• Resource Recovery revenue and EBITDA higher in Q1 FY26
• Packaging revenue and EBITDA improved versus prior period
• Completed divestment of non-core businesses as part of strategic review

Close the Loop Limited (ASX: CLG), the circular economy industry leader, has released its trading update for the first quarter (Q1) of the financial year ending 30 June 2026 (FY26). The key highlights include improved performance in the Resource Recovery and Packaging divisions, as well as the completion of divestments of non-core businesses as part of the Group's ongoing strategic review and restructuring program. In the Resource Recovery segment, recycling revenue and EBITDA, excluding the ITAD contribution, were higher in Q1 FY26 compared to the prior corresponding period. ITAD revenue and EBITDA also improved in Q1 FY26 compared to the last quarter of the 2025 financial year, driven by the introduction of new product lines, headcount rationalisation, increased volumes, and margin improvement through enhanced cost controls. In the Packaging division, revenue and EBITDA improved versus the prior corresponding period, underpinned by stronger South African and Australian performance. The company has also exited loss-making operations during FY26. The divestment of Alliance Paper and O F Flexo were completed during the year to date as part of the Group's ongoing strategic review and restructuring program, supporting a more focused operating model and allowing management to concentrate resources on core businesses. The board is currently undertaking a review process for replacement Non-Executive Directors, and the Chief Financial Officer, Chris Dimitriadis, has decided to step down from his position, with his last day on the 19th of December 2025.

The Group's performance improved during Q1 FY26, driven by a resilient Packaging division and a turnaround in profitability in Resource Recovery. Implementation of the five strategic objectives established in August 2025 is well underway and yielding the benefits the board had originally envisioned. Under the supervision of the new management team, the Group has the structure and personnel to continue improving operating performance. While the positive momentum in the first quarter marks an encouraging start to FY26, management remains focused on sustaining performance across both divisions. Alongside ongoing operational improvements, the Board is actively evaluating options to reduce debt, which continues to be a key strategic priority.