• Exiting unprofitable New Zealand operations
• Abnormal once off impact in FY25 from closure costs
• Exit from New Zealand will be earnings accretive in FY26

Adrad Holdings Limited (ASX: AHL) has announced the strategic decision to exit the company's New Zealand operations as of July 2025. The decision follows a comprehensive review by the Board and Management, aligning with the company's ongoing efforts to optimize its strategic direction and drive sustainable growth. The assessment of New Zealand found the business lacked the ability to develop into a meaningful profitable scale, due to a smaller market and level of competition. Manufacturing operations in New Zealand were closed in FY23, and this decision will close distribution in New Zealand. The exit from New Zealand is expected to result in an abnormal negative impact to FY25 Net Profit After Tax (NPAT) of approximately $0.9 million, with all associated closure costs accounted for in FY25. While the exit will decrease revenue, it will enhance overall profitability and deliver earnings accretion in FY26 of approximately $0.3M NPAT. Adrad CEO, Kevin Boyle, stated that the company's ongoing commitment to focus its resources on segments with earnings growth potential has resulted in the decision to exit the New Zealand operations, which are highly competitive with limited scale and a complex vehicle make up requiring disproportionate resources relative to the lower volume compared to Australia. The company is committed to supporting its New Zealand employees through this transition, ensuring all affected staff are looked after with appropriate care and consideration.