Primary Exports Boom Helps Lift PGW Half-Year Earnings
Booming primary sector exports are helping lift earnings for farm service providers.
And this is underpinning solid demand across PGW's dairy-related service and supply categories, Guerin told Dairy News.
"Dairy pricing has remained supportive, providing confidence and cashflow stability for dairy farmers," he says.
"While there has been a degree of volatility within global dairy markets, milk price expectations through the period supported continujed on-farm investment in feed, fertiliser, animal health, and productivity-enhancing inputs."
The boost in dairy spending helped PGW record a 11% rise in earnings ($45.7 million) before operating interest, taxes, depreciation, and amortisation (EBITDA) for six months ending December 31, 2025.
Operating revenue topped $619.4 million, up $49m or 9%. Net profit after tax is $17.3 million - up $1.3 million or 8%. PGW declared an interim dividend of 4.5 cents per share.
Guerin says dairy farm upgrades led to good demand for its water business.
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"Farmers are upgrading water tanks and investing in technology to determine how much water they use and when and at what location," he says.
He notes that water circulation infrastructure need replacing every 15 years and some dairy farms were using the extra cash to do that.
New dairy farms coming up in the Canterbury Plains boosted demand for pivots, dairy herds and dairy replacements boosting PGW's livestock business.
Guerin says PGW had also seen growing numbers of enquiries from farmers on calf supplement products as they prepare for the coming calving season.
He says PGW is proud of the result and thanked his staff for their efforts.
Guerin says the first half was characterised by favourable commodity pricing across a number of key segments for PBW's customers.
Commenting on the outlook, Guerin expects the operating environment to continue to be predominantly positive and present both opportunities and challenges for PGW and the wider sector.
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Operating revenue topped $619.4 million, up $49m or 9%. |
"Overall conditions across agriculture remain favourable, with most parts of the sector performing well, supported by firm global demand and strong commodity pricing.
"Confidence in the rural real estate market is expected to continue, supported by stabilising dairy profitability and lower interest rates.
"Broader economic indicators are encouraging. A softer New Zealand dollar is benefitting exporters, although this is partially offset by higher imported input costs.
"Together, these trends contribute positively to farm incomes and support an optimistic outlook for the rural servicing sector."
Guerin says PGW is well placed to support its farmer and grower customers and to capture opportunities arising from the forecast export demand. He says PGW remains on track to deliver its forecast 2026 full year operating EBITDA guidanced of around $64 million.
