Data#3 (DTL) H1 2026 earnings summary

Executive summary

• Record gross sales of AUD 1.54 billion for H1 FY 2026, up 9.2% year-over-year, with sustainable profit growth and strong performance in managed services, infrastructure, and software solutions.

• Profit before tax rose 4.5% to AUD 33.5 million; basic EPS increased 3.6% to 14.95 cents; interim fully franked dividend of 13.50 cents per share declared, payout ratio 90.3%.

• Recurring business steady at 70%, supported by multi-year subscriptions and as-a-service offerings; customer satisfaction remained high at 4.33/5.

• AI adoption is driving operational efficiencies, faster solution delivery, and measurable impacts on cost and customer service.

• Multiple industry awards received, including Microsoft Country Partner of the Year, HP Australia Services Partner of the Year, and Cisco ANZ/Global Partner awards.

Financial highlights

• Gross profit was AUD 144 million, up 0.3% year-over-year; average gross margin declined to 9.3% from 10.2% due to Microsoft incentive changes.

• EBIT increased over 6% year-over-year to AUD 27.6 million; EBITDA rose 5.7% to AUD 30.9 million, with an EBITDA margin of 7.3%.

• Statutory revenue up over 8% to AUD 423 million; operating expenses down 1% due to cost control and non-recurring lease adjustment.

• Cash balance at Dec 31, 2025 was AUD 125.4 million; average daily cash balance up 12% to AUD 347 million.

• Net cash outflow from operating activities of AUD 204.3 million in H1, reflecting timing of customer collections.

Outlook and guidance

• Software Solutions expected to return to gross profit growth in H2 FY 2026, with full-year contribution consistent with FY 2025.

• High single-digit gross profit growth (7%-9%) targeted for FY 2026, with stronger H2 performance anticipated.

• Managed services and infrastructure expected to maintain growth; services sales growth forecast at low to mid single digits for the full year.

• No specific FY 2026 earnings guidance provided; earnings skewed to H2; strategy focuses on sustainable earnings growth and operational excellence.

• Anticipates increased demand for network infrastructure and data centre solutions in H2 FY 2026, with AI adoption as a key growth driver.