New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>The icing has been partially removed from Freightways’ (FRW) proverbial profit cake for FY26, with fuel costs eating into an otherwise robust year of earnings growth.</li><li>Nonetheless, we continue to expect EBITA growth to accelerate through 2H26 given the first-time consolidation of newly acquired VTFE.</li><li>Our base case assumes a resolution to the fuel crisis over the coming months and a return to modest volume growth through FY27.</li></ul>

The icing has been partially removed from Freightways’ (FRW) proverbial profit cake for FY26, with fuel costs eating into an otherwise robust year of earnings growth.Nonetheless, we continue to expect EBITA growth to accelerate through 2H26 given the first-time consolidation of newly acquired VTFE.Our base case assumes a resolution to the fuel crisis over the coming months and a return to modest volume growth through FY27.

Freightways A Little Less Icing, Still Plenty of Cake

<ul><li>Freightways (FRW) reported a strong 1H26 result, largely in line with expectations, with nothing to change its current growth trajectory.</li><li>EBITA grew +12% to NZ$95.9m but should accelerate during 2H26 given: (1) a steady economic recovery in NZ, benefiting same-customer volumes; (2) the first-time inclusion of recently acquired VTFE from February 2026; and (3) margin initiatives at Shred-X coming to fruition.</li><li>The medium-term growth outlook for FRW remains attractive and could be supplemented by further accretive M&amp;A.</li></ul>

Freightways (FRW) reported a strong 1H26 result, largely in line with expectations, with nothing to change its current growth trajectory.EBITA grew +12% to NZ$95.9m but should accelerate during 2H26 given: (1) a steady economic recovery in NZ, benefiting same-customer volumes; (2) the first-time inclusion of recently acquired VTFE from February 2026; and (3) margin initiatives at Shred-X coming to fruition.The medium-term growth outlook for FRW remains attractive and could be supplemented by further accretive M&amp;A.

Freightways 1H26—Gradually Picking Up Speed

<ul><li>We expect Freightways (FRW) to report a strong 1H26 result on 16 February 2026.</li><li>We forecast EBITA growth of +14% on the prior year, driven by a combination of volume gains, price increases, and margin expansion, partially offset by adverse mix.</li><li>FRW reported 1Q26 EBITA up +12% on the prior year; we expect a sustained domestic economic recovery to have provided a further tailwind through 2Q26.</li></ul>

We expect Freightways (FRW) to report a strong 1H26 result on 16 February 2026.We forecast EBITA growth of +14% on the prior year, driven by a combination of volume gains, price increases, and margin expansion, partially offset by adverse mix.FRW reported 1Q26 EBITA up +12% on the prior year; we expect a sustained domestic economic recovery to have provided a further tailwind through 2Q26.

Freightways 1H26 Preview—Trucking Along Nicely

<ul><li>Freightways’ (FRW) first-quarter trading update highlights a business that is: (1) benefiting from the early stages of a cyclical recovery in New Zealand; (2) continuing to grow share through customer wins; and (3) investing to pursue further growth opportunities.</li><li>1Q26 EBITA grew strongly, up +12% on the prior year, driven primarily by Express Package operations, which delivered a combination of volume growth, price realisation, and operating leverage.</li><li>The near-term outlook is positive, with scope for an acceleration in earnings growth through the remainder of FY26.</li></ul>

Freightways’ (FRW) first-quarter trading update highlights a business that is: (1) benefiting from the early stages of a cyclical recovery in New Zealand; (2) continuing to grow share through customer wins; and (3) investing to pursue further growth opportunities.1Q26 EBITA grew strongly, up +12% on the prior year, driven primarily by Express Package operations, which delivered a combination of volume growth, price realisation, and operating leverage.The near-term outlook is positive, with scope for an acceleration in earnings growth through the remainder of FY26.

<ul><li>Freightways (FRW) has been one of the most acquisitive companies on the NZX over the past 20 years, yet its acquisition strategy has only recently started to add meaningful value as it has pursued larger deals within adjacent growth sectors.</li><li>We retain a NEUTRAL rating but recognise the attraction of value-add potential from future M&amp;A.</li><li>Its pipeline of potential opportunities is long (we suspect it includes parts of TGE, Hunter Express, ACN Delivers, Kings, and Capital Transport), according to management, but deals are usually subject to a willing buyer and a willing seller.</li></ul>

Freightways (FRW) has been one of the most acquisitive companies on the NZX over the past 20 years, yet its acquisition strategy has only recently started to add meaningful value as it has pursued larger deals within adjacent growth sectors.We retain a NEUTRAL rating but recognise the attraction of value-add potential from future M&amp;A.Its pipeline of potential opportunities is long (we suspect it includes parts of TGE, Hunter Express, ACN Delivers, Kings, and Capital Transport), according to management, but deals are usually subject to a willing buyer and a willing seller.

New Zealand

Freightways Limited provides express package services throughout New Zealand along with providing information management and business mail services.  The Company's courier services includes same day and overnight national and international deliveries, freight forwarding services, computer media transport and payroll data deliveries.

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Freightways Ltd (FRE NZ)

Freightways A Little Less Icing, Still Plenty of Cake

The icing has been partially removed from Freightways’ (FRW) proverbial profit cake for FY26, with fuel costs eating into an otherwise robust year...

Forsyth Barr

Freightways 1H26—Gradually Picking Up Speed

Freightways (FRW) reported a strong 1H26 result, largely in line with expectations, with nothing to change its current growth trajectory.

Forsyth Barr

Freightways 1H26 Preview—Trucking Along Nicely

We forecast EBITA growth of +14% on the prior year, driven by a combination of volume gains, price increases, and margin expansion, partially...

Forsyth Barr

Freightways Redelivering Strong Growth

1Q26 EBITA grew strongly, up +12% on the prior year, driven primarily by Express Package operations, which delivered a combination of volume...

Forsyth Barr

Freightways A Truckload Of M&A

Its pipeline of potential opportunities is long (we suspect it includes parts of TGE, Hunter Express, ACN Delivers, Kings, and Capital Transport),...

Forsyth Barr

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