ArborGen Holdings (ARB) H1 2026 earnings summary

Executive summary

• Record half-year sales revenue of $14.2m, up 11% year-over-year, driven by strong growth in Brazil while US South remains subdued due to market conditions.

• Net loss after tax improved to $(0.6)m, a $1.5m improvement from the prior comparative period.

• Adjusted US GAAP EBITDA was $(2.1)m, a 22% improvement year-over-year, reflecting operational efficiencies and cost control.

• Strategic focus remains on expanding advanced genetics seedling sales and operational strength in both the US and Brazil.

Financial highlights

• Sales revenue reached $14.2m for the six months ended 30 September 2025, up from $12.8m in the prior year.

• Gross profit was $3.2m, slightly up from $3.1m year-over-year.

• Net loss after tax narrowed to $(0.6)m from $(2.1)m in the prior year.

• Cash at period end was $3.6m, with net debt increasing to $30.4m, mainly due to working capital and strategic capex.

• Adjusted US GAAP EBITDA improved to $(2.1)m from $(2.7)m, excluding $0.2m in one-off items.

Outlook and guidance

• Full-year guidance maintained for year-on-year improvements in revenue and gross margin.

• FY26 Adjusted US GAAP EBITDA expected between $11m and $12m, at least 25% higher than FY25.

• Brazil expected to continue volume growth, with some short-term margin impact from excess market capacity.

• US South market conditions to remain weak until at least 2026, but focus remains on higher-value products and emerging carbon market opportunities.