Waterco (WAT) investor relations material

Executive summary

• Sales revenue for HY26 ranged from $130.3m to $133.2m, down up to 2% year-over-year, but underlying EBITDA rose up to 10.9% and underlying NPAT increased up to 13.4% to $7.4m, with statutory NPAT at $6.7m.

• Profitability improved due to margin gains from Malaysian manufacturing insourcing and integration efficiencies from the Davey acquisition.

• Statutory EBIT increased up to 15.9% to $11.3m, and an interim dividend of 7 cents per share was declared.

• Growth prospects are seen in Australia and internationally through product innovation and expanded production capacity.

Financial highlights

• EBITDA grew up to 10.9% to $17.3m; underlying EBIT increased up to 14% to $12.3m; EPS from operations rose up to 15% to 21.1 cents.

• Operating cash flow was $6.5m, up from $1.3m in the prior period, with capital expenditure of $8.7m mainly for Malaysian land and machinery.

• Net working capital reached $107.4m, and NTA per share increased to $4.11.

• Interim fully franked dividend of 7 cents per share declared, payable 15 May 2026.

Outlook and guidance

• Targeting statutory EBIT growth in FY26 above FY25's $16.7m, with focus on consolidating Malaysian manufacturing, expanding global IT platform, and optimizing warehouse footprint.

• Board expects improved performance as Malaysian supply chain migration broadens and new growth opportunities in ANZ are realised.

• Cautious stance maintained on global economic environment for H2.