Waterco (WAT) H2 2026 earnings summary

Executive summary

• Achieved record EBIT and net profit after tax, with EBIT up 42% and statutory NPAT up 59% year-over-year.

• Revenue grew 1.7% to $259.3 million, with international growth offsetting softer ANZ results.

• Earnings per share increased to 44.0 cents, and total dividends rose to 20 cents per share, fully franked.

• Operational integration and warehouse consolidation drove cost savings, with further benefits expected in FY27.

• International expansion advanced, with a new European partnership and resilient Middle East sales.

Financial highlights

• Revenue increased to $259.3 million, with sales revenue up 1% to $253.0 million.

• Statutory NPAT rose 59% to $15.4 million; underlying NPAT up 30% to $16.1 million.

• Underlying EBIT up 20% to $24.8 million, with EBIT margin improving to 9.4% statutory.

• Net debt increased to $31.3 million, with gearing at 20%.

• Operating cash flow decreased to $14.3 million due to higher tax paid and inventory build.

Outlook and guidance

• Focus on lifting EBIT to sales ratio through closer management of sales and margins.

• Warehouse consolidation savings expected to flow from FY27.

• International expansion, product innovation, and manufacturing capacity to support growth.

• Confident in trajectory toward improved long-term profitability, with increased final dividend.