Coventry Group (CYG) Q1 2027 TU earnings summary

Executive summary

• Q1 FY27 EBITDA rose for a third consecutive quarter, extending the earnings momentum established in H2 FY26.

• EBITDA reached its strongest quarterly result since Q1 FY25, supported by higher gross margin and a lower cost base.

Financial highlights

• Unaudited Q1 FY27 sales were $100.1m, up 1.3% YoY and 1.6% QoQ; pre-AASB 16 EBITDA was $5.4m, up 87% YoY and 31% QoQ.

• EBITDA improved $2.5m YoY; gross margin rose ~50 bps to 42.0%, while operating costs fell $1.5m, or 3.9%, despite inflationary pressure.

• EBITDA is normalised, pre-AASB 16 and before Significant Items; constant-currency results were used, while reported EBITDA would be ~$0.12m lower.

Outlook and guidance

• Board and management remain confident in improved FY27 financial performance; cost-out benefits are reflected in the cost base, margin initiatives are gaining traction and sales momentum continues across Australia and New Zealand.

• Gross leverage is expected to continue improving as weaker prior periods roll out of the trailing 12-month calculation.