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FOS Capital Targets Cost Savings and Acquisition Synergies Amid Softer 1H26 Trading

Story Highlights
  • FOS Capital flagged softer 1H26 results but expects 2H26 sales lift, cost cuts and margin gains.
  • Turnarounds at Aldridge Traffic Systems and Glowing Structures integrations are progressing, underpinning future growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
FOS Capital Targets Cost Savings and Acquisition Synergies Amid Softer 1H26 Trading

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FOS Capital Ltd ( (AU:FOS) ) just unveiled an announcement.

FOS Capital has reported softer trading for the first half of FY26, with expected sales of $12–12.2 million and EBITDA of $600,000–$700,000, down on the prior corresponding period, though modestly ahead of the second half of FY25. Despite longer lead times to secure orders, management anticipates a half-on-half sales improvement in the second half supported by a $9 million order book, $110 million quote pipeline and contributions from recent acquisitions, while a program of headcount reductions and import replacement is forecast to deliver $1.5 million in annualised cost savings and gross profit improvements from the third quarter of FY26. The turnaround of the Aldridge Traffic Systems business, acquired in June 2025, is progressing with a dedicated team now in place, $1 million of sales and orders secured, $5.5 million in active quotes, $0.7 million generated from non-core asset sales and profitability targeted by June 2026. Meanwhile, the integration of Glowing Structures, acquired in May 2025, has broadened FOS Capital’s lighting services capability and generated $2 million in orders and specifications since acquisition that are expected to support second-half sales, enhancing the group’s ability to convert design specifications into product revenue.

The most recent analyst rating on (AU:FOS) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on FOS Capital Ltd stock, see the AU:FOS Stock Forecast page.

More about FOS Capital Ltd

FOS Capital Limited is an Australia-based, founder-led manufacturer and distributor of commercial, industrial and architectural lighting solutions. The company owns 17 brands and operates two manufacturing facilities in Brisbane and Sydney, competing in a highly fragmented market where it currently holds around 5% share and is targeting 15% through a mix of organic growth and strategic acquisitions at EBITDA margins above 10%.

Average Trading Volume: 29,977

Technical Sentiment Signal: Sell

Current Market Cap: A$17.18M

For detailed information about FOS stock, go to TipRanks’ Stock Analysis page.

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