Dye & Durham (DND) Q4 2025 & Q1 2026 earnings summary

Executive summary

• Preliminary unaudited FY 2025 revenue was $440.6M, down 3.7% year-over-year, with a net loss of $(82.7)M, an improvement from $(174.3)M in FY 2024, and Adjusted EBITDA of $231.3M, down 10% year-over-year.

• Q1 FY 2026 revenue was $109.4M, down 9% year-over-year, with a net loss of $(39.2)M and Adjusted EBITDA of $49.7M, down 25% year-over-year.

• A $15-20M annualized operational efficiency and cost optimization program was launched, with 60% of savings expected in FY 2026 and the remainder in FY 2027.

• The sale of Credas for $146M, expected to close by January 2026, will reduce leverage and improve liquidity.

Financial highlights

• FY 2025 revenue: $440.6M (down 3.7% year-over-year); net loss: $(82.7)M (improved from $(174.3)M); Adjusted EBITDA: $231.3M (down 10%).

• Q1 FY 2026 revenue: $109.4M (down 9% year-over-year); net loss: $(39.2)M (vs. $(9.3)M prior year); Adjusted EBITDA: $49.7M (down 25%).

• Adjusted EBITDA for Q4 FY 2025 included $11M in cumulative adjustments, $7M of which related to prior quarters.

Outlook and guidance

• FY 2026 is positioned as an investment year, with stabilization expected in the second half and a return to growth in early FY 2027.

• Transformation strategy includes operational efficiency, automation, and product rationalization, aiming for $15-20M in annualized savings by end of FY 2027.