• Strong cash generation and lower operating costs despite softer trading conditions
• Improved working capital and net cash position
• Streamlined cost base and more resilient business model

GALE Pacific Limited (GALE) reported its results for the half year ended 31 December 2025 (H1 FY26), showcasing strong cash generation and lower operating costs despite softer trading conditions in key markets. The company achieved an operating cash inflow of $15.1 million, a significant improvement of $17.5 million compared to the prior corresponding period (PCP). This was driven by improved working capital management, resulting in a net cash position of $1.9 million at the end of the period. EBITDA of $5.3 million exceeded the company's November 2025 guidance, supported by margin improvement initiatives, reduced overheads, and optimization benefits in the U.S. business. Revenue declined 9.5% to $82 million, reflecting softer U.S. demand and a weather-impacted start to the Australian retail season. The company reported a net loss after tax of $3.3 million, partially offset by operating model efficiencies. Key drivers of performance included working capital efficiency, implementation of operating efficiencies, and a more streamlined cost base, partially offset by weaker U.S. trading conditions and a slower start to the Australian retail season. The company made progress towards a more diversified manufacturing footprint and secured a long-term contract extension with a high-volume commercial customer.

The company is encouraged by the progress achieved during the first half, particularly in relation to operating discipline and cash generation. While global trading conditions remain challenging, GALE enters the second half of FY26 with a more efficient cost base, improved cash conversion, a strengthened U.S. operating model, and progress towards a more diversified manufacturing structure. Management remains focused on productivity and continued implementation of strategic initiatives, particularly those that will deliver growth across all regions.