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Close the Loop Ltd. ( (AU:CLG) ) has issued an update.
Close the Loop reported first-half FY26 revenue of $92.3 million, up 2% year on year, but saw a sharp drop in profitability, with underlying EBITDA down 23% and underlying NPATA down 61%, and operating cash flow turning more negative as net debt rose to $56.98 million. The resource recovery segment was hit by lower U.S. ITAD processing volumes, an adverse product mix and a $23.2 million impairment to ISP Tek Services’ intangibles, while packaging delivered double-digit revenue and EBITDA growth, aided by expansion with Tier-one customers and new corporate wins.
Management continued to reshape the portfolio, divesting non-core units Alliance Paper and O F Flexo, and progressing the ramp-up of the Mexicali facility to improve capacity and labour efficiency. Regionally, U.S. recycling volumes were pressured by tariff-driven uncertainty, Europe extended its multi-vendor collection program and secured new OEM contracts helped by regulatory tailwinds, and South Africa grew orders from existing and new customers without significant extra operating costs, highlighting improving operating leverage across key markets.
The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.
More about Close the Loop Ltd.
Close the Loop Limited is an ASX-listed circular economy specialist focused on resource recovery, recycling and sustainable packaging solutions. The company operates recycling programs including cartridge take-back and IT asset disposition, alongside a portfolio of packaging businesses serving domestic and international Tier-one corporate customers across the U.S., Europe, South Africa and Australia.
Average Trading Volume: 258,942
Technical Sentiment Signal: Sell
Current Market Cap: A$16.01M
See more insights into CLG stock on TipRanks’ Stock Analysis page.