LGI Limited FY26 Results: Biogas, ACCUs, and Electricity Output Rise, But Cash Flow Dips

LGI Limited (ASX:LGI) reported FY26 revenue from ordinary activities up 17.7% to AUD 43.3 million, with statutory EBITDA rising 25.5% to AUD 21.8 million. The company generated 140,841 MWh of electricity, up 29.1%, and created 584,191 Australian Carbon Credit Units, an 18.4% increase. These gains reflect higher biogas recovery, which climbed 33.3% to 170.2 million cubic metres across 37 contracted projects in Queensland, New South Wales, and the ACT. However, operating cash flow fell 31.4% to AUD 8.5 million, while investing outflows reached AUD 25.0 million. The gap between earnings and cash flow stems from heavy capital expenditure on new carbon-abatement sites and generation equipment. LGI switched on eight carbon-abatement sites during FY26 and secured three more, so future cash conversion depends on how quickly these assets start generating revenue. Investors should watch new site commissioning, power output, ACCU issuance, net revenue, and operating cash conversion. The company reported 97% generation fleet availability, but regulatory changes to ACCU eligibility or certificate pricing could affect revenue without changing gas volumes. Distinguishing actual commissioned capacity from planned development is key.