• Earnings recovery with a $2.3M increase in EBITDA to a modest loss of $436K
• Revenue growth driven by strong performance in API Manufacturing and Specialty Orals businesses
• On track to exceed annualised cost savings target of $2M (vs. original ~$1M)

IDT Australia has reported its 1HFY26 results, highlighting a strategic realignment under new leadership that has driven an earnings recovery and improved financial performance. The company recorded a $2.3M increase in EBITDA to a modest loss of $436K, with normalised EBITDA (excluding one-off redundancy costs) at -$256K. This was driven by strong revenue growth in the company's API Manufacturing and Specialty Orals businesses, which saw a 20.3% increase compared to the prior corresponding period. The company's Sterile Fill (Advanced Therapies) business experienced a 25.7% decline due to timing of customer projects, but activity is expected to normalise in the second half. IDT has also exceeded its cost savings target, with annualised savings of $2M compared to the original ~$1M target, driven by organisational restructuring, use of internal expertise, and digitisation and automation initiatives. The company is well-positioned to capitalise on growth opportunities in the mRNA and radiopharmaceutical markets, with its leading capabilities in these areas. Overall, the early results from IDT's strategic reset have reinforced a positive outlook for the full year.

IDT Australia is positioned for further growth, benefiting from its strategic reset. The company has a solid pipeline across its business units and is strongly positioned to capitalise on growing opportunities in the mRNA and radiopharmaceutical markets. The company is focused on achieving a positive operating profit in the near-term, with additional savings potential from further automation and AI investments. IDT's streamlined business can support further growth with only marginal increases in operating expenses.