Redox (RDX) H1 2025 earnings summary

Executive summary

• Sales revenue increased 8.6% year-over-year to $632 million, driven by robust volumes despite subdued demand, with strong growth in Crop Production, Water Care, and North America Human Health & Nutrition sectors.

• Gross profit rose 1.7% to $137 million, with gross margin normalizing to 21.6% within the historical 20%-22% range.

• Statutory NPAT increased 1.6% to $40.2 million, while underlying NPATFX declined 12.9% due to normalized margins and higher costs.

• Interim dividend of 6 cents per share declared, representing a 78% payout ratio.

• Two acquisitions completed and integrated (Oleum and Auschem), expanding product range and distribution capabilities.

Financial highlights

• Revenue up 8.6% year-over-year to $631.8 million, with most growth generated organically.

• Gross profit increased 1.7% to $137 million; gross margin declined by 1.5 percentage points to 21.6%.

• Underlying EBITDAFX declined 12.9% to $62.6 million; underlying NPATFX also down 12.9% to $41 million.

• Basic EPS rose 1.7% to 7.7 cents; after-tax ROIC at 14.8%.

• Net working capital increased to $387 million, 30.7% of revenue.

Outlook and guidance

• Challenging macroeconomic and geopolitical environment expected to persist in 2H 2025, but volumes anticipated to remain above historical averages.

• Gross margins and cost overheads expected to stay within the 20%-22% historical range for the remainder of FY 2025.

• Operating costs projected to be similar in 2H 2025 as in 1H 2025.

• High confidence in sustaining current volume growth, supported by a healthy forward order book.