South Port New Zealand Limited - 2026 Annual Report

NZX Announcement NZX: SPN: South Port New Zealand Ltd 18 September 2026 2026 Annual Report South Port New Zealand Limited’s Annual Report for the year ended 30 June 2026 is now available on our website. You can view the Report at: https://southport-plato.netlify.app/media-and-investors/communications-centre/articles/annual-report-2026 South Port (NZX: SPN) announced a record financial result for the year ended 30 June 2026, driven by strong cargo growth, higher agricultural activity, improved New Zealand Aluminium Smelter (NZAS) throughput, and project cargo (wind farm equipment). FY26 Highlights • Bulk cargo volumes: up 9.7% to 3.3 MT; revenue per MT up 8% • Container volumes: up 18.5% to 62,000 TEU; revenue per TEU up 6% • Tiwai Wharf volumes: up 16.1% to 0.94m tonnes • Total revenue: up 14% to $71.8m from $63.3m in FY25 • EBITDA: up 16% to $29.9m from $25.8m in FY25 • EBITDA margin: up 100bps to 42% from 41% in FY25 • Record NPAT: up 21% to $16.1m from $13.3m in FY25 • Operating free cash flow: up 9% to $18.4m from $16.9m in FY25 • Debt/EBITDA: 0.6x down from 1.0x in FY25 • Dividends per share: 29.0 cps (fully imputed), payout ratio of 47% of NPAT operational performance Bulk Cargo FY26 has seen record volumes handled across the Port with bulk cargo continuing to deliver impressive growth, reflecting the positive economic activity occurring within the port’s catchment area, driven by higher agricultural activity, solid export demand, project cargo (wind farm equipment), and improved NZAS throughput. Total cargo volumes increased 11.5% to 3,963,000 tonnes (2025 – 3,553,000 tonnes), a significant uplift and a record for the Company. Containers Container volumes had remained relatively steady at around 49,000 TEUs since 2020; however, this year saw a significant uplift to 62,000 TEU, a 26.5% increase on that average. This was impacted by a strong red meat sector and increased aluminium products packed on the Island Harbour, resulting in a record 14,900 containers packed on site, a 21% or 2,600 container increase on FY25. Tiwai Wharf The NZAS volumes were up 16.1% to 0.94m tonnes (FY25: 0.81m tonnes), nearing historical levels with production continuing to recover from the 50 MW demand response call made in 2025. Financial Performance South Port’s total revenue increased 14% to $71.8m, underpinned by record volumes and project cargo (wind farm equipment), flowing through the Port. Bulk revenue grew by $4.8m to $35.1m, while container revenue also lifted by $3.2m to $17.1m supported by rate and activity increases. Tiwai revenue was up $0.42m or 8% despite a 16% increase in volumes, due to some fixed contractual components. Operating costs increased by 11% on FY25 as a result of increased labour and fuel costs, higher maintenance spend, and additional corporate overheads. Despite this, operating leverage improved on stronger volumes, resulting in a 16% rise in EBITDA to $29.9m (FY25: $25.8m) and a higher EBITDA margin of 42% (FY25: 41%). A record NPAT result, up 21% to $16.1m, reflecting the strong operational result and lower finance costs. Return on assets improved to 21.4% from 18.6%, and operating free cash flow increased by $1.5m to $18.4m (FY25: $16.9m). Gross debt remained the same at $31m, leaving headroom for future investment and reducing the debt/EBITDA ratio to 0.6x (FY25: 1.0x). Capital Management and Dividend The Board assesses South Port’s dividend flow by considering operating free cash flows (OFCF) and reported profits. OFCF is annual operating cash flow less net maintenance capital expenditure, while reported profit reflects annual profit movement plus future maintenance requirements. The Board is pleased to declare a final dividend of 20.5 cents. This translates to a full year dividend of 29.0 cents per share (2025 – 28.0 cents). Full imputation credits will be attached to all distributions. The 29.0 cent dividend represents a pay-out ratio for 2026 of 47% using reported NPAT and 41% of OFCF. The dividend payment represents a gross return of 4.8% (net 3.5%), based on a share price of $8.36 as at 30 June 2026. Outlook Whilst current market conditions make it challenging to provide a firm forecast for FY27, the Company expects trade volumes to remain broadly in-line with FY26, supported by a resilient, diversified cargo base. As we turn to FY27, the Company is however cognisant of downside risk due to the absence of project cargo (wind farm equipment) imports and as we look to invest more in our people and infrastructure. A further update will be provided at the Annual Shareholders’ Meeting (ASM) in October. South Port remains focused on disciplined investment, customer service, safety, operational efficiency, and prudent planning. With a strong asset base, ongoing master planning, and a smooth leadership transition, South Port is well positioned to continue supporting regional growth while delivering long-term value to shareholders. Derek Nind Chief Executive South Port New Zealand Limited