NTAW (NTD) H2 2026 earnings summary

Executive summary

• FY2026 marked a reset with improved gross margin, cost base refinement, and strengthened balance sheet flexibility, addressing structural business issues and setting a sustainable platform for future growth.

• Revenue declined year-over-year due to the loss of key distribution agreements and planned exit from non-core retail outlets, but gross profit margin improved from 29% in FY2025 to 31% in FY2026, reaching 32% in 2H2026.

• Inventory was reduced significantly, and divestments of non-core assets (TLS in South Africa and Black Rubber WA) were executed or planned.

Financial highlights

• FY2026 revenue was $445.3 million, down from $528.3 million in FY2025, primarily due to discontinued distribution agreements and retail exits.

• Gross profit improved to $137.2 million (30.8% margin), up from $150.8 million (28.5% margin) in FY2025.

• Operating EBITDA increased from $10.4 million in 1H2026 to $15.0 million in 2H2026, a 45% sequential rise.

• Net loss for FY2026 was $13.6 million, a significant improvement from a $44.0 million loss in FY2025.

• Operating expenses reduced by $9.0 million year-over-year.

Outlook and guidance

• FY2027 is expected to deliver modest top-line growth, stable margins, and continued cost discipline amid subdued consumer sentiment and economic conditions in Australia, with some improvement anticipated in New Zealand.

• Focus areas include scaling Dynamic Wheel Co. NZ, expanding product ranges, and maintaining a strong working capital structure.

• Ongoing geopolitical risks and supply chain uncertainties may impact costs.