New Zealand logistics company Freightways is looking to Australia for expansion after identifying greater economic opportunities across the ditch.

Freightways is no stranger to the Australian logistics landscape. It became an ASX-listed company in late 2023 after purchasing 100 per cent of the shares in Australian company Allied Express in 2022 for $160 million.

In its HY25 Results report published to the ASX earlier this week, Freightways praised the performance of Allied Express in the Australian market, with a 7.6 per cent organic and new business growth emerging as a positive from a difficult HY for the overall company.

Freightways believes its Australian operations have a “good pipeline of new business prospects for the remainder of FY25”.

Three targeted horizons of growth have been listed by Freightways for the remainder of FY25, which includes the establishment of new lines of business through the assessment of bolt-on merger and acquisition opportunities in Australia in the express package and mail space – specifically in the overweight and bulky deliveries sector.

Overall, Freightways has reported an AU$41.4 million increase to its operating revenue and an AU$44.7 million increase to its net profit after tax in HY25 when compared to HY24, which are increases of 6.7 per cent and 9.5 per cent respectively.

Other Australian businesses under the Freightways banner include Shred-X, TIMG and LitSupport, all of which operate in the information management and waste renewal sectors.

“Despite the markets in which Freightways operate remaining challenging over the first half of FY25, the company recorded positive revenue and earnings growth,” Chairman Mark Cairns and CEO Mark Trougher say.

“In NZ, the depressed economic environment meant same-customer volumes have continued to decline, impacting both our express courier and temperature-controlled businesses.

“Australia was more positive but still well short of the type of organic growth we have seen in better times.

“In Australia, Allied Express continued their momentum with a meaningful eight per cent increase in volume and with extra items they also experienced the efficiency benefits of the new automation in both Sydney and Melbourne.

“Freightways is well positioned to take advantage of the opportunities that are in front of us with loyal customers, high-performing businesses, disciplined balance sheet management as well as experienced and adaptable customer-focused teams.

“Our focus continue to be on restoring margins in FY25 and FY26 as expected modest organic growth returns.”