Dicker Data (DDR) investor relations material

Executive summary

• Gross revenue for H1 FY26 reached $2,100.9 million, up 14.2% year-over-year, driven by technology refresh cycles, AI infrastructure investment, and strong software and cybersecurity demand.

• EBITDA increased 37.3% to $103.5 million, and net operating profit before tax rose over 50% to $86.4 million, reflecting improved margins and operating leverage.

• Net profit after tax was $60.7 million, up 54.1% year-over-year, with earnings per share at 33.5 cents, up 53.5%.

• Australian operations delivered robust growth, offsetting softer New Zealand performance.

Financial highlights

• Gross profit margin expanded to 9.8%, aided by strategic inventory purchases ahead of price rises.

• Operating expenses as a percentage of revenue declined to 5.9%, reflecting improved operating leverage.

• Net debt decreased to $291.3 million, with debt to equity improved to 0.98x.

• Fully franked dividends paid in H1 FY26 were 23.0 cents per share, up 4.5% year-over-year.

• Inventory increased by over $100 million, supporting margin gains and strong June sales.

Outlook and guidance

• FY26 gross revenue guidance is $4.3–$4.4 billion, representing 11–14% growth.

• Net operating profit before tax guidance is $162–$165 million, with a PBT margin of approximately 3.8%.

• Continued strong demand expected in software, cybersecurity, data management, and AI-enabled infrastructure.

• Higher inventory costs and reduced unit demand anticipated in H2 due to supply chain constraints and pricing impacts.

• Gross margin expected to moderate to mid-9% range in 2027, with AI deal size a key variable.