DXN (DXN) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 was $2.7 million, down 65.5% year-over-year due to customer-driven project delays, with significant contributions from Modular Division projects for GlobalStar and AP Telecom.

• Project activity has resumed on two of three delayed projects, with revenue expected to strengthen as deferred work is delivered.

• The company maintains a robust backlog of $14.5 million, providing revenue visibility into FY26, with 65% expected to be delivered in 2HFY26.

• Strategic expansion into Southeast Asia includes a JV in Indonesia and new entities in Singapore and Malaysia to capture regional growth opportunities.

• Data Centre Operations generated $1.3 million in revenue, and the new DCaaS division contributed $0.08 million from its first Darwin site.

Financial highlights

• Gross profit for H1 FY26 was $491k, with a gross margin of 18%, down from 30% in H1 FY25.

• Underlying EBITDA was negative $2.2 million, compared to positive $211k in H1 FY25.

• Net loss after tax widened to $3.47 million from $1.42 million year-over-year.

• Net cash outflow for H1 FY26 was $1.4 million, with cash and equivalents at $1.7 million as of period end.

• Working capital turned negative at $(5.5) million as of 31 Dec 25, compared to $3.0 million at 30 Jun 25.

Outlook and guidance

• FY26 revenue growth is targeted, weighted toward 2HFY26 as deferred projects are delivered.

• Project pipeline in DC modules, DCaaS, and data centre operations expected to generate additional revenues over the next 12–24 months.

• Management intends to refinance the $5 million iPartners loan facility to extend maturity and strengthen liquidity.

• Focus on expanding DCaaS offerings and leveraging Southeast Asia JV for growth.

• Pipeline includes 80 identified projects, with increasing opportunities in DCaaS, StructCore, Hyperscale, and Satellite gateways.