ALS Ltd delivers $3 billion revenue in FY25, unveils $350 million equity raise

ALS Ltd has posted robust full-year results for the 2025 financial year, with underlying revenue (EBITDA) up 16% to $3 billion, while launching a $350 million equity raise to expand lab capacity and pursue growth opportunities in its core testing markets.

The global testing, inspection and certification (TIC) company delivered full-year underlying earnings before interest and tax (EBIT) of $515 million, up 4.7% year-on-year. Underlying EBIT margin was 19.1% excluding recent acquisitions, and 17.2% when including its Nuvisan, York and Wessling deals. On a constant currency basis, underlying EBIT was $529.8 million, up 7.7%.

Free cash flow conversion remained robust at 95%, with the company generating $591 million in cash, a $68 million improvement over the prior year.

While underlying net profit after taxes (NPAT) declined by 1.4% to $312.1 million, on a constant currency basis it grew 2.8% to $325.3 million. Statutory NPAT surged 1,886% to $256.2 million, due to the prior year’s one-off Nuvisan impairment.

The result highlights the “strength of the diversified and resilient business model”, the company said, adding that integration of acquisitions was progressing well, particularly in life sciences.

ALS declared a total dividend of 38.6 cents per share, 30% franked, maintaining a 60% payout ratio. This includes a final dividend of 19.7 cents per share.

Management reiterated a focus on bolt-on acquisitions and organic expansion, particularly across high-growth areas such as environmental, pharma, food, and industrial testing.

Segment momentum

ALS’ commodities division delivered a resilient performance despite subdued market conditions. Its minerals business maintained margins above 31%, with mine site expansion revenue growing 24% year-on-year. Industrial materials posted 11.3% organic growth and expanded margins by around 140 basis points.

In life sciences, organic revenue growth was led by environmental testing at 9.8%, with the food division also contributing 6% organic growth. Recent acquisitions Wessling and Nuvisan are ahead of plan, and the company expects to complete Nuvisan’s cost-out strategy six months early.

Equity raise to fund capacity and acquisitions

Alongside its earnings update, ALS announced the launch of a $350 million equity raise via a fully underwritten institutional placement, priced at $16.70 per share – a 5.3% discount to the last traded price of $17.64 and a 5.7% discount to the five-day volume weighted average price. This represents about 4.3% of ALS’ issued capital.

An accompanying non-underwritten share purchase plan (SPP) will allow eligible shareholders to subscribe for up to $30,000 in new shares, with a target raise of up to $40 million.

Proceeds will fund:

• $230 million in organic investment to upgrade four major laboratories nearing capacity in minerals and environmental divisions;
• Ongoing M&A activity, particularly in minerals and environmental segments; and
• General balance sheet flexibility and transaction costs.

ALS expects this infrastructure investment to be mid-single digit EPS accretive on a pro forma FY25 basis once labs are fully operational. Further EPS accretion is expected as additional growth investments are deployed.

Post-raise, ALS will have $677 million in undrawn bank capacity and a 1.7x pro forma leverage ratio, dropping to 2.1x after lab investments.