foundational tasks largely complete, as evidenced by achieving positive normalised earnings, the Step-Up phase now prioritizes accelerating commercial growth.

This strategic progression reflects MOVE’s approach to first establish a cost-efficient operating platform before driving revenue expansion. CEO Paul Millward noted that "the focus has moved from foundational transformation to accelerating commercial growth," signaling management’s emphasis on revenue and market share growth alongside ongoing cost discipline. The Step-Up phase positions MOVE to deliver sustainable value by leveraging its improved cost structure to capture opportunities and expand its market presence within New Zealand’s domestic freight and logistics sector.

Warehousing Division Remains Focus Despite Structural Cost Measures

Although three divisions achieved profitability in FY26, the Warehousing division continues to underperform relative to management’s expectations. The company acknowledged that Warehousing "remains challenging" and below target. However, MOVE has completed significant structural cost reductions in this division, indicating major cost restructuring efforts are now behind them.

With cost improvements in place, management’s strategic focus for Warehousing has shifted to aggressive top-line growth initiatives aimed at restoring profitability. This approach recognizes that further cost cuts alone are insufficient and that revenue growth is essential to leverage the improved cost structure. Investors will closely watch the timing and effectiveness of these growth strategies, as Warehousing’s return to profitability is crucial for balanced earnings growth across all four segments.

Economic and Competitive Factors Influence FY26 Results

MOVE’s FY26 results were achieved amid a challenging environment marked by economic volatility and intense competition. The company explicitly noted that "FY26 has been marked by an inconsistent economy and intense competition," providing important context for its positive earnings and revenue growth. New Zealand’s domestic freight and logistics sector faced demand fluctuations and pricing pressures due to uncertain economic activity and competitive dynamics.

Despite these challenges, MOVE grew revenue and achieved profitability, underscoring the effectiveness of its transformation in building a competitive, profitable business model under adverse conditions. CEO Paul Millward emphasized that "delivering an increase in revenue alongside positive earnings (NEBT) represents an important achievement," highlighting that success stems from structural business improvements rather than reliance on economic tailwinds. The company’s cautious outlook on economic recovery timing reflects a focus on strategic execution rather than dependence on external factors.

Investor Call and Audited FY26 Results Scheduled for August 2026

MOVE will release its full audited FY26 results and conduct an investor call on 25 August 2026, offering shareholders and market participants comprehensive financial details and management insights on performance and strategy. This event marks a key milestone following the preliminary unaudited update, providing deeper analysis of divisional results, capital allocation, and strategic priorities.

The timing of the audited results and investor call, about a month after the preliminary update, allows investors to prepare questions regarding divisional earnings, working capital, capital expenditures, and Warehousing turnaround efforts. Details of the investor call are available via the NZX announcements platform, enabling shareholders to engage with MOVE’s financial disclosures and outlook.