Austin Engineering (ANG) H2 2026 earnings summary

Executive summary

• FY26 was challenging, with a 12.7% revenue decline to $329.0 million and EBITDA dropping to $20.4 million, mainly due to operational issues in North and South America and a loss-making OEM contract in Chile, but corrective actions and operational resets have been implemented.

• Net profit after tax (NPAT) fell to $7.6 million, down from $27.7 million, reflecting significant earnings pressure.

• Strong cash generation and disciplined working capital management increased operating cash flow to $26.7 million and reduced net debt to $5.8 million, enhancing balance sheet flexibility.

• Operational reset initiatives included contract renegotiations in Chile, management changes, productivity programs, and facility rightsizing.

• Early signs of improvement are visible, positioning the business for FY27 recovery.

Financial highlights

• Revenue: $329.0 million, down 12.7% year-over-year.

• EBITDA: $20.4 million (6.2% margin), down from $43.0 million (11.4% margin) in FY25.

• EBIT: $10.8 million (3.3% margin), down from $33.2 million (8.8% margin).

• NPAT: $7.6 million, down from $27.7 million.

• Operating cash flow: $26.7 million, up from $2.6 million year-over-year.

• Free cash flow: $19.9 million, up from -$5.7 million.

• Net debt: $5.8 million, down from $12.8 million.

Outlook and guidance

• FY27 underlying EBIT (excluding FX) expected between $17 million and $21 million.

• Margin recovery in Chile anticipated due to OEM contract reset and operational controls.

• North America targets further productivity gains and reduced outsourcing.

• APAC expected to benefit from continued bucket growth and diversified revenue.

• Focus remains on working capital discipline, cost control, and cash generation.