Dialight (DIA) H2 2025 earnings summary

Executive summary

• Returned to profitability after a period of financial pressure, supported by transformation plan benefits.

• Management team revised and strengthened; bank facility extended.

• Sanmina litigation settled, funded from working capital.

• Positive trading in early FY26, with optimism for future prospects.

Financial highlights

• FY25 revenue $183.5m, up from $182.1m in FY24.

• Adjusted underlying EBITDA $10.7m (FY24: $9.1m); underlying operating profit $4.2m (FY24: $1.9m loss).

• Cash generated by operations $12.4m; inventory reduced by $2.6m.

• Gross margin improved to 35.6% from 31.5% year-over-year.

• Non-underlying costs totaled $21.6m, mainly from Sanmina settlement and transformation project.

Outlook and guidance

• Confident in further progress for FY26, with additional benefit from a one-off Covid-19 IRS credit.

• Transformation plan's fifth pillar expected to drive substantial financial impact in FY26 and beyond.

• Maintaining FY26 guidance despite tariff-related macroeconomic impacts.

• Medium-term ambitions: 3–5% revenue growth, 45% gross margin, 15% EBITDA margin, eliminate net bank debt.