ALS Limited: FY26 results: earnings fine. Room to beat guidance.

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ALS Limited: FY26 results: earnings fine. Room to beat guidance.

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ALS Limited

FY26 results: earnings fine. Room to beat

guidance.

Reiterate Rating: BUY | PO: 26.00 AUD | Price: 21.83 AUD

FY26 solid; mix tailwinds support quality growth 19 May 2026

ALS (ALQ) reported FY26 underlying EBIT of $599m, broadly in line with consensus (‑1% Equity

vs BofAe, +1% vs consensus), with DPS of 42.5cps also in line. Growth quality remains

strong in our view: revenue +11% YoY (+8% organic), EBIT +19% YoY and margins

Key Changes+129bps to 18%. Commodities beat (EBIT $382m, +5% vs consensus), while Life

Sciences EBIT was light ($297m, ‑4% vs consensus). Importantly, we see increasing (A$) Previous Current

contribution from higher‑priced junior activity, with improving volume mix suggesting Price Obj. 27.00 26.00

premium pricing tailwinds should flow through into FY27. We lower FY27e EBIT -3%, 2027E Rev (m) 3,867.8 3,670.6

mostly on updated FX assumptions. We lower our price objective to A$26 (was A$27) on 2028E Rev (m) 4,229.3 4,040.8

lower earnings estimates. We reiterate our Buy rating. 2029E Rev (m) 4,462.4 4,275.9

2027E EPS 0.92 0.89

2028E EPS 1.03 1.01Guidance looks conservative; upside if macro holds

FY27 guidance implies solid but (very) achievable growth, in our view. ALQ guided to

FY27 Minerals organic revenue growth of 13-15% (15-17% in 1H27), Industrial Materials Cameron Needham >>

Research Analyst

high‑single digit and Life Sciences improved mid‑single digit. While this broadly aligns Merrill Lynch (Australia)

with consensus (c.15% Commodities revenue growth, c.5% Life Sciences), we do view +61 2 9226 5034 cameron.needham@bofa.com

guidance as slightly conservative. We think this partly reflects macro and supply chain

Lara Tufegdzic >>