• Operating discipline and cash generation delivering clear outcomes
• Focus continues to optimise the global operating model to improve productivity and agility
• Core US customers remain committed despite ongoing market headwinds

GALE Pacific, a leading manufacturer of technical textiles and shade solutions, has reported its H1 FY26 results. The company's revenue was $82.0 million, down 9.5% from the prior period, while EBITDA was $5.3 million, ahead of guidance of $4.0 million. The net loss after tax was $3.3 million, with $1.6 million attributed to the non-recognition of US tax losses as a deferred tax asset. The company made significant progress on its key priorities during the period. In the Americas, the operating model reset delivered a 24% reduction in the total US workforce, streamlining administration and management roles. This resulted in FY26 cash savings of $3.1 million and recurring annualized savings of $3.7 million, with further cost improvement initiatives under review.GALE also advanced its manufacturing diversification, with successful pilot production of Roller Shade fabric in Thailand and accelerating project work with a Thai partner on Roller Shade assembly trials. The review of the China manufacturing cost base is progressing, with warehouse consolidation and workforce optimization projects on track.The company's new websites and e-commerce platform are now live, with global harmonization of the consumer digital presence and e-commerce capability launched in the US, achieving first sales in H1. The platform is also set to launch in Australia in H2, with enhanced content and functionality to support both consumer and commercial customers.Looking ahead, GALE's key priorities for H2 FY26 include maximizing the North American peak retail summer trading season, driving cost efficiency through removing duplication and waste in the operating model, continuing the implementation of the manufacturing diversification program, and accelerating focused growth initiatives in priority consumer and commercial segments.The company remains focused on operational discipline, cash generation, and the execution of strategic growth initiatives, despite the ongoing uncertainty in the US retail market. Given this uncertainty, GALE has chosen to refrain from providing full-year FY26 performance guidance at this time.

• Australian summer retail peak selling season finishing strongly
• Trading conditions in American retail expected to remain challenging entering the peak trading season
• Continued uncertainty related to US trade policy on tariffs expected to influence market conditions
• Ongoing regional instability in the Middle East expected to continue affecting customer confidence
• Cost benefits from changes to the US operating model will manifest in the second half
• Early, positive customer engagement on targeted market growth initiatives anticipated to drive contribution from FY27