Schaffer Corporation (SFC) H1 2026 earnings summary

Executive summary

• Statutory NPAT for 1H26 was $5.0m, down from $12.7m in 1H25, mainly due to a cyberattack at Jaguar Land Rover and challenging industry conditions in Automotive Leather and Delta.

• Revenue for 1H26 was $93.5m, down from $112.3m year-over-year, reflecting significant declines in Automotive Leather.

• Group Investments segment delivered higher profits due to increased net unrealised gains on equity investments.

• Construction of the first building at South Connect Jandakot will commence in February 2026.

• Interim fully franked dividend of $0.45 per share declared, consistent with prior periods.

Financial highlights

• Group revenue fell to $93.5m from $112.3m year-over-year.

• Statutory NPAT dropped to $5.0m from $12.7m.

• EPS declined to $0.37 from $0.94 year-over-year.

• Gross profit dropped to $15.0m from $28.7m year-over-year.

• Cash generated in 1H26 was $10.5m, down from $18.4m in 1H25.

Outlook and guidance

• 2H26 profitability expected to improve, especially in Automotive Leather as JLR recovers and new Audi programs launch.

• Delta expected to be close to break-even in 2H26, with an improving project pipeline.

• Group remains cautious due to economic uncertainties, tariffs, currency volatility, and supply chain risks.

• Group Investments may experience profit volatility due to periodic revaluations.

• Dividend of $0.45 per share, totaling $6.1m, declared post-period, payable March 2026.