Table of Contents
What changed
Revenue rose 20.2% to NZ$3,662.1m and reported EBITDAF rose 11.6% to NZ$454.3m (normalised EBITDAF +14% to NZ$470.4m). PBT grew 19.3% to NZ$227.9m, but NPAT grew faster at 29.0% to NZ$169.1m, with the gap explained by a lower effective tax rate (25.8% vs 31.4%).
The cash picture moved the other way. Operating cash flow fell 29.1% to NZ$311.7m, cash on hand dropped to NZ$81.0m from NZ$192.8m, and gross borrowings rose 10.6% to NZ$1,489.8m. Inventory expanded 163.4% to NZ$230.5m, lifting inventory days from around 10.5 to 23.0. Total equity grew 11.1% to NZ$2,975.9m. Total dividends per share edged up to 14.3 cps (final: 7.17 cps) from 14.0 cps.
What matters
- Cash conversion deteriorated materially. OCF/EBITDAF dropped from 108.0% to 68.6%, and pre-lease free cash flow fell to NZ$191.0m from NZ$288.1m despite capex being lower (NZ$120.7m vs NZ$151.7m). The deterioration sits in working capital, not investment.
- Leverage is drifting the wrong way. Net debt rose to ~NZ$1,408.8m and net debt/EBITDAF moved from 2.8x to 3.1x. The dividend was still covered by pre-lease FCF (payout ratio 41% of FCF), but the margin of cover has tightened sharply from 26% a year earlier.
- Earnings quality read cleaner on PBT than NPAT. The 9.7pp gap between NPAT growth (29.0%) and PBT growth (19.3%) is tax-driven rather than operational. PBT growth of 19.3% on revenue growth of 20.2% implies roughly flat pre-tax margin performance, not an acceleration.
Expectations
No formal FY26 target or quantified forward work was disclosed in the supplied material, so there is no company benchmark to test this result against. On shape, HY25 contributed NZ$1,761.2m of revenue and NZ$70.3m of NPAT, implying a second-half skew of around NZ$1,900.9m revenue and NZ$98.8m NPAT. That second-half weighting is consistent with prior seasonality for the group but offers no forward guidance by itself. Normalised EBITDAF of NZ$470.4m is the figure management is directing readers toward, but the supplied excerpts do not include a full reconciliation bridge between reported and normalised EBITDAF.
Quality of result
A meaningful portion of the reported earnings uplift is not durable on its own terms. The 29% NPAT growth embeds roughly 5.6 percentage points of effective-tax-rate tailwind; stripping that out, PBT growth of 19.3% is the cleaner operating read and is broadly in line with revenue growth rather than ahead of it. Gross margin in dollar terms rose 12% to NZ$863.5m but fell as a percentage of revenue (23.6% vs 25.3%), indicating lower-quality revenue mix at the top line.
The cash result is weaker than the P&L implies. The NZ$143.0m inventory build is the single largest swing in working capital and is the proximate cause of the NZ$128.1m decline in operating cash flow. Until that inventory unwinds into revenue or is written down, the FY25 earnings print is partly balance-sheet-assisted.
Unresolved
- What is driving the 163% jump in inventory to NZ$230.5m, and is this fuel stockbuild, emissions units, or something else that will reverse in FY26?
- What accounts for the drop in effective tax rate from 31.4% to 25.8%, and is it repeatable?
- What is in the NZ$16.1m gap between reported EBITDAF (NZ$454.3m) and normalised EBITDAF (NZ$470.4m)?
- How does management view the 3.1x net debt/EBITDAF ratio against its internal capital-structure tolerance, given the dividend was held rather than rebased?
This briefing cannot assess management commentary on outlook, hedge book positioning, or segment-level performance, as none of that detail was provided in the supplied extraction.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $3.7m | $3.0m | +20.2% ↑ |
| Net profit after tax | $0.2m | $0.1m | +29.0% ↑ |
| Net cash inflow from operating activities | $0.3m | $0.4m | -29.1% ↓ |
| Final dividend per share | 7.2c | 7.0c | +2.4% ↑ |
| EBITDAF | $0.5m | $0.4m | +11.6% ↑ |
| Operating profit | $0.3m | $0.3m | +11.8% ↑ |
| Profit before tax | $0.2m | $0.2m | +19.3% ↑ |
| Cash and cash equivalents | $0.1m | $0.2m | -58.0% ↓ |
| Total assets | $6.1m | $5.6m | +8.2% ↑ |
Reference: annolyse.ai/briefings/gne-fy25
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +19.3% | — | cleaner earnings measure |
| Effective tax rate | 25.8% | 31.4% | — |
| OCF / EBITDAF (cash conversion) | 68.6% | 108.0% | deteriorated |
| FCF pre-lease | $191.0m | $288.1m | −$97.1m |
| FCF post-lease | $191.0m | $288.1m | −$97.1m |
| FCF / NPAT | 112.9% | 219.7% | complementary conversion metric |
| Capex % revenue | 3.3% | 5.0% | — |
| Capex | $0.1m | −$151.7m | +$151.8m |
| Debtor days | 12.6 | 17.5 | -4.9 days |
| Inventory days | 23.0 | 10.5 | +12.5 days |
| Operating working capital | $357.4m | $233.7m | +$123.7m absorbed |
| Trade debtors | $0.1m | $146.2m | −$146.1m |
| Net debt | $1408.8m | $1153.8m | +$255.0m |
| Net debt / EBITDAF | 3.10x | 2.80x | Weakening |
| Gross borrowings | $1.5m | $1346.6m | −$1345.1m |
| Payout ratio vs NPAT | 46.3% | — | — |
| Payout ratio vs FCF pre-lease | 41.0% | — | covered |
| ROE (annualised) | 5.7% | 4.9% | Strengthening |
| HY25 share of FY25 revenue | 48.1% | — | Other half was 51.9% |
| HY25 share of FY25 NPAT | 41.6% | — | Other half was 58.4% |
| Profit from continuing operations | $0.2m | $131.1m | −$130.9m |
Reference: annolyse.ai/briefings/gne-fy25
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.