Dialight (DIA) Trading Update summary

Trading performance and outlook

• Demand in end markets remains soft, leading to a cautious sales outlook.

• Margin improvement, cost reduction, and higher cash generation continued in Q3, supporting strong profit delivery.

• Adjusted Operating Profit for the year ending 31 March 2026 is now expected to exceed market expectations of $8.6m EBITA.

Financial position and cash flow

• Net debt at 31 December 2025 was $10.3m, slightly up from $10.2m at 30 September, reflecting positive profit and cash generation.

• Net debt is expected to reduce further by year-end, aided by improved profit outlook and working capital reductions.

• Inventory reduced significantly to $30.7m at 31 December from $46.6m at 31 March 2025.

• Non-underlying costs for the year are expected to be about $4m, mainly related to transformation activities.

Operational updates and future plans

• Paid $5.65m to Sanmina in full settlement ahead of schedule.

• Ongoing review of further operational improvements, with additional announcements to follow as appropriate.

• Year-end results for 31 March 2026 are expected to be released in June 2026.