Highlights

  • Close The Loop reported FY26 Revenue of $125.6 million from continuing operations, up 6% on the previous corresponding period.
  • EBITDA increased 34.2% to $12.4 million, while adjusted NPATA improved to $1.4 million from a $5.4 million loss.
  • Close The Loop shares were trading at AUD 0.043, up 13.16% during the morning Trading session on 24 August 2026, and remained 43.33% higher over the past year.
  • Net Debt declined to $38.1 million at 30 June 2026 before falling further to $18.3 million at 31 July 2026 after settlement of the convertible notes.
  • The company reconfirmed FY27 EBITDA guidance of $14 million to $16 million, representing approximately 13% to 30% growth on FY26 EBITDA.

Close The Loop (ASX:CLG) has reported its FY26 results after completing a broad strategic reset involving asset divestments, Business exits, debt reduction and a sharper focus on operations with more favourable underlying economics. The company recorded higher revenue, Gross Profit and EBITDA from continuing operations, while management said FY27 would shift the emphasis from restructuring toward execution, Margin improvement and cash generation.

During the morning trading session on 24 August 2026, Close The Loop shares were trading at AUD 0.043, up 13.16%, or AUD 0.0050. The stock remained up 43.33%, or AUD 0.01, over the past year.

The circular-economy group operates across Australia, Europe, South Africa and the United States, with activities spanning sustainable packaging and the collection, sorting, reclamation and reuse of resources that might otherwise be directed to landfill.

FY26 Continuing Operations Record Higher Revenue and EBITDA

Revenue from continuing operations reached $125.6 million in FY26, representing an increase of 6% on the previous corresponding period.

Gross profit rose 25% to $46.2 million, while the Gross Profit Margin expanded to 36.8% from 31.1% in the prior corresponding period. EBITDA increased 34.2% to $12.4 million.

Adjusted NPATA moved back into positive territory at $1.4 million compared with a loss of $5.4 million in the previous corresponding period.

The headline Earnings improvement came as Close The Loop reshaped the composition of the group. Management described FY26 as a period in which resources were redirected toward businesses with more favourable economics, while underperforming and discontinued operations were exited.

The divestment and write-down of discontinued businesses resulted in a $105.1 million loss. While this weighed heavily on the broader statutory outcome, the company characterised the charges as part of completing the portfolio reset.

Packaging Emerges as the Main Earnings Contributor

The Packaging Division recorded 16% revenue growth and a 48% increase in EBITDA during FY26.

Close The Loop attributed the division's performance to its South African operations, increased share of wallet with existing customers and the addition of new tier-one customers.

Packaging is also central to the company's FY27 growth priorities. Management intends to expand sales, deepen relationships with existing customers and use the group's international footprint to pursue further opportunities.

The Resource Recovery Division, by contrast, generated revenue of $55.4 million and an EBITDA loss of $2.8 million.

Its performance reflected the restructuring of the plastics recycling operations and the deliberate Withdrawal from lower-margin Volume processes.

Close The Loop has consolidated its plastics recycling activities from three sites into one profitable site, which management said provides additional capacity and a more focused operating base for FY27.

Following the sale of ISP Tek Services, Resource Recovery is now being managed with an emphasis on rebuilding margins from a smaller operating footprint.

Asset Sales and Convertible Note Settlement Reduce Debt

Balance-sheet repair was another major element of the FY26 reset.

Net debt stood at $38.1 million at 30 June 2026, down $15.3 million, or 29%, compared with the previous corresponding period.

The sale of ISP Tek Services for US$10 million, together with existing cash reserves, enabled approximately US$16 million of debt to be repaid during FY26.

Debt declined further after the end of the financial year. Following settlement of the convertible notes, net debt fell from $38.1 million at 30 June 2026 to $18.3 million at 31 July 2026.

That represented a reduction of $19.8 million, or 52%, since year-end.

Close The Loop said it is also in advanced discussions with potential financiers regarding the refinancing of its remaining debt facilities. Management expects the lower debt balance and a restructured funding position to reduce interest costs and provide greater financial flexibility.

FY27 Strategy Shifts From Restructuring to Execution

With the portfolio reset largely completed, Close The Loop has outlined several operating priorities for FY27.

The company plans to concentrate on growing its retained businesses, improving profitability through productivity and cost measures, strengthening cash conversion and lowering Working Capital requirements.

Management also intends to broaden relationships with original equipment manufacturers by increasing volumes and product penetration within existing accounts while pursuing additional global OEM opportunities.

Debt reduction remains part of the strategy, with the company seeking to refinance existing facilities on improved terms and use internally generated Cash Flow to further reduce borrowings.

Close The Loop is also reviewing the wider business for opportunities to use AI, automation and technology-enabled processes.

Over the next 18 months, management expects initiatives to be progressively introduced across the group to streamline processes, lift productivity, lower operating costs and improve scalability.

The company expects these measures to generate cost savings over time and support its margin and earnings profile.

FY27 EBITDA Guidance Reconfirmed

Close The Loop reconfirmed FY27 EBITDA guidance of $14 million to $16 million.

At the lower end, that would represent approximately 13% growth compared with FY26 EBITDA of $12.4 million, while the upper end represents growth of around 30%, according to the company's guidance.

Chief Executive Officer Kesh Nair said FY26 had centred on making the decisions required to reset the company and address issues within management's control.

He said the reduction in debt had changed the group's financial position and provided management with greater flexibility to concentrate on improving the performance of the retained businesses.

Nair identified four core priorities for FY27: growing businesses with more favourable economics, improving margins, converting earnings into cash and continuing to lower debt.

He also said the company would remain disciplined in its capital allocation and concentrate on opportunities already within the group rather than relying on larger forward-looking commitments.

What Investors May Be Watching

Close The Loop enters FY27 with a smaller operating portfolio, lower debt and a clearer emphasis on Packaging, margin recovery and cash generation.

The areas likely to remain central to the company's progress include whether Packaging can maintain its revenue and EBITDA trajectory, whether Resource Recovery can improve profitability following its restructuring, and whether technology and automation measures translate into the anticipated efficiency gains.

Balance-sheet execution will also remain relevant, particularly the proposed refinancing of remaining debt facilities and management's aim to continue reducing borrowings through internally generated cash flow.

For FY27, the clearest financial reference point remains the reconfirmed EBITDA guidance of $14 million to $16 million. Management's stated focus is now on demonstrating that the FY26 reset can be converted into earnings growth, better cash conversion and further debt reduction.