• EBITDA of $4.4 million in Q2 FY26, $5.7 million in H1 FY26
• Positive operating cash flow of $15.3 million in Q2 FY26, $11.6 million in H1 FY26
• Net Cash/(Debt) position of $1.7 million at end of December

Gale Pacific Limited (GALE) has reported improved operational and financial performance in the second quarter and first half of the 2026 financial year. For Q2 FY26, the company delivered EBITDA of $4.4 million, resulting in a H1 FY26 EBITDA of $5.7 million, which was ahead of the $4 million EBITDA guidance provided in November 2025 and slightly above H1 FY25. The company also generated positive operating cash flow of $15.3 million in Q2 FY26, resulting in H1 FY26 operating cash flow of $11.6 million, delivering a significantly improved Net Cash/(Debt) position of $1.7 million at the end of December. These improvements came despite difficult trading conditions in the U.S. and a slow start to the Australian peak retail season, which impacted year-on-year revenue, which was down 9% for H1. The company's focus on productivity and efficiency is evident in its ability to maintain production margins despite inflationary pressures, with overheads falling $3.8 million or 12% year-on-year for H1. The company has made strong progress in diversifying its manufacturing footprint outside China and is implementing productivity improvements in its China operations. The company remains cautiously optimistic for the remainder of FY26 and will continue to focus on the delivery of productivity and efficiency initiatives.

The company is pleased with the strategic progress achieved over the past six months and will continue to focus on the delivery of productivity and efficiency initiatives, while remaining cautiously optimistic for the remainder of FY26.