• Secon's recent outperformance will result in a materially higher final earn out payment
• Exact earn out amount not yet determined, but expected to be $20-25 million
• Increased earn out will not impact FY25 underlying earnings

Silk Logistics Holdings Limited (ASX:SLH) has provided an update on the performance of its wholly owned subsidiary, Secon Freight Logistics Pty Ltd (Secon), and the earn out payment that will become payable to the sellers of shares in FY26. In its HY25 results, the Company made a deferred earn out payment provision of $10.7 million for the liability represented by that part of the Secon Earn Out which is referable to Secon's EBITDA for FY25. However, due to Secon's recent outperformance, with a significant increase in uncontracted volumes in the first quarter of calendar 2025, the final Secon Earn Out Payment will be materially higher than the provision. The Company currently expects that the final Secon Earn Out Payment could be within a range of $20 million to $25 million, though the exact number cannot be determined until Secon's annual EBITDA to 30 June 2025 is known. The increased earn out payment will not impact Silk's underlying earnings for FY25. The Company will continue to monitor Secon's trading conditions and provide further updates to the market if required.