Bremworth (BRW) H2 2026 earnings summary

Executive summary

• Revenue increased 21% year-over-year to $106.6m, primarily driven by strong performance in the Elco Direct wool sourcing business.

• Gross margin improved by 0.7 percentage points to 13.7% year-over-year.

• Net loss after tax was $(11.4)m, including $(1.9)m in one-off items related to insurance, restructuring, and contract provisions.

• Normalised EBIT loss improved from $(15.9)m to $(9.4)m year-over-year.

• Operational reset initiatives focused on cost reduction, inventory quality, and commercial excellence.

Financial highlights

• Available cash at year-end was $22.0m, with no borrowings.

• Operating cash outflow (excluding insurance-related items) was $(9.3)m, a $14.5m improvement from the prior year.

• Year-end inventory stood at $29.1m, up from $28.0m in the previous year.

Outlook and guidance

• Focus has shifted from rebuilding to growth, with expectations of improved financial performance in FY27 as benefits from revenue and cost initiatives materialize.

• The company is positioned to benefit from a recovery in residential construction and renovation activity, with additional growth opportunities in North America and China.

• Immediate objectives are to return to profitability and positive operating cash flow while maintaining disciplined cash management.