• Revenue of $92.3m, up 2% from prior period
• Underlying EBITDA of $9.3m, down 23% from prior period
• Underlying NPATA of $2.5m, down 61% from prior period
• Net debt increased 12% to $56.98m

Close the Loop Limited (ASX: CLG), the circular economy industry leader, has released its results for the half year ended 31 December 2025. Key financial highlights include revenue of $92.3m, up 2% from the prior corresponding period (pcp), underlying EBITDA of $9.3m, down 23% from pcp, and underlying NPATA of $2.5m, down 61% from pcp. Operating cashflow was $4.9m, down from $2.5m in the prior period. Net debt increased 12% to $56.98m. The North American refurbishment and ITAD segment continued to face operational challenges, with lower volumes through the businesses' processing facilities. However, the Mexicali facility is ramping up, with improved throughput, expanding capacity, and increasing labour efficiency. The company's core packaging businesses delivered a solid performance, achieving double-digit revenue and EBITDA growth. The European business expanded its pan-European multi-vendor collection program, while the South African business continued to grow, securing new orders from existing and new customers. Following a covenant breach in the prior period, the company's banking covenants were reset, with the loan now compliant and reclassified as non-current. The company is focused on strengthening its balance sheet, with a priority on reducing leverage through targeted divestments, operational restructuring, and improved cash generation. The company expects to emerge from the review on a stronger and more stable footing, with a simplified portfolio, improved financial resilience, and a clearer focus on growth.

While overall Group financial performance in 1H26 was below the prior corresponding period and internal expectations, the Packaging Division continued to demonstrate resilience and remains a strong and stable business within the Group, delivering comparatively improved earnings during the half. The company remains confident in the Division's ability to generate solid ongoing performance and underpin the Group's longer-term growth.