Nick Scali (NCK) H1 2026 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2025 increased by 7.2% to $269.3m, with ANZ revenue up 13.1% and UK revenue down due to store refurbishments; group written sales orders rose 10.7%.

• Net profit after tax increased by 36.4% to $41.0m, with underlying growth of 29% and statutory growth of 23%–37% depending on region.

• UK operations saw revenue of $17.6m, impacted by store closures for rebranding, but like-for-like sales in rebranded stores grew 32% in January.

• ANZ segment delivered strong growth, with NPAT of $46.6m and revenue up 13.1% to $251.7m.

• Interim dividend declared at 39 cents per share, fully franked.

Financial highlights

• Group gross profit margin improved to 65.4%–65.9% from 62.3%–64.4% year-over-year; ANZ margin at 65.9%, UK at 59.2%.

• ANZ written sales orders rose 10.5% to $229.8m; UK written sales orders increased 8%–12.8% to $21.7m.

• Operating cash flow before tax and lease payments was $51.5m; closing cash and equivalents at $91.6m–$91.7m, net cash $20.0m.

• EBITDA for the group was $96.6m, up from $81.8m in 1H FY25; EBIT reached $68.5m, up from $54.8m.

• Capital investments totaled $17.1m, including land acquisition and new showroom fit-outs.

Outlook and guidance

• Strong written sales in May and June expected to support a robust first quarter FY 2026; five new stores planned for 2H FY26.

• UK written sales in January were $6.7m, with like-for-like sales in converted stores up 32%; new store opportunities under negotiation.

• Margin performance expected to remain consistent into the second half barring external shocks.