• Revenue up 6% to $77.9m, with growth in both business segments
• EBITDA down 16.9% to $8.2m due to increased costs
• Interim dividend of 1.40 cents per share declared

Adrad Holdings Limited reported a 6% increase in revenue to $77.9m for the first half of FY25, with growth in both the Heat Transfer Solutions (HTS) and Distribution segments. However, pro forma EBITDA decreased by 16.9% to $8.2m due to several factors, including increased materials and consumable costs, higher employee costs, increased doubtful debt provisions, foreign exchange losses, and higher insurance costs. In response, the company has adjusted selling prices, renegotiated a significant OEM contract, implemented a freight cost reduction program, and deployed more active foreign currency exposure management. The company also continues to rationalise and optimise manufacturing across Australian sites and shift operations to its Thailand facility. Overall, profit for the consolidated entity after tax amounted to $2.8m, down from $3.1m in the prior corresponding period. The company generated positive cash flow of $10.1m from operations. The HTS segment delivered revenue growth of 7.1% to $43.6m, but EBITDA declined 3.0% to $6.5m due to the increased costs. The Distribution segment grew revenue by 4.6% to $34.3m, but EBITDA declined 19.6% to $4.1m due to the cost pressures. The company has appointed a new Head of IT and strengthened the People and Culture team to focus on occupational health and safety. The company expects initiatives implemented and continued development during the second half of FY25 to improve the revenue outlook in both business segments.

The company expects initiatives implemented and continued development during the second half of FY25 to improve the revenue outlook in both business segments. The company has a strong order book particularly in data centre backup power generation and will initiate new industrial service and maintenance contracts in 2HFY25 in the rail and power generation sectors.