• Increased revenue, EBITDA and NPAT driven by operational reset and HTS momentum
• Transformational leadership and cost structure optimisation completed
• Strengthened HTS order book, particularly in data centre and power generation
• Distribution segment transitioning with improved performance expected in 2H

Adrad Holdings Ltd (ASX: AHL) reported its results for the half-year ended 31 December 2025. The Group generated revenue from continuing operations of $77.4 million, an increase of 0.6% compared to the prior corresponding period, and EBITDA of $8.3 million. Underlying EBITDA increased to $9.4 million, an improvement of 13.0% over the prior corresponding period, reflecting improved operating performance, particularly within the Heat Transfer Solutions (HTS) segment. Underlying NPAT increased by 20.0% to $3.4 million, after excluding non-recurring corporate restructuring costs. The improved underlying earnings performance reflects early benefits of the Group's cost structure optimisation and positions the business to capture growth opportunities across its core HTS end markets. A transformational leadership and management restructuring occurred during the period, which has significantly reduced costs while empowering the team to make faster decisions aligned with the Group's strategy. The HTS segment delivered a strong operating performance, with revenue increasing by 3.6% to $45.2 million and EBITDA increasing by 25.9% to $6.1 million. The Distribution segment experienced a transitional first half as management changes and structural cost improvements were implemented, with revenue of $32.2 million and EBITDA of $2.7 million. The Directors have declared a fully franked interim dividend of 1.45 cents per ordinary share, representing approximately 45% of NPAT.

The Group expects to realise further benefits from the restructuring through 2HFY26 as operating efficiencies are embedded and project execution and order book conversion continue to improve. The HTS order book has strengthened, particularly across data centre and power generation related activity, and the Group continues to build its pipeline of opportunities across key industrial and infrastructure end markets.

Following the completion of leadership and cost structure optimisation in 1HFY26, the Group is positioned to deliver profitable growth aligned with structural demand across its core HTS end markets. The Group will continue to maintain disciplined capital allocation while evaluating value accretive acquisition opportunities that strengthen capability, market position and customer reach. The outlook remains subject to customer demand, project timing, market conditions and the ongoing effectiveness of operational initiatives.