• Revenue Growth: 16% increase to $3 billion.

• Underlying EBIT Growth: 4.7% increase, 7.7% on a constant currency basis.

• EBIT Margin: 19.1% excluding recent acquisitions; overall margin declined to 17.2%.

• Minerals Margin: Maintained at approximately 31%.

• Life Sciences Organic Growth: 9.8% in Environmental sector.

• Cash Conversion: 95% of underlying EBITDA.

• Net Profit After Tax (NPAT): Declined 1.4% to $312.1 million; increased 2.8% on a constant currency basis.

• Dividend: Final dividend of $19.7 per share, 60% payout ratio.

• Commodities Revenue Growth: 0.2% increase; 2.5% on a constant currency basis.

• Industrial Materials Organic Growth: 11.3% with margin improvements.

• Life Sciences Revenue Growth: 27.4% total growth; 6.6% organic growth.

• Leverage: 2.3 times, at the upper end of the target range.

• Capital Expenditure: $165 million, 5.5% of revenue.

• Interest Expense: Approximately $82 million in FY25.

• Debt Maturity: Weighted average debt maturity of 4.7 years.

• Warning! GuruFocus has detected 10 Warning Sign with CPBLF.

Release Date: May 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ALS Ltd (CPBLF) reported strong revenue growth of 16% to $3 billion for fiscal year '25, demonstrating the strength of its diversified and resilient operating model.

• The company achieved a robust EBIT margin of 19.1% excluding recent acquisitions, aligning with its strategic plan objectives.

• Life Sciences division delivered industry-leading organic growth of 9.8% in Environmental, benefiting from increased testing demand for PFAS.

• ALS Ltd (CPBLF) maintained a strong cash conversion rate of 95% of underlying EBITDA, supporting its capital framework and growth journey.

• The company declared a final dividend of $19.7 per share, reflecting a 60% payout ratio, supported by solid performance and liquidity.

Negative Points

• The underlying EBIT margin declined to 17.2% due to dilution from recent acquisitions and cyclical pricing pressures in Minerals.

• Return on capital employed decreased to 18.9%, impacted by recent acquisitions.

• Underlying net profit after tax declined by 1.4% to $312.1 million, although it increased by 2.8% on a constant currency basis.

• The company's leverage ratio was at the upper end of its target range at 2.3 times, reflecting investment and integration activities.

• ALS Ltd (CPBLF) faces a $5 million to $10 million EBIT risk in fiscal year '26 due to changes in Mexican pharmaceutical testing regulations.

Q & A Highlights

Q: Are you expecting recovery from other regions in the minerals sector, and what is your outlook for 2026? A: Malcolm Deane, CEO: Recovery is coming from South America, Australia, and Central Asia. North America shows mixed results, with Eastern Canada performing better than Western Canada. The recovery is driven by majors and mid-tiers, with a slight increase in gold activities. It's too early to determine the full impact from juniors.