NTAW (NTD) H2 2025 earnings summary

Executive summary

• Achieved a significant turnaround in 2H2025 after underperformance in FY2024 and 1H2025, driven by new leadership and operational changes focused on inventory, cash generation, and cost reduction.

• Leadership changes, including a new CEO and Managing Director, accelerated transformation and set a foundation for FY2026 growth.

• The business reset included aggressive cost management, branch rationalization, and enhanced leadership.

• Board and management confident that a solid foundation is set for continued improvement in FY2026.

Financial highlights

• FY2025 revenue was $522.6 million, with 2H2025 revenue at $260.1 million, down 1% from 1H2025.

• Operating EBITDA for FY2025 was $30.3 million, with $19.7 million generated in 2H2025, up 86.6% from 1H2025.

• Net debt reduced by $24 million (down 37%) in 2H2025; inventory reduced by $30 million (18.8%).

• Cash holdings increased to $47.0 million at June 2025, with strong operating cash flow of $27.1 million for FY2025.

• Reported a net loss after tax of $44.0 million for FY2025, including a $39.2 million non-cash impairment charge in 1H2025.

Outlook and guidance

• FY2026 revenue will reflect the cessation of Dunlop distribution in Australia; excluding this, conservative sales growth is forecast amid subdued consumer sentiment and low economic growth.

• Focus on growing core wholesale brands, organic growth in Carter's Tyre Service, and efficiency gains at Black Rubber.

• Continued focus on cost discipline, inventory management, and supplier partnerships to drive efficiency and market share.

• Further debt reduction and potential exit from South Africa operations planned.