Freightways outpaces flat NZ economy with 12.9% profit lift

Logistics and courier company Freightways outperformed the flat New Zealand economy, with net profit for the year up 12.9% to $80.1 million.

Monday, August 18th 2025, 5:33PM

by BusinessDesk

The NZX-listed firm, which operates brands like New Zealand Couriers, Big Chill and Allied Express, reported its results for the 2025 financial year to the NZX on Monday.

As chief executive, Mark Troughear said in the annual report: “Even in tough economic conditions, we’ve retained customers and continued to attract new ones, reflecting our consistent service delivery.”

Freightways noted that GDP figures for NZ had contracted in the year to March, whereas its revenue for the 2025 year was up 6.6% to $1.3 billion.

The Australian economy was more buoyant, the company said, with more than a third of its revenue and profits now coming from across the Tasman.

Freightways made its biggest play in the Australian market when it acquired Allied Express for A$160m (NZ$175.7m) in cash and shares in 2022.

Modest improvement in volumes

Express package volumes were up just 0.4% in NZ compared to the previous comparable period, whereas Australian volumes were up 11.6%.

In a joint statement, Troughear and Freightways chair Mark Cairns said the company expected further volume increases as economic conditions improved.

“Whilst NZ’s long-awaited recovery has been delayed for longer than anticipated, we have seen a modest improvement in volume over the last 6 months and would expect this to build some momentum in FY26,” the pair said.

In light of the result, the Freightways board declared a final dividend of 21 cents per share, taking the full-year dividend to 40 cps, up 8% on the previous year.

The payout, which will be made on Oct 1, equates to around $37.5m.

Bolstering margins

Looking forward, Freightways said it would be focused on improving margins, among other things.

The company said in the two years post-covid, it experienced significant labour cost increases, with truck driver wages rising by around 20%.

“Our strategy over FY25 and FY26 is to reclaim this lost margin through efficiency gains and pricing adjustments,” Troughear and Cairns said.

The company has made a number of capital investments in recent years to optimise its networks and boost efficiency, including Allied Express adding automated sorting systems at its New South Wales and Victoria depots, and Big Chill opening a new distribution facility in New Plymouth.

In a presentation to investors, Freightways said it was exploring further acquisition opportunities, with the Australian market a particular focus area.

Air freight partner in receivership

Freightways is a 50/50 joint partner with Airwork Holdings in ParcelAir, a company that provides air freight services for Freightways.

As BusinessDesk reported, Airwork was tipped into receivership in early July.

“The receivers have announced an intention for Airwork to continue to trade as a going concern,” Freightways said in its annual report.

“Freightways will continue to closely monitor the situation with Airwork and, if necessary, has a contingency plan which can be implemented on short notice and with minimal operational impact.”

Earlier this year, Troughear detailed aspects of this contingency plan to BusinessDesk, noting Freightways had already brought in an extra 737-800 from Texel.

“We have a good relationship with them, so if we needed another aircraft or two at short notice, there are people like Texel, and there are other suppliers out there as well that would have aircraft available,” he said at the time.

Tags: Market Close