• Underlying EBIT increased 1.0% and NPAT increased 2.2% vs last year
• Free cash flow increased by 135.4% to $70.6m
• Total debt reduced by $196.1m, with net leverage improving to 2.21x
• Interim dividend of 25.0 cps, up 16.3% on FY25 final dividend

Domino's Pizza Enterprises Ltd reported its H1 2026 results, with network sales of $2.04b (-1.6% vs last year) and underlying EBIT of $101.5m (+1.0% vs last year). Underlying NPAT increased 2.2% to $60.1m, benefiting from lower interest costs. Free cash flow excluding divestments increased by 135.4% to $70.6m, driven by lower capital expenditure and stronger operating cash performance. The company reduced total debt by $196.1m, with net leverage improving to 2.21x from 2.57x. An interim dividend of 25.0 cps was declared, up 16.3% on the FY25 final dividend. Franchisee profitability, measured as average 12-month rolling EBITDA per store, increased 4.5% to $103k. The company is executing on its strategic reset, focused on improving the value equation, simplifying the menu, and enhancing franchisee profitability. A new Group CEO, Andrew Gregory, has been appointed to lead the next phase of the company's development.

The company expects to deliver $20-30m in annualised cost savings in FY26, with two-thirds of these benefits flowing directly to franchisees through lower food costs and reduced national advertising fund contributions.