Adrad Holdings Limited (ASX: AHL) today released its financial results for the year ended 30 June 2026, reporting improved profitability and operating cash flow despite modest revenue growth. Adrad specialises in the manufacturing and distribution of heat exchange and cooling solutions for industrial, automotive, and aftermarket sectors across Australia and internationally. The company attributed these gains to an increased focus on operational efficiency, margin improvement, and cash generation initiatives throughout the Group, concluding FY26 with a robust balance sheet supporting strategic growth investments.
Revenue from continuing operations rose 1.6% to $155.5 million. Underlying EBITDA increased 10.8% to $19.5 million, with statutory EBITDA up 7.9% to $17.8 million. Underlying Net Profit After Tax (NPAT) grew 9.7% to $7.9 million, and statutory NPAT increased 15.4% to $6.5 million. Operating cash flow saw a significant 28.8% jump to $17.9 million, which supported continued investment in strategic growth initiatives.
These improved earnings reflect a comprehensive operational reset during FY26, involving leadership changes, organisational restructuring, and efficiency drives across both operating segments. The Heat Transfer Solutions segment performed strongly, bolstered by demand from power generation, data centre, and industrial infrastructure markets, alongside manufacturing improvements. The Group significantly expanded its data centre manufacturing capacity and secured notable contracts for power stations and Japanese heavy industries OEMs. Meanwhile, the Distribution segment focused on expanding product offerings and the Natrad Autocare network, partially offsetting softer traditional aftermarket conditions.
The Directors declared a fully franked final dividend of 2.56 cents per ordinary share, bringing total FY26 dividends to 4.01 cents per share, representing approximately 50% of statutory NPAT. This dividend has a record date of 21 September 2026 and will be paid on 21 October 2026. Adrad enters FY27 with an improved operational platform, expecting significant opportunities in high-growth markets for Heat Transfer Solutions and continued expansion in Distribution, forecasting a stronger first-half result compared to the prior corresponding period.
