SDI (SDI) H1 2026 earnings summary

Executive summary

• Revenue increased by 2.7% to $52.9 million for the half-year ended 31 December 2025 compared to the prior corresponding period, driven by growth in Australian direct exports and the Middle Eastern market, but offset by a decline in Amalgam product sales.

• Net profit after tax (NPAT) decreased by 15.2% to $3.25 million, impacted by a $0.7 million doubtful debt provision; normalised NPAT (excluding this provision) was down 2.0% to $3.75 million.

• Gross product margin improved by 210 basis points to 65.6%, reflecting operational efficiencies, product/geographical mix, and favourable currency movements.

• EBITDA declined by 9.4% to $7.8 million, and earnings per share fell by 15.2% to 2.73 cents.

Financial highlights

• Sales: $52.9 million, up 2.7% year-over-year.

• Gross profit: $34.7 million, up from $32.7 million year-over-year.

• EBITDA: $7.8 million, down 9.4% from $8.6 million.

• NPAT: $3.25 million, down 15.2% from $3.83 million.

• Operating expenses (excluding doubtful debt): $28.9 million, up 3.9% year-over-year.

• Tax expense decreased to 24.6% from 29.4% due to a prior year adjustment.

Outlook and guidance

• Focus remains on Aesthetics and Whitening products for new product development.

• Manufacturing and logistics efficiencies targeted, with relocation of operations planned by December 2027 and construction to commence in April 2026.

• Continued investment in automation, R&D, and meeting European regulatory requirements.

• Commitment to ESG initiatives, including establishing a sustainability risk framework.