Rakon (RAK) H2 2025 earnings summary

Executive summary

• FY 2025 was one of the most challenging years, with tough conditions in telecommunications and positioning markets, but a disciplined focus on cost reduction and strategic growth initiatives positioned the business for recovery.

• Underlying EBITDA reached NZD 9.5 million, at the midpoint of guidance, with a significant second-half turnaround driven by cost reductions and improved order volumes.

• Record Aerospace and Defense revenue grew 15% year-on-year, with positive momentum into FY26.

• Second-half FY25 revenue surged 49% over the first half, driving a strong turnaround and positive trajectory for FY26.

• Lean cost base, strong balance sheet, and high R&D capitalization supported resilience.

Financial highlights

• FY 2025 revenue was NZD 104 million, down 19% year-on-year, with 60% of revenue delivered in the second half.

• Underlying EBITDA was NZD 9.5 million, falling 29% year-on-year but improving by NZD 16.8 million in 2H25.

• Net profit after tax was NZD 5.8 million, including NZD 3.6 million in one-off costs; net loss after tax of NZD 5.8 million reported in another source.

• Operating expenses, excluding one-offs, fell 10% year-on-year to NZD 51.4 million; inventory reduced by NZD 8.5 million, improving cash flow.

• Debt increased to NZD 12.4 million to fund manufacturing capacity expansion.

Outlook and guidance

• Strong order pipeline and positive sector trends underpin targeted year-on-year growth in Aerospace & Defense and significant FY26 revenue for AI & Cloud.

• Telco orders stabilized in the second half of FY 2025, with an upward trend expected as 5G investments resume.

• Continued focus on cost efficiency and R&D investment to extend technology leadership.

• No material macroeconomic impact expected for FY26 due to diversified manufacturing footprint.

• Full FY 2026 profit and loss guidance to be provided at the annual shareholder meeting in August.