ALS Ltd. (ALQ.AX): First Take: A step in the right direction, retain Buy

Research evidence excerpt

ALS Ltd. (ALQ.AX): First Take: A step in the right direction, retain Buy

Equity Research

28 July 2026 | 10:33AM AEST

Net/Net. The update suggests improving momentum with the Commodities business, Niraj Shah

+61(2)9320-1369 | niraj.shah@gs.com

directionally consistent with our view and better than the outlook provided in May. Goldman Sachs Australia Pty Ltd

Management raised group organic revenue guidance from MSD-HSD% to HSD% organic Sophie Yu

growth (GSe +10.5%) with the key delta being an ongoing acceleration in activity +61(3)9679-1076Goldman Sachs Australia| sophie.x.yu@gs.comPty Ltd

associated with junior miner exploration activity. As a result, Minerals organic revenue Alex Nosatti

growth is tracking above the previously guided 1H27 15-17% range, noting that this +61(2)9321-8342Goldman Sachs Australia| alex.nosatti@gs.comPty Ltd

makes up the bulk of the Commodities business. While Commodities margin guidance was

unchanged (sequentially stable in 1H, 30-50bps higher in the 2H), ALS highlighted an

improved pricing environment and junior acceleration (positive mix). On the other hand, Life

Sciences appears to be improving vs 2H26, but tracking below MSD targets.

Key Takeaways:

n Group. ALQ said it is on track to deliver HSD organic growth in FY27e, which

compares with prior guidance of MSD-HSD% growth and GSe of +10.5%.

Management stated it is on track for similar margin expansion to FY26 (+129bps

underlying) consistent with GSe of +130bps.

n Commodities. Minerals 1H27 organic revenue growth is running above the

previously guided 15-17% range. ALQ stated that major and mid-tier clients have

continued at similar heightened sample volumes experienced in 2H26, while

junior miner sample volumes have accelerated. ALQ also noted an improved

pricing environment.