• 1H26 sales expected at $12-12.2m, EBITDA at $600-700k
• ATS turnaround on track, 2H26 sales expected at $1.5-2.0m
• Glowing Structures acquisition generating $2m in orders for 2H26

FOS Capital Limited (ASX: FOS) has provided an update on its trading performance for the first half of FY26 (1H26). Sales for 1H26 are expected to be in the range of $12-12.2m, compared to $14m in the prior corresponding period (pcp) and $11.5m in 2H25. EBITDA (excluding ATS restructuring costs) for 1H26 is expected to be in the range of $600-700k, compared to $1.4m in the pcp and $700k in 2H25. The company cites soft trading conditions in recent months as the reason for the lower sales and EBITDA. However, FOS expects half-on-half improvement in sales to continue in 2H26, based on the makeup of the current Order Book ($9m), Quote Book ($110m), and contributions from the recent ATS and Glowing Structures acquisitions. The company has also identified opportunities to further reduce operating expenses through a combination of headcount reduction and import replacement of certain products, which is expected to drive annualised savings and Gross Profit improvements totalling $1.5m per annum, starting from 3Q26. The update also provides progress on the ATS business, which was acquired in late June 2025. The turnaround of ATS is well underway, and the business is on target to achieve profitability by June 2026. Key highlights include the establishment of a dedicated sales team, $1m in sales and orders procured to date, $5.5m in active quotes, the completion of non-core asset sales, and the transfer of product certification and approvals to FOS Lighting. 2H26 sales for ATS are expected to be in the range of $1.5-2.0m. Additionally, the update covers the integration of the Glowing Structures acquisition, which was completed in May 2025. While there has been no material earnings impact to FOS financials in 1H26, a total of $2m in orders and specifications were generated, which will contribute to FOS sales in 2H26.