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Highlights

  • IDT Australia shares surged by 25.5% on 18 February 2026, followed by its latest financial update.
  • Company’s revenue from three core verticals rose 20.3% in H1 FY26.
  • EBITDA loss narrowed 83.8% year-on-year in H1 FY26.
  • Total expenses declined 20% compared with H1 FY25.
  • API Manufacturing revenue climbed 191.4% in H1 FY26.
  • Annualised cost savings target doubled to AUD 2 million.

IDT Australia Ltd (ASX:IDT) shares climbed 25.58% to AUD 0.054 on 18 February 2026, following the release of its H1 FY26 results for the period ended 31 December 2025. Despite the rally, the stock remains down approximately 22.86% over the past six months and 55% over the past year. Today’s market reaction coincided with a significant reduction in losses, improving revenue mix and early benefits from the company’s strategic reset.

Revenue Mix Improves Despite Lower Reported Total Revenue

For H1 FY26, total revenue declined 7.1% year-on-year to AUD 9.8 million compared with AUD 10.5 million in H1 FY25. The decrease was primarily due to a 61.4% drop in disbursements and other low-margin revenue, which fell to AUD 1.4 million in H1 FY26 from AUD 3.5 million in H1 FY25.

Excluding these lower-margin disbursements, revenue from IDT’s three core verticals increased 20.3% year-on-year to AUD 8.4 million in H1 FY26, up from AUD 7.0 million in H1 FY25. The growth was driven by favourable performances in API Manufacturing and Specialty Orals.

API Manufacturing revenue rose 191.4% in H1 FY26 to AUD 3.0 million, reflecting a re-established growth focus and client targeting strategy. Specialty Orals revenue increased 25.8% year-on-year to AUD 2.5 million in H1 FY26, supported by a shift toward the growing radiopharmaceutical sector.

In contrast, Sterile Fill (Advanced Therapies) revenue declined 25.7% to AUD 2.9 million in H1 FY26, largely due to timing of customer projects, with activity expected to normalise in the second half.

Losses Narrow Sharply as Cost Controls Take Effect

IDT remains EBITDA negative; however, performance improved materially in H1 FY26. EBITDA loss narrowed 83.8% year-on-year to AUD 0.4 million compared with a loss of AUD 2.7 million in H1 FY25 — representing a AUD 2.3 million improvement. Normalised EBITDA stood at negative AUD 0.3 million in H1 FY26, excluding one-off redundancy costs.

Total expenses in H1 FY26 declined 19.5% year-on-year to AUD 9.0 million, while operating expenses fell 14% to AUD 6.6 million compared with H1 FY25. The reduction was attributed to organisational restructuring, lower headcount, use of internal expertise on capital projects instead of external consultants, and early benefits from digitisation and automation initiatives.

The company has doubled its annualised cost savings target to AUD 2 million from an initial target of approximately AUD 1 million, with further savings potential expected from automation and AI investments.

Strategic Reset and Growth Positioning

Management highlighted that the business is positioned to benefit from a strategic reset focused on higher-quality clients, repeat work and improved operating leverage. Plant utilisation currently fluctuates between 20% and 35%, indicating capacity to scale production without significant increases in operating expenses.

IDT continues to position itself as a key player in mRNA and radiopharmaceutical manufacturing. It is the first cGMP in-human mRNA vaccine clinical supplier in Australia and a leading mRNA vaccine clinical supplier in the southern hemisphere. The global mRNA market is forecast to reach USD 26.1 billion by 2034, while the global radiopharmaceutical market is expected to reach USD 21.9 billion by 2029, underscoring long-term growth opportunities.

Investor Takeaway

Although IDT reported a modest EBITDA loss in H1 FY26, the scale of improvement compared with H1 FY25, combined with 20.3% growth in core operating revenue and a 19.5% reduction in total expenses, signals tangible progress from its strategic realignment. The favourable growth in API Manufacturing and Specialty Orals, alongside cost optimisation initiatives and improved revenue mix, appears to have underpinned the sharp share price reaction on 18 February 2026.

While the stock remains down approximately 55% over the past year, the narrowing losses, exceeded savings targets and clearer path toward positive operating profit are likely contributing to renewed investor interest as the company targets improved performance in the second half of FY26

Frequently Asked Questions (FAQs)

  1. Why did IDT Australia shares rise on 18 February 2026?

IDT shares rose 25.58% to AUD 0.054 after reporting H1 FY26 results showing a significant reduction in EBITDA losses, 20.3% growth in core operating revenue and a 19.5% decline in total expenses compared with H1 FY25.

  1. Is IDT profitable in H1 FY26?

IDT remains EBITDA negative in H1 FY26, reporting an EBITDA loss of AUD 0.4 million; however, this represents an 83.8% improvement compared with the AUD 2.7 million loss in H1 FY25.

  1. What drove revenue growth in H1 FY26?

Revenue growth in H1 FY26 was primarily driven by a 191.4% increase in API Manufacturing revenue and a 25.8% rise in Specialty Orals revenue compared with H1 FY25.