Strong cash generation and balance sheet improvement
Cash generated from operations of $102.6M (down 19% on lower earnings) with operating cash flow conversion of 92.1% (above PCP and a 90% target). Net debt reduced by $21.2M in the half and $70.2M over the past 12 months; net leverage declined to 1.39x, preserving covenant headroom and flexibility.
Operational milestones delivered
New Poland assembly plant commissioned and began production in the half; customer service in the U.K. materially improved (reduced order lead times and higher fill rates); SharkBite Max launched across Australia with a successful rollout; plans finalized for a Mexico manufacturing facility to augment U.S. operations.
Tariff mitigation progress
Diversification of sourcing away from China is accelerating, pricing actions have been completed and are flowing through, and cost reduction initiatives are underway. Company maintained FY '26 expected tariff EBITDA impact of $25M–$30M and now expects a residual FY '27 impact of $5M–$7M (previously targeted at 0).
Cost savings and disciplined working capital
Realized $4.4M in cost savings in the half via procurement, manufacturing efficiencies and distribution optimization; full-year cost saving target of $8M–$10M remains in place with another ~$4M–$5M expected in H2. Receivables tightened and payables extended to offset inventory build.
Product and regional growth pockets
APAC delivered +0.6% sales in local currency; Continental Europe grew underlying sales +5.7% (adjusted for prior-year Spain disposal) driven by new product launches in Germany, France and Italy.
Maintained guidance and H2 improvement trajectory
Management reiterates FY '26 external sales are expected to be broadly flat year-over-year, expects H2 external sales up mid-single digits, and anticipates EBITDA margin improvement in each region in H2 as tariff mitigation and operational actions take effect.
Shareholder returns
Declared distribution for the half totalling USD 0.04 per share (USD 0.02 interim dividend and USD 0.02 on-market buyback equivalent).
Financial results (key metrics despite headwinds)
Adjusted NPAT of $52.2M, adjusted EPS $0.067 per share, and Adjusted EBITDA of $111.4M (see lowlights for comparison to prior period).