• Completed program to reset Group's cost base, review structure, and ensure clear accountabilities
• Achieved revenue growth in key business units with strong market positions
• Successful inventory reduction program, with $44.1 million reduction since Dec 2024
• Strengthened core supplier partnerships with multi-year strategic agreements

NTAW Holdings Ltd (ASX: NTD) continued the program started in 2H2025 to reset the Group's cost base, review the organisational structure, and ensure clear accountabilities and responsibilities. This built a solid foundation for the half-year ended 31 December 2025 (1H2026) to focus on resetting Group performance across customer stability, supplier alignment, expense control and inventory management. Several key suppliers have transitioned from transactional relationships to multi-year strategic partnerships, which will deliver benefits in 2H2026 and FY2027. Revenue growth was achieved in business units with strong market positions, such as Dynamic Wheel Co., Statewide and Solid Plus. A successful inventory reduction program resulted in a $44.1 million decrease since the end of 1H2025. Expenses largely stabilised after the reset in 2H2025, and the Group aims to expand revenue opportunities on the existing cost structure. The Group repaid $13.7 million in debt during 1H2026, with a further $2.25 million repaid since balance date. Additional repayments are planned for FY2027.

The Group expects to continue strengthening gross profit margins through more disciplined promotional activities, support from strategic supply partners, and improvements in freight. The company also anticipates potential long-term savings of $2 million per annum from property consolidation and cost reduction initiatives.

The Group is focused on driving revenue growth, particularly through the expansion of Dynamic Wheel Co. in New Zealand and securing regional and national fleet contracts for its Black Rubber business. The company also expects to realise benefits from its strengthened strategic supplier partnerships, which will improve its ability to compete on price, promotions and targeted campaigns. The Group's cost base is expected to remain relatively flat as it focuses on growing sales.