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Highlights

  • Ashley Services Group shares surged 10.42% to AUD 0.26 on 19 February 2026 followed by release of its 1H26 results.
  • Group revenue reached a record AUD 308.2 million in 1H26, up 16% from 1H25
  • EBITDA rose 41% to AUD 7.6 million, while NPAT increased 88% to AUD 3.4 million in 1H26.
  • Labour Hire EBITDA climbed 25% to AUD 8.4 million, with margin improvement of 0.2pp to 2.8%.
  • Fully franked interim dividend of 1.4 cents per share declared, representing a 60% payout ratio.

Ashley Services Group (ASX:ASH) shares jumped 10.42% to AUD 0.26 on 19 February 2026, extending gains to 47.22% over the past year. Today’s rally follows the release of its half-year results for the six months ended 31 December 2025 (1H26), which reflected record revenue and sharply improved profitability.

Record Top-Line and Profit Expansion Drives Momentum

For 1H26, group revenue increased 15.8% to AUD 308.2 million compared with AUD 266.2 million in 1H25, marking the highest first-half revenue in the company’s history. EBITDA rose 40.7% to AUD 7.6 million from AUD 5.4 million in 1H25, while EBIT increased 62.9% to AUD 5.7 million.

Net profit after tax (NPAT) climbed 88.3% to AUD 3.4 million in 1H26, up from AUD 1.8 million in 1H25, reflecting margin expansion and operational efficiencies implemented over the past 18 months.       

Operating cash flow delivered an inflow of AUD 0.8 million in 1H26, compared to an outflow of AUD 2.2 million in 1H25, despite a seasonal build-up in working capital during the second quarter.

Labour Hire Division Underpins Earnings Growth

The Labour Hire division remained the primary earnings contributor in 1H26. Revenue increased 16.1% to AUD 299.7 million, up AUD 41.7 million from 1H25, supported by contract wins across supply chain, retail and manufacturing sectors, as well as new project commencements in Victoria’s construction and traffic management businesses.

Construction revenues in 1H26 rose 58% from the prior period, while horticulture revenue grew 10% due to expanded winter harvesting initiatives.

Labour Hire EBITDA improved 25% to AUD 8.4 million in 1H26 from AUD 6.7 million in 1H25. The division’s EBITDA margin strengthened to 2.8%, up 0.2 percentage points, reflecting improved contract renewals, higher volumes and operational efficiencies across key sectors.

Training Segment Delivers Margin Expansion

The Training division recorded revenue of AUD 8.5 million in 1H26, up 3.8% from 1H25, driven primarily by increased public funding for rail-related courses and growth across Victoria and Queensland.

Training EBITDA surged 90% to AUD 1.9 million in 1H26 from AUD 1.0 million in 1H25, supported by tighter cost controls and improved profitability in rail-focused programs.

Balance Sheet Strength and Dividend Distribution Remains in Focus

Net debt increased by AUD 0.7 million to AUD 11.93 million as of 31 December 2025, largely due to finance obligations linked to equipment purchases for the Victorian traffic management business. Net assets rose to AUD 34.6 million, up from AUD 31.1 million on 30 June 2025, broadly in line with the 1H26 NPAT outcome.

To support ongoing organic growth, the Group expanded its Invoice Financing Facility from AUD 25 million to AUD 35 million and established an additional AUD 5 million overdraft facility. Banking covenants remain unchanged.

Ashley Services declared a fully franked interim dividend of 1.4 cents per share for 1H26, payable on 13 March 2026. The dividend represents a 60% payout ratio of profits attributable to shareholders, adjusted lower than prior periods to strengthen the balance sheet and support expansion into higher-margin sectors.

Frequently Asked Questions (FAQs)

  1. Why did Ashley Services shares rise on 19 February 2026?

Shares of Ashley Services Group (ASX:ASH) increased 10.42% to AUD 0.26 following record 1H26 revenue of AUD 308.2 million and strong profit growth, including an 88% rise in NPAT.

  1. How did Ashley Services perform in 1H26 compared to 1H25?

Revenue grew 15.8% to AUD 308.2 million, EBITDA increased 40.7% to AUD 7.6 million, and NPAT rose 88.3% to AUD 3.4 million in 1H26 versus 1H25.

  1. What dividend has Ashley Services declared for 1H26?

The company declared a fully franked interim dividend of 1.4 cents per share, representing a 60% payout ratio.