GWA Group (GWA) H1 2026 earnings summary

Executive summary

• Delivered resilient half-year results to 31 December 2025, with revenue up 2% to $214.1m and volume growth of 4.9% across Australia, New Zealand, and the UK.

• Normalised EBIT increased 2.9%, statutory EBIT up 10.8%, and NPAT rose 14.9% to $24.7m, reflecting disciplined cost management and operating leverage.

• Strategic focus on 'Customer First' and 'Profitable Volume Growth' priorities, with strong engagement in plumber and merchant channels and execution of the 'Win the Plumber' strategy.

• Interim fully franked dividend increased 6.7% to 8.0c per share, payable in March 2026, supported by robust cash generation.

• Share buyback program in progress, with $10m of a $30m program executed by December 2025.

Financial highlights

• Group revenue up 2% year-over-year to $214.1m, with volume growth of 4.9% and sales growth across all markets.

• Normalised EBIT increased 2.9%, statutory EBIT up 10.8%, and net profit after tax rose to $24.7m.

• Operating cash flow was AUD 43.6m, with a 92% cash conversion ratio; free cash flow was $20.4m.

• Interim dividend increased 6.7% to AUD 0.08 per share, fully franked.

• Basic earnings per share increased to 9.4 cents from 8.1 cents year-over-year.

Outlook and guidance

• Market conditions expected to remain mixed in H2 FY26, with targeted product launches and continued focus on strategic priorities.

• Australian residential and multi-residential segments forecasted to improve late FY26; commercial stable but office new build subdued.

• New Zealand outlook mixed; UK faces challenging construction market, with focus on affordable and social housing.

• Key assumptions include modest market growth (+1%), price increases in UK/NZ, and continued investment in digital and new business ventures.

• Directors expect continued compliance with loan covenants and stable financial position for at least 12 months after the reporting date.