Austin Engineering (ANG) H1 2026 earnings summary

Executive summary

• Revenue for the first half of FY 2026 was AUD 170.3 million, down 3% year-over-year, with declines in APAC and South America partially offset by growth in North America; operational inefficiencies and restructuring, especially in Chile and the US, drove earnings lower.

• Statutory net profit after tax was AUD 2 million, a significant decline from AUD 13.4 million in the prior period, with total comprehensive income at AUD 382,000.

• Free cash flow improved to AUD 3.1 million, supporting a fully franked interim dividend of AUD 0.003 per share.

• Workforce was reduced to 1,222 by December 2025 to align with activity levels and improve efficiency.

• Operational improvement plans and restructuring are underway in Chile and the US, targeting efficiency gains and cost control.

Financial highlights

• EBITDA declined 63% to AUD 8 million, and EBIT was AUD 3 million, both down sharply from the previous year.

• Net profit after tax was AUD 2 million, down 85% year-over-year; EBITDA margin fell to 4.7%.

• Free cash flow turned positive at AUD 3.1 million; net debt increased to AUD 18.2 million, with a net debt to equity ratio of 11.5%.

• Operating cash flow improved to AUD 6.6 million, an AUD 11 million turnaround from the prior year.

• Dividend payout for the period was AUD 5.6 million, fully franked.

Outlook and guidance

• Revenue guidance revised to greater than AUD 350 million for FY 2026.

• Statutory EBITDA (excluding FX) expected between AUD 14 million and AUD 16 million, with a stronger second half anticipated.

• No material items from the first half expected to repeat in the second half.

• Chile expected to return to profitability in the fourth quarter.

• Directors believe the group remains a going concern with sufficient funds to meet obligations.