Waterco (WAT) investor relations material

Executive summary

• Sales revenue for HY26 was $130.3m, down 2% year-over-year, while statutory NPAT rose 13% to $6.7m, driven by margin gains from Malaysian manufacturing insourcing and Davey integration.

• Statutory EBIT increased 15.9% to $11.3m, and underlying EBITDA rose 10% to $18.3m.

• Interim dividend of 7 cents per share declared, payable 15 May 2026.

Financial highlights

• Underlying EBIT increased 14% to $12.3m, and underlying EPS rose 12% to 21.1 cents.

• EBITDA grew 10.9% to $17.3m; EPS from operations increased 15% to 19.2 cents per share.

• Operating cash flow was $6.5m, up from $1.3m in the prior period, with capital expenditure of $8.7m mainly for Malaysian land and machinery.

• Net working capital reached $107.4m, and NTA per share increased to $4.11.

Outlook and guidance

• Targeting statutory EBIT growth in FY26 above FY25's $16.7m, with focus on consolidating Malaysian manufacturing, expanding global IT platform, and optimizing warehouse footprint.

• Refinancing of debt with Westpac approved, providing longer-term funding and expected reclassification of borrowings as non-current in FY26.

• Cautious stance maintained on global economic environment for H2.