Full Year 2025 LGI Ltd Earnings Call Transcript
Key Points
- LGI Ltd (ASX:LGI) reported a strong EBITDA growth of 14% for FY25, reaching the upper end of their guidance range.
- Operating cash flow increased by 24%, driven by strategic transactions of ACCUs and effective capital deployment.
- The company achieved a record rate of biogas recovery, energy creation, and ACCU creation, with a generator availability rate of 98%.
- LGI Ltd (ASX:LGI) expanded its operating megawatt capacity by 43%, with significant upgrades at the Canberra and Sydney sites.
- The company signed six new contracts, including a standalone battery project with WAMC, enhancing its long-term biogas rights and growth potential.
- Electricity revenue declined by 1% due to market pricing, despite an increase in volume.
- The realized electricity price was lower than in FY24, affecting revenue from the Electricity segment.
- Infrastructure construction revenue decreased as the company focused more on increasing gas flow at existing sites.
- There is uncertainty around the connection costs for new battery projects, which could impact capital expenditure.
- Potential changes in ACCU methodologies may affect future ACCU volumes, posing a risk to revenue from carbon credits.
Good morning everyone and welcome to LGI's FY25 results webinar. My name is Sam Wells from NWR, and joining me from the company today is CEO, Jarryd Doran; and CFO, Dean Wilkinson. (Event Instructions)
And with that, I'll pass it over to you, Jarryd.
Thank you very much, Sam. Well thank you for joining us this morning and between Dean and I, we're quite pleased to step you through the full year FY25 results and an update as to what the business is focused in for FY26.
We always like to just recap off anyone who is new to our business or new to our story, like who is LGI? And LGI is a domestic leader in the recovery of biogas from landfill sites and the subsequent conversion of the biogas into three main segments between our infrastructure and management stream of revenue, which is fee-based work for private landfill operators, for council landfill operators as well. We have our carbon abatement section where we derive ACCUs or Australian Carbon
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