Schaffer Corporation (SFC) H1 2026 earnings summary

Executive summary

• Statutory NPAT for 1H26 was $5.0m, down from $12.7m in 1H25, mainly due to a cyberattack at a major customer and tough industry conditions in Delta.

• Revenue for the half-year ended 31 December 2025 was $93.5m, down from $112.3m in the prior period, reflecting a significant decline in sales, particularly in Automotive Leather due to a cyberattack at Jaguar Land Rover.

• Group Investments segment delivered higher profits due to increased net unrealised gains on equity investments.

• Interim fully franked dividend of $0.45 per share declared, consistent with prior periods.

Financial highlights

• Group revenue fell by $18.8m year-over-year to $93.5m.

• Gross profit dropped to $15.0m from $28.7m year-over-year.

• Statutory NPAT dropped by $7.7m to $5.0m.

• Cash generated in 1H26 was $10.5m, down from $18.4m in 1H25.

• Basic and diluted EPS were 36.7¢, compared to 93.8¢ in the prior period.

Outlook and guidance

• 2H26 profitability expected to improve, especially in Automotive Leather as JLR recovers and new Audi programs launch.

• Automotive Leather sales volumes with Jaguar Land Rover have returned to normal run-rates following the cyberattack disruption.

• Delta expected to be close to break-even in 2H26, with an improving project pipeline.

• Group remains cautious due to economic uncertainties, tariffs, currency volatility, and supply chain risks.