Highlights:

  • Adrad Holdings (ASX:AHL) was trading at AUD 1.08, up 3.85 during the morning Trading session on 18 August 2026.
  • FY26 Revenue from continuing operations increased 1.6% to $155.5 million, while underlying EBITDA rose 10.8% to $19.5 million.
  • Operating cash flow increased 28.8% to $17.9 million, supporting continued Investment initiatives.
  • Heat Transfer Solutions expanded data centre Manufacturing capacity and secured additional mining, power generation and industrial contracts.
  • The company declared a fully franked final Dividend of 2.56 cents per share, taking FY26 dividends to 4.01 cents per share.

Adrad Holdings Ltd (ASX:AHL) was trading at AUD 1.08, up 3.85% the morning trading session on 18 August 2026. The company has also recorded a 63.64% increase over the past year. Adrad has released its FY26 results, outlining improved earnings, higher Operating Cash Flow and progress across its operational improvement initiatives.

The company reported that the year ended 30 June 2026 reflected a period of operational changes focused on efficiency improvements, Margin enhancement and cash generation. While revenue growth remained modest, management highlighted improved profitability across the Group and a strengthened Balance Sheet supporting continued investment in strategic growth initiatives.

Earnings Growth Supported by Operational Improvements

Adrad reported revenue from continuing operations of $155.5 million in FY26, representing a 1.6% increase compared with the prior period. Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 10.8% to $19.5 million, while statutory EBITDA rose 7.9% to $17.8 million.

Underlying Net Profit After Tax (NPAT) increased 9.7% to $7.9 million, while statutory NPAT grew 15.4% to $6.5 million. According to the company, the improvement reflected Leadership changes, organisational restructuring, operational efficiency initiatives and continued growth within its Heat Transfer Solutions segment.

Operating cash flow increased 28.8% during FY26 to $17.9 million, providing funding support for strategic investments while maintaining the company’s approach to Capital allocation.

Heat Transfer Solutions Expands Data Centre and Industrial Capabilities

The Heat Transfer Solutions segment recorded improved operating performance during FY26, supported by Demand across power generation, data centre and industrial infrastructure markets.

During the year, Adrad expanded its dedicated data centre manufacturing capability, including completion of a radiator assembly work cell that doubled production capacity within six months. The company received more than 400 data centre orders across Lara and Gillman.

The segment also delivered several project developments, including the manufacture and delivery of 20 large radiator systems for an 85MW power station in Western Australia. In addition, Adrad secured approximately $4.3 million of additional Mining and power generation contracts scheduled for FY27 delivery.

The Thailand operation also secured three major Japanese heavy industries original equipment manufacturer customers for Southeast Asian power generation projects.

Product Development and Manufacturing Expansion Continue

Adrad progressed several product initiatives during FY26, including Alu Fin product development and the launch of its Thailand coil product range, which secured approximately $2.0 million of new Business during the year.

The Board approved an expansion of the Thailand manufacturing Facility to support future opportunities across original equipment manufacturer markets, industrial coils, power generation and Asia Pacific operations.

The company said Heat Transfer Solutions continues to target opportunities across data centres, power generation, mining, defence and industrial infrastructure markets, supported by its technical capabilities.

Distribution Segment Focuses on Channel Expansion

The Distribution segment continued implementing operational initiatives during FY26, including expanding its product range, increasing customer engagement and growing mechanical trade and reseller distribution activities.

The company also continued the rollout of the Natrad Autocare network. However, trading conditions softened across some traditional aftermarket channels during the second half, with Adrad noting impacts from broader economic conditions and reduced end-user demand.

Growth through mechanical trade, reseller distribution and Natrad Autocare channels partially offset weaker conditions in traditional radiator repair markets. The company stated that operational initiatives, restructuring actions and pricing measures implemented during the fourth quarter supported margin improvement entering FY27.

Adrad highlighted that Distribution remains a cash-generating platform supporting investment into the Heat Transfer Solutions business.

Dividend Payment and FY27 Outlook

The Board declared a fully franked final dividend of 2.56 cents per ordinary share, bringing total dividends declared for FY26 to 4.01 cents per share. The dividend represents approximately 50% of statutory NPAT. The Record Date is 21 September 2026, with payment scheduled for 21 October 2026.

Looking ahead, Adrad enters FY27 with improved profitability, higher operating cash flow and an updated operational platform following initiatives completed during FY26.

Management will continue focusing on operational excellence, disciplined capital allocation and sustainable earnings growth. Within Heat Transfer Solutions, the company expects opportunities across data centres, power generation, mining and industrial infrastructure markets while progressing manufacturing optimisation and product development initiatives.

Within Distribution, Adrad plans to continue expanding its product offering, strengthening customer relationships and increasing market penetration through mechanical trade, reseller distribution channels and the Natrad Autocare network.

The company expects to deliver a stronger first-half result in FY27 compared with the prior corresponding period, supported by a substantial Heat Transfer Solutions order book.

Investor Takeaway

Adrad’s FY26 results highlight a year focused on improving operational efficiency, profitability and cash generation. Investors may continue watching execution across Heat Transfer Solutions, including data centre manufacturing expansion and industrial project delivery, alongside Distribution channel development and the company’s ability to maintain earnings improvement through FY27.