Rosebank Industries (ROSE) H1 2026 earnings summary

Executive summary

• Trading ahead of recently upgraded full-year expectations, with value creation and business improvement plans delivered across all three businesses, reflecting significant transformation from the inclusion of ECI, CPM, and MW Components acquisitions.

• FY 2026 profit and net debt expectations upgraded for the second time, with adjusted operating profit reaching $110 million and adjusted profit after tax of $74 million.

• Statutory results show revenue of $733 million, an operating loss of $34 million, and a loss after tax of $52 million, impacted by $144 million in adjusting items related to acquisitions, restructuring, and non-cash items.

• First shareholder dividend of 2.1 cents per share declared, payable in Sterling, with future options for USD or GBP dividends.

• Bolt-on acquisitions completed in CPM and MW Components; advanced talks ongoing in ECI.

Financial highlights

• H1 2026 revenue: $733 million; statutory operating loss: $(34) million; adjusted operating profit: $110 million.

• Adjusted profit after tax: $74 million; adjusted diluted EPS: 10.3 cents; interim dividend: 2.1 cents per share.

• Free cash flow: $88 million; adjusted free cash flow: $113 million.

• Net debt at 30 June 2026: $1,069 million, leverage at 2.4x.

• Dividend cover targeted at approximately three times adjusted full year earnings.

Outlook and guidance

• Trading ahead of current full-year expectations for adjusted operating profit and EPS, with upgraded FY 2026 market consensus: revenue $1,972 million, adjusted operating profit post-PLC costs $314 million, net debt $1,161 million.

• The Board remains confident in achieving medium-term targets and continuing the acquisition-led strategy.

• Market recovery in key segments and strong order intake support a positive outlook for the remainder of 2026.

• Clear path to doubling shareholders' investment in 3-5 years based on conservative assumptions.

• Adjusted operating margin targets (3-5 years): ECI 18%+, MW Components 21-22%, CPM 28-29%.