Adrad Holdings Limited (ASX: AHL), a manufacturer and distributor of heat exchange products, has announced its financial results for the year ended 30 June 2026, showcasing improved profitability and operating cash flow. The company’s intensified focus on operational efficiency, margin improvement, and cash generation initiatives throughout FY26 contributed to strengthened earnings across the Group, despite experiencing modest revenue growth. Adrad concluded the financial year with a robust balance sheet, providing ample capacity for ongoing investment in strategic growth initiatives.
For FY26, revenue from continuing operations saw a slight increase of 1.6% to $155.5 million. This modest growth was accompanied by significant earnings improvements, with underlying EBITDA rising 10.8% to $19.5 million and statutory EBITDA increasing 7.9% to $17.8 million. Underlying Net Profit After Tax (NPAT) grew by 9.7% to $7.9 million, while statutory NPAT saw a substantial 15.4% increase to $6.5 million. Furthermore, operating cash flow experienced a robust 28.8% uplift, reaching $17.9 million, which supported strategic investments and disciplined capital allocation.
These positive financial outcomes are attributed to a comprehensive operational reset undertaken during the year, including leadership changes, organisational restructuring, and efficiency drives across both operating segments. The Heat Transfer Solutions segment demonstrated improved performance, buoyed by consistent demand from power generation, data centre, and industrial infrastructure markets, alongside enhanced manufacturing efficiencies. The company also declared a fully franked final dividend of 2.56 cents per ordinary share, bringing the total dividends for FY26 to 4.01 cents per share, representing approximately 50% of statutory NPAT. The Group enters FY27 with an improved operational platform and expects a stronger first half result.
