Rakon (RAK) H1 2026 earnings summary

Executive summary

• Achieved 30% year-over-year revenue growth to $54.2m for the six months ended 30 September 2025, with broad-based gains across all major markets, especially Aerospace & Defence, Telecom, and AI & Data Centre segments.

• Gross margin increased by 11 percentage points to 48.8%, driven by scale, product mix, and cost efficiencies from India operations.

• Underlying EBITDA rose 149% year-over-year to $3.6m, reflecting strong operating leverage and disciplined cost management.

• Net loss after tax narrowed to $3.0m from $10.4m in the prior year, reflecting improved gross profit and lower operating loss.

• Maintained flat OpEx while scaling production and expanding global manufacturing footprint, with opex as a percentage of revenue down 17.6ppt YoY.

Financial highlights

• Revenue: $54.2m (+30% YoY); Gross profit: $26.5m (+69% YoY); Gross margin: 48.8% (+11ppt YoY).

• Underlying EBITDA: $3.6m (+149% YoY); Net loss after tax: ($3.0m), a $7.4m improvement YoY.

• Operating expenses: $29.6m (-1% YoY); Capital expenditure: $7.9m (+14% YoY).

• Cash and cash equivalents: $12.4m (-22% from Mar-25); Inventory: $56.6m (+10% from Mar-25).

• Operating cash flow: $6.4m (down 23% YoY); EPS improved to (1.3) cents from (4.6) cents.

Outlook and guidance

• FY26 Underlying EBITDA guidance reaffirmed at $15m–$24m, with earnings expected to be weighted toward 2H26 due to seasonality and program delivery timing.

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

• Growth anticipated across all major segments, led by Aerospace & Defence, AI & Data Centre, and Telecom.

• Operational efficiencies and manufacturing scale-up in India and France expected to further expand margins.

• Long-term targets: $250m revenue and $75m Underlying EBITDA by FY30.