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An update from DGL Group Limited ( (AU:DGL) ) is now available.
DGL Group reported H1 FY26 sales revenue of $225.2 million, down 5.8%, and underlying EBITDA of $24.7 million, down 5.0%, as stronger manufacturing and logistics activity was offset by weaker environmental revenues and higher costs. Statutory net loss widened to $12.8 million due to non-cash asset write-downs and one-off audit costs, while operating cash flow fell with conversion dropping to 72% amid increased working capital.
Despite softer earnings, DGL reduced net debt to $78.2 million and maintained a strong balance sheet, while implementing cost controls, management simplification, and business unit consolidation to improve performance. A full half-year audit by new auditor BDO, following a prior disclaimer of opinion, clears a key hurdle for the planned reinstatement of the company’s ASX quotation, addressing a major concern for shareholders.
Strategically, DGL is prioritising organic growth by expanding warehouse capacity, rationalising its transport fleet, and divesting non-core or loss-making assets, including the Laverton lead acid battery recycling plant and two New South Wales properties. Investment in a new Christchurch warehousing facility and the delayed but progressing Unanderra liquid waste treatment plant is expected to enhance capacity, unlock new revenue streams such as plastic packaging recycling, and contribute to earnings from FY27.
The company is also advancing group-wide systems consolidation, having completed implementation of a HR and payroll platform and targeting completion of a new ERP and logistics management system by the end of FY26. These initiatives are expected to deliver cost savings, productivity gains, better management information, and improved customer service, bolstering DGL’s competitive positioning in the chemical logistics sector.
The most recent analyst rating on (AU:DGL) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on DGL Group Limited stock, see the AU:DGL Stock Forecast page.
More about DGL Group Limited
DGL Group Limited is a leading provider of specialised chemical logistics and services to essential industries across Australia and New Zealand. The company offers end-to-end solutions covering sourcing, manufacturing, storage, transport, sampling, recycling, and disposal of chemicals, with a focus on manufacturing, logistics, and environmental services supported by targeted international operations.
Technical Sentiment Signal: Buy
Current Market Cap: A$152.6M
See more insights into DGL stock on TipRanks’ Stock Analysis page.