Key Highlights

Net debt was AUD 37.8 million at 31 December 2025, up from AUD 20.8 million at 30 June 2025, and still near AUD 38 million in May 2026.

Half-year operating cash flow of AUD 3.29 million was dwarfed by AUD 15.27 million of payments for property, plant and equipment.

Management targets a two to three times lift in its own free cash flow measure by FY28 via workshop consolidation, cost-out and refinancing.

Share-price attention may centre on whether Alfabs Australia delivers the operational and strategic milestones described in the update.

Alfabs Australia Limited has not swung to positive free cash flow, and its net debt has risen rather than fallen. The Hunter Valley engineering and mining services group reported net debt of AUD 37.8 million at 31 December 2025, then used its 11 June 2026 investor day to set out a cash recovery plan running to FY28.

The latest financial position

From a Kurri Kurri workshop to the ASX boards

Alfabs Australia Limited (ASX:AAL) is one of the smaller industrial names on the Australian market and one of the less closely followed. The group began life in the 1950s as Alfabs Engineers and was taken over by its founding family in 1986. It listed on the ASX on 28 June 2024 at 25 cents a share, raising about AUD 30 million, according to its FY25 annual report. The business runs from Kurri Kurri in the New South Wales Hunter Valley, with workshops also at Wollongong and at Mackay in Queensland. Roughly half its revenue comes from mining services and half from engineering and fabrication, it told investors on 11 June 2026.

Operations and the recovery programme

What the numbers actually show

In its half-year results announcement of 23 February 2026, covering the six months to 31 December 2025, Alfabs reported revenue of AUD 55.6 million, up 28%, underlying EBITDA of AUD 12.3 million, down 2%, and statutory EBITDA of AUD 9.5 million. EBITDA is earnings before interest, tax, depreciation and amortisation. Net profit after tax was AUD 1.32 million.

Targets still need to be delivered

The same announcement put net debt at AUD 37.8 million, up from AUD 20.8 million at 30 June 2025, attributing the increase to continued capital investment in the hire fleet. Net debt is borrowings less cash. At the investor day the company again put net debt excluding leases at about AUD 38 million as at May 2026. That is a rise of roughly AUD 17 million over eleven months, not a fall.

About Alfabs Australia

Alfabs Australia Limited has not swung to positive free cash flow, and its net debt has risen rather than fallen. The Hunter Valley engineering and mining services group reported net debt of AUD 37.8 million at 31 December 2025, then used its 11 June 2026 investor day to set out a cash recovery plan running to FY28. The company’s position remains linked to the operational, financial and strategic developments detailed in the supplied article.

What Investors May Watch Next

Revenue, margins and operating performance

Free cash flow and debt reduction

Restructuring and refinancing progress

Customer demand and the AAL share-price response

Risks

The company faces demand, customer concentration, contract, cost, debt, refinancing and execution risks. Management targets are forward-looking rather than achieved outcomes. The supplied information is a point-in-time summary and does not establish future operational or share-price performance.