Rakon (RAK) H1 2026 earnings summary

Executive summary

• Revenue increased 30% year-over-year to $54.2m for H1 FY2026, with gross margin up 11 percentage points to 48.8%.

• Underlying EBITDA rose 149% to $3.6m, turning positive from a prior loss, and net loss after tax narrowed to $3.0m.

• All core segments—Aerospace & Defence, Telecom, AI & Data Centres, and Positioning—delivered strong growth.

• Operating expenses remained flat year-over-year, representing 54.6% of revenue, down 17.6 percentage points.

• Successfully executed on a strategic roadmap focused on three growth engines: Aerospace & Defence, AI & Data Centres, and Next-Gen Telecom.

Financial highlights

• Revenue reached $54.2m (+30% YoY); gross profit rose to $26.5m (+69% YoY); gross margin improved to 48.8% (+11ppt YoY).

• Underlying EBITDA improved to $3.6m (+149% YoY); net profit after tax loss narrowed to $3.0m, a $7.4m improvement YoY.

• Operating expenses were $29.6m (-1% YoY); capital expenditure was $7.9m (+14% YoY).

• Cash and cash equivalents at period end were $12.4m, down from $15.8m a year ago.

• Net cash from operating activities was $6.4m, down from $8.3m last year.

Outlook and guidance

• Full-year underlying EBITDA guidance remains at $15–24m, with significant uplift expected in H2 due to seasonality and program timing.

• Revenue guidance for FY2026 is around $130m, with strong order book momentum.

• Aerospace & Defence expected to continue YoY growth, supported by a record $75m+ backlog.

• AI & Data Centre segment to report significant revenue as a separate market segment in FY26.

• Transition to a market-based structure with two global business units is underway, expected to impact future segment reporting.