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Dialight (DIA) investor relations material
Dialight H1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Transformation plan focused on simplification, margin improvement, and cash generation has driven a turnaround from loss to profit over the last 18 months, with underlying operating profit for H1 2025 rising six-fold to $5.5m despite a 4.3% revenue decline.
Underlying profit and cash generation improved, enabling early settlement with Sanmina and supporting a reduction in net bank debt to $10.2m.
Transformation plan continues to deliver financial and operational benefits, with a focus on sales transformation and growth in the lighting business.
Products manufactured in Ensenada remain tariff free.
The business is halfway through its three-year transformation plan, with further improvements and growth targeted as market conditions allow.
Financial highlights
Group revenue for H1 FY26 was $86.4m, down 4.3% year-over-year, but gross margin improved by 230bps to 35.3%.
Underlying operating profit rose to $5.5m (up from $0.9m); underlying EBITDA increased to $9.6m (up from $5.2m); underlying operating cash flow was $13.9m.
Net bank debt reduced to $10.2m from $17.8m at March 2025, supported by strong cash generation and inventory reduction of $10.8m.
Non-underlying items contributed $0.4m, including a $2.9m one-off employee retention credit.
Statutory operating profit was $5.9m (vs. $19.3m loss prior year); diluted EPS was 6.8 cents (vs. loss of 45.8 cents prior year).
Outlook and guidance
Board remains confident in achieving upgraded full-year expectations, with the Transformation Plan concluding March 2026.
Focus for H2 is on accelerating sales transformation and Lighting growth, despite continued US market headwinds.
Base case forecasts margin improvement and revenue growth in FY27, with sufficient liquidity and covenant headroom.
Full benefits of the transformation plan are expected to be realized by the 2027 financial year.
Board confident in achieving recently upgraded full-year expectations.
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