ALS Limited Testing what matters: FY26 Result First Take

Research evidence excerpt

ALS Limited Testing what matters: FY26 Result First Take

Don Carducci AC Asia Pacific Equity Research

(61-2) 9003-8379 18 May 2026 J P M O R G A N

donald.n.carducci@jpmorgan.com

Investment Thesis, Valuation and Risks

ALS Limited (Neutral; Price Target: A$21.80)

Investment Thesis

ALS is a global laboratory testing company. We believe the company has attractive growth

prospects in the group’s Life Sciences division and potential for continued growth in the

resource-facing businesses. The company operates in a highly fragmented market and, as

such, we believe acquisitions, particularly in the Life Sciences division, will continue to be

a key source of growth. In the near term, the Commodities business continues to benefit from

elevated commodity prices, particularly across key commodities including gold and coal,

leading to further exploration and requirements for mineral testing.

Valuation

Our Mar 2027 price target of $21.80 per share is based on our blended DCF (WACC: 10.7%;

forecast period: 10 years; terminal value: assumes the company does not generate ROIC

above WACC in perpetuity) and SOTP compco valuation. Our price target is based on the

future value of our valuation, less any dividends to be paid between now and the target date.

Risks to Rating and Price Target

Upside catalysts/downside risks include:

• A return to/shift away from peak cycle Commodities margins.

• A significant recovery/deterioration in Commodities, which is the company’s most

cyclical exposure.

• An increase/decrease in margins. Competition and internal issues have led to margin

reductions in the Life Sciences business, which could continue or, alternatively, unwind.

• Given stated acquisition ambitions, and given the competitive M&A markets in Life