• Earnings below expectations due to driver shortages, facility expansions, and delays
• Statutory net loss of $12.8m driven by non-cash asset write-downs
• Renewed focus on organic growth, system consolidation, and balance sheet management

DGL Group Ltd reported mixed results for the first half of FY26, with revenue decreasing 6.2% to $225.2 million and a statutory net loss of $12.8 million. The company faced operational challenges including driver shortages, the cost of expanding facilities and implementing new systems, the cost and availability of used lead-acid batteries, and delays in completing a new Liquid Waste Treatment Facility. DGL also recorded non-cash write-downs of property, plant and equipment and assets held for sale, as well as one-off audit-related costs. To improve financial performance, DGL has taken actions including building capacity and capabilities, a renewed focus on costs and productivity, flattening and simplifying the management structure, and consolidating and integrating business units. The company's new auditor has completed a full audit of the H1 FY26 results, with a modified opinion related to inventory opening balances.DGL maintains a clear strategy focused on its core business providing specialised chemical logistics and services. The company increased warehouse capacity during the half year and has benefited from increased demand, including from competitors exiting the sector. DGL also invested in a new warehousing facility in Christchurch, New Zealand and is progressing the development of a new liquid waste treatment plant in Unanderra, NSW.The company entered into new funding arrangements with ScotPac Business Finance in March 2026, providing greater flexibility and better suited to DGL's ongoing business requirements. While the group expects improved results in H2 FY26, it notes the heightened uncertainties in the operating environment.

DGL expects improved results in H2 FY26 following a difficult first half, but notes the heightened uncertainties in the operating environment.