• Sales revenue of $225.2 million, down 5.8% on H1 FY25
• Underlying EBITDA of $24.7 million, down 5.0% on H1 FY25
• Statutory NPAT of ($12.8) million, down $10.5m on H1 FY25

DGL Group Limited (ASX: DGL), a leading provider of chemical logistics and services to essential industries in Australia and New Zealand, announced its financial results for the half year ended 31 December 2025 ('H1 FY26'), delivering stable results in a challenging market. Total revenue was $225.2 million, a decrease of 5.8% (pcp: $239.1 million) with a solid result from Manufacturing and Logistics supported by increased customer demand. Revenues in Environmental were reduced by increased cost and reduced availability of used lead acid batteries, and delays in completion of DGL's new liquid waste treatment facility. Underlying EBITDA was $24.7 million, a decrease of 5.0% (pcp: $26.0 million). Challenges during the period included driver shortages, higher costs associated with expanding facilities and implementing new systems. Underlying earnings were also impacted by higher occupancy costs as DGL continued to invest in new sites for growth. Gross profit fell by 5.0% to $97.9 million. Gross margin improved from 43.1% to 43.5%. The decrease in revenue was materially driven by the sale of the loss-making Laverton lead acid battery recycling site (H1 FY25 revenue: $9.8m). The Manufacturing and Logistics divisions continue to perform well. DGL recorded material non-cash write downs of property, plant and equipment and assets held for sale, and one-off audit related costs. As a result, DGL recorded a statutory net loss after tax of $12.8m (H1 FY25: $2.2m loss). DGL's cash flow from operations was $10.5m (H1 FY25: $18.1m), reflecting the drop in gross profit. Operating cash conversion was 72% (H1 Fy25: 95%) due to increased working capital. The Company has taken actions to improve the Company's financial performance including building capacity and capabilities, a renewed focus on costs and productivity, flattening and simplifying the management structure, and consolidating and integrating business units.

DGL is continuing to navigate an uncertain economic environment with highly volatile international commodity and logistics conditions. The Group expects improved results in H2 FY26 following a difficult first half, but notes the heightened uncertainties in its operating environment.