DGL Group Limited (DGL) H2 2025 earnings summary

Executive summary

• FY25 revenue increased by 4% year-over-year to $481.5 million, driven by strong crop protection demand, chemical formulation, and acquisitions.

• Underlying EBITDA performance was mixed: one source reports a 52.1% decline, another a 20% increase to $44.7 million, while another notes a 19% decrease to $52.1 million; underlying NPAT fell sharply to $3.5 million, mainly due to lead recycling losses and higher costs.

• Statutory net loss after tax was $24.6 million, impacted by $28–28.1 million in non-recurring items, including goodwill and asset write-downs.

• Strong operating cash flow and cash conversion at 110%, with no dividends declared as earnings are reinvested for growth.

• FY25 marked a transitional year with mixed financial performance and earnings below expectations.

Financial highlights

• Revenue rose to $481.5 million (+4% vs pcp), with $16 million contributed by acquisitions.

• Underlying NPAT was $3.5 million, down $12.2 million year-over-year and 78% lower than prior year.

• Gross margin improved to $203.9 million, aided by acquisitions and crop protection demand.

• Operating cash flow reached $44.7 million (+20% vs pcp), with cash conversion at 110%.

• Net debt reduced to $94.6 million as of 30 June 2025.

Outlook and guidance

• FY26 is expected to benefit from cost reductions, business closures, integration of acquisitions, and new capacity.

• Substantial reduction in administration expenses anticipated as shared services and ERP integration complete.

• Continued investment in growth, plant, equipment, and selective acquisitions.

• Macroeconomic uncertainties remain, but diversified operations and new systems expected to support growth.