DXN (DXN) H2 2025 earnings summary

Executive summary

• Revenue increased by 49% year-over-year to $16.0 million, driven by strong Modular Division performance and new contract wins, including a $5.7 million East Micronesia Cable System project and contracts with DP World Australia and Globalstar Inc.

• Gross profit declined 7.9% to $5.4 million due to project cost variations and the expiration of a distribution agreement, resulting in a net loss after tax of $2.31 million, similar to the prior year.

• EBITDA dropped to $5,769 from $643,944, while Underlying EBITDA (adjusted for non-cash and non-operating items) was $814,526, reflecting operational focus amid transitional challenges.

• The company established a new Data Centre as a Service (DCaaS) division, securing its first $3.6 million contract over five years, expected to deliver recurring revenue.

• Cash at year-end was $3.1 million, and net tangible assets per ordinary security improved to 0.67 cents.

Financial highlights

• Revenue: $16,028,458, up 49% year-over-year.

• Gross profit: $5,392,165, down 7.9% year-over-year.

• Net loss after tax: $2,314,248 (FY24: $2,303,165).

• EBITDA: $5,769 (down from $643,944 in FY24); Underlying EBITDA: $814,526.

• Cash and cash equivalents: $3,119,895 at year-end.

• Net tangible assets per share: 0.67 cents (FY24: -1.84 cents).

Outlook and guidance

• Entering FY26 with a strong pipeline, including $12 million in backlog across all divisions.

• Focus on cost reductions, supply chain enhancements, and growth in DCaaS recurring revenue.

• Targeting expansion in APAC, leveraging demand for edge data centres, AI, and subsea cable deployments.