Kalkine: ALS (ASX:ALQ) Hits $3B Revenue in FY25, Launches $350M Equity Raise to Boost ASX200 Growth

2 min read | May 27, 2025 02:44 PM AEST | By Team Kalkine Media

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Kalkine: ALS (ASX:ALQ) Hits $3B Revenue in FY25, Launches $350M Equity Raise to Boost ASX200 Growth — Image source: Shutterstock

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Highlights

Revenue surge: ALS (ALQ) reports $3B FY25 revenue, up 16%.

Dividend stability: Final dividend of 19.7 cents per share declared.

Expansion plans: $350M equity raise to upgrade labs and fund acquisitions.

ALS Ltd (ASX:ALQ), a leading global testing and inspection company, delivered strong financial results for FY25, with revenue climbing 16% to $3 billion. Underlying earnings before interest and tax (EBIT) rose 4.7% to $515 million, showcasing resilience despite market challenges. The company’s diversified business model and strategic acquisitions, including Nuvisan and Wessling, contributed to growth, particularly in life sciences and industrial segments.

For investors eyeing ASX dividend stocks, ALS maintained a steady payout ratio of 60%, declaring a total dividend of 38.6 cents per share, 30% franked. This aligns with its commitment to shareholder returns while balancing expansion needs.

Segment-Wide Strength

The commodities division remained resilient, with minerals testing margins exceeding 31%. Meanwhile, life sciences saw organic growth, led by environmental testing (9.8%) and food sector expansion (6%). Recent acquisitions are performing ahead of expectations, with Nuvisan’s cost-saving program set to conclude earlier than planned.

$350M Equity Raise for Future Growth

ALS (ALQ) announced a $350 million equity raise, priced at $16.70 per share, to fund lab upgrades and strategic acquisitions. The proceeds will support:

Lab expansions: $230M allocated to high-capacity minerals and environmental facilities.
M&A opportunities: Focus on minerals and environmental testing sectors.
Balance sheet flexibility: Post-raise, undrawn debt capacity stands at $677M.

The initiative is expected to enhance earnings per share (EPS) once new labs become operational. With a pro forma leverage ratio of 1.7x, ALS remains well-positioned for sustained growth within the S&P/ASX200.

ALS (ALQ) continues to prioritize organic growth and bolt-on acquisitions in high-demand sectors like pharma and industrial testing. The latest financial results and equity raise underscore its strategy to capitalize on global testing demand while delivering shareholder value.

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