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>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.

<ul><li>Freightways (FRW) reported a solid FY25 result, delivering on its margin recovery promise, helped by positive volume momentum and pricing initiatives that exceeded cost inflation.</li><li>Volume growth is strongest at Allied Express but still pleasing in New Zealand, with emerging cyclical green shoots.</li><li>The margin recovery theme will likely continue through FY26, with similar drivers in play but with greater emphasis on operating leverage.</li></ul>

Freightways (FRW) reported a solid FY25 result, delivering on its margin recovery promise, helped by positive volume momentum and pricing initiatives that exceeded cost inflation.Volume growth is strongest at Allied Express but still pleasing in New Zealand, with emerging cyclical green shoots.The margin recovery theme will likely continue through FY26, with similar drivers in play but with greater emphasis on operating leverage.

Freightways FY25—Growth Being Delivered

<ul><li>Freightways (FRW) will likely report a solid FY25 result on 18 August 2025.</li><li>We forecast EBITA growth of +7% against the prior year, driven by pricing gains, new customer wins, and volume growth in its Australian Allied Express business—more than offsetting same-customer volume declines in New Zealand.</li><li>Moderating cost inflation is allowing for gross margin recovery, though temporary Project Evolve costs and an adverse mix will likely have tempered overall margin development in FY25.</li></ul>

Freightways (FRW) will likely report a solid FY25 result on 18 August 2025.We forecast EBITA growth of +7% against the prior year, driven by pricing gains, new customer wins, and volume growth in its Australian Allied Express business—more than offsetting same-customer volume declines in New Zealand.Moderating cost inflation is allowing for gross margin recovery, though temporary Project Evolve costs and an adverse mix will likely have tempered overall margin development in FY25.

Freightways FY25 Preview—Profit Pick-Up

<ul><li>Freightways (FRW) reported a robust 1H25 result, more than offsetting depressed domestic demand with new customer wins and pricing initiatives.</li><li>EBITA grew +7% year-on-year, driven by (1) revenue growth at a similar level, (2) margin recovery in domestic parcels, and (3) margin expansion at Allied Express.</li><li>These drivers were partially offset by temporary cost headwinds from Project Evolve, an aircraft fleet transition provision, and Shred-X worker compensation. </li></ul>

Freightways (FRW) reported a robust 1H25 result, more than offsetting depressed domestic demand with new customer wins and pricing initiatives.EBITA grew +7% year-on-year, driven by (1) revenue growth at a similar level, (2) margin recovery in domestic parcels, and (3) margin expansion at Allied Express.These drivers were partially offset by temporary cost headwinds from Project Evolve, an aircraft fleet transition provision, and Shred-X worker compensation. 

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 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

Freightways FY25—Growth Being Delivered

Freightways (FRW) reported a solid FY25 result, delivering on its margin recovery promise, helped by positive volume momentum and pricing...

Forsyth Barr

Freightways FY25 Preview—Profit Pick-Up

Freightways (FRW) will likely report a solid FY25 result on 18 August 2025.We forecast EBITA growth of +7% against the prior year, driven by...

Forsyth Barr

Freightways - 1H25—Delivering Growth

Freightways (FRW) reported a robust 1H25 result, more than offsetting depressed domestic demand with new customer wins and pricing initiatives.

Forsyth Barr

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