S&P/ASX All Ords Index (ASX: XAO) shares are in the red on Friday, down 0.35%.
Among the flounderers today are truck operator Lindsay Australia Ltd (ASX: LAU) and telecommunications and digital services company Spark New Zealand Ltd (ASX: SPK).
Let's find out why.
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What's driving major falls in these 2 ASX All Ords shares?
Spark New Zealand shares crash amid 80% profit drop
Investors are hitting the sell button on Spark New Zealand shares after the company released its 1H FY25 results today.
The ASX All Ords communications share crashed 22% to a 52-week low of $2.06 per share on Friday before partially recovering to $2.12 at the time of writing.
Spark blamed "a recessionary environment" for a 77.7% fall in its reported net profit after tax (NPAT) to $35 million.
Significant contributors were lower earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and higher depreciation and amortisation costs.
Reported revenue was 1.9% lower at $1,939 million.
The company said weakness in its mobile and IT services divisions and the continued decline of legacy voice was partially offset by growth in mobile devices, cloud, data centres, and IoT.
Spark's reported EBITDAI fell 20.9% to $419 million.
When adjusted for $29 million in non-recurring costs of the operating model transformation, adjusted EBITDAI fell 15.5% to $448 million, and adjusted net profit after tax (NPAT) fell 64.3% to $56 million.
Spark has reduced its FY25 EBITDAI guidance to a range of $1,040 million to $1,100 million.
The guidance downgrade was mainly due to lower revenue in its enterprise and government division as clients reduced spending and cut their mobile fleets. Changes in Spark's product mix and "aggressive price competition in mobile" have also affected the earnings outlook.
Spark maintained capex guidance of about $415 million to $435 million.
The ASX All Ords share is still expected to pay a full-year FY25 dividend of 25 NZ cents per share (75% franked). The interim dividend is 14.15 NZ cents.
Spark said "decisive action" was being taken to improve performance. It noted that it's looking for a capital partner to co-invest in its data centre growth strategy.
Lindsay Australia shares driven 18% lower
Integrated transport, logistics, and rural supply operator, Lindsay Australia is also having a rotten day on the market today.
The ASX All Ords industrial share dived 18% to a 52-week low of 69 cents on Friday before edging back up to 70 cents at the time of writing.
Lindsay also released its 1H FY25 report today.
The company described "challenging trading conditions" as it revealed a 19.6% decline in underlying NPAT to $15.8 million.
Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 9.2% to $47.3 million while operating revenue increased 3.6% to $432.8 million.
The company said trading conditions were difficult during the half due to a softer economy, intensifying competition, weather disruptions, and increased servicing and operating costs.
Despite this, Lindsay noted that its rural division delivered an outstanding performance during the half.
The rural division's underlying EBITDA grew by 13.3% due to improved margins and higher sales.
The ASX All Ords industrial share will pay a fully franked interim dividend of 2.3 cents per share, up 9.5% from last year.
