Redox (RDX) H2 2025 earnings summary

Executive summary

• Sales revenue increased 9.4% year-over-year to $1.244b, driven by strong volume growth and three acquisitions (Oleum, Auschem, Molekulis), despite subdued customer demand and a challenging global chemical distribution environment.

• Gross profit rose 1.0% to $269 million, with gross margin at 21.6%, within the long-term range.

• The company maintained a net cash position of $124 million and zero net debt, declaring a total dividend of $0.125 per share with an 85% payout ratio.

• Sales team expanded by 7.2% to 194 members to support organic growth and new customer wins.

Financial highlights

• Underlying EBITDAFX was $122 million, down 12.5% year-over-year; underlying NPATEX was $80 million, down 15.6%.

• Gross margin declined by 1.8ppts to 21.6%, within the historical range of 20%-22%.

• Conversion margin stood at 45.3%, comparable to major industry peers but down 7.0ppts year-over-year.

• Net working capital increased to $407 million (32.7% of sales), above the historical range.

• After-tax ROIC declined 4.3 points to 14.8%, with a long-term target of 17%-18%.

Outlook and guidance

• Management expects macroeconomic and geopolitical headwinds to persist into FY 2026 but anticipates improvement, with hopes for a favorable inflation tailwind.

• July 2025 sales and volumes were up 13% year-over-year, indicating a strong start to FY 2026.

• Focus remains on organic growth, product portfolio expansion, and strategic acquisitions in ANZ/US.

• Well-financed position and asset-light model support continued M&A and investment.