NTAW (NTD) H1 2026 earnings summary

Executive summary

• Revenue from continuing operations fell 12.3% year-over-year to $225.8 million for the half-year ended 31 December 2025, mainly due to the loss of Dunlop distribution in Australia and Black Rubber store closures.

• Focus shifted from expense base adjustment to driving growth in well-positioned business units, with a strategic roadmap in development to leverage core capabilities and create new offerings.

• Substantial changes implemented since 2H2025 reset cost base, reviewed structure, and improved accountability, laying a foundation for performance reset in 1H2026.

• The group continued to reset its cost base, optimize inventory, and strengthen supplier partnerships, with multi-year agreements executed with key suppliers.

• No interim dividend was declared or paid for the period.

Financial highlights

• Gross profit margin improved to 30.3% from 29.3% year-over-year.

• Operating EBITDAI was $10.4 million, down 4.9% year-over-year.

• Net loss for the half-year was $9.7 million, a significant improvement from the $42.7 million loss in the prior period.

• Net operating cash flow was $1.5 million, up from a negative $9.7 million in the prior period.

• Net debt reduced to $50.6 million from $64.2 million at December 2024.

Outlook and guidance

• Continued focus on leveraging the reset to drive growth, with expansion of Dynamic Wheel Co. in New Zealand and targeting fleet customers for sustainable growth.

• Strategic supplier partnerships expected to enhance competitiveness and support margin improvement.

• Property consolidation and cost reductions remain priorities, with estimated long-term savings of $2 million per annum.

• No material changes expected in working capital management; financial covenants waived up to March 2026.

• Management aims to resolve Black Rubber's underperformance and expects benefits from supplier partnerships and marketing initiatives.