Key Highlights

  • FY26 Revenue increased 6.9% to a record $1.33 billion, while Gross Profit rose 11.0% to $298 million.
  • Statutory NPAT increased 19.2% to $92 million and underlying EBITDAFX rose 9.9% to $134 million.
  • Operating cash flow increased by $40 million to $88 million, while free cash flow conversion improved to 62.5%.
  • Total FY26 dividends increased 4% to 13.0 cents per share, including a 6.5-cent final dividend.

Redox (ASX: RDX) fell 4.21% to $3.64 AUD today, despite reporting record FY26 revenue of $1.33 billion. The modest sell-off reveals market concerns even as the company delivered strong underlying Earnings growth and improved cash flow generation. The company delivered record revenue and higher profitability in FY26 despite subdued operating conditions across parts of its markets. The chemicals, ingredients and raw materials distributor reported revenue of $1.33 billion for the year ended 30 June 2026, representing growth of 6.9% from FY25. Gross profit increased at a faster pace, rising 11.0% to $298 million, while Gross Profit Margin expanded by 0.8 percentage points to 22.4%. Redox shares were trading at $3.72, down 2.11% or $0.08 at 10:17am on 20 August 2026.

Underlying EBITDAFX increased 9.9% to $134 million, while statutory NPAT rose 19.2% to $92 million. Underlying NPATFX increased 9.0% to $87 million. Pro forma Basic Earnings Per Share increased 19.2% to 17.5 cents.

The earnings improvement was accompanied by a higher after-tax return on invested capital, which increased 1.1 percentage points to 14.6%. Higher operating earnings more than offset additional Capital invested in acquisitions and working capital.

Regional Performance

Australia remained Redox's largest market, with revenue increasing 6.1% to $1.12 billion. Growth was supported by several major industry segments and a contribution from Molekulis, whose sales of transformer oils to energy generation and transmission customers continued to develop.

North America was a notable source of growth. Revenue in the region exceeded $100 million for the first time, increasing 33.8% during FY26. The company attributed the expansion to new customer wins, increased share of wallet and a broader product range across Industrial, Food, Human Health and Personal Care.

New Zealand was weaker, with revenue declining 4%. The reduction was primarily linked to softer Demand in the Human Health segment, making it one of the negative movements in the group's regional performance.

Costs, Margins and Cash Generation

Redox's margin improvement occurred alongside higher operating expenses. Underlying operating expenses increased by $19 million to $176 million as the company supported higher activity levels and continued Investment in its workforce and capabilities.

Distribution and storage expenses rose by $6 million, mainly due to higher sales volumes and increased fuel and transport costs. Administration expenses increased by $8 million, reflecting additional headcount, wage growth and incentive payments.

Despite these cost increases, the improvement in gross profit supported a higher conversion margin of 44.8%. Operating Cash Flow rose by $40 million to $88 million, while cash before financing increased to $84 million from $59 million in FY25.

Free cash flow conversion improved by 21.8 percentage points to 62.5%, indicating that a greater proportion of earnings translated into cash during the year. Net Working Capital was $417 million at year-end, equivalent to 31.4%, remaining within the company's stated long-term range.

Balance Sheet and Dividend

Redox finished FY26 with $123 million in cash and cash equivalents, including short-term deposits, and reported a zero-net-debt position. The Balance Sheet therefore provided capacity for continued organic investment and potential acquisitions.

The Board declared a final Dividend of 6.5 cents per share, unchanged from the FY25 final dividend. However, total dividends for FY26 increased 4% to 13.0 cents per share, reflecting the earlier interim distribution. The total dividend represented a Payout Ratio of 74% of NPAT, within Redox's target range of 60% to 80%.

The final dividend has a Record Date of 26 August 2026 and is scheduled for payment on 22 September 2026.

Conclusion

Redox entered FY27 following a year of higher revenue, expanding margins, increased statutory profit and improved cash generation. Australian operations continued to provide the largest contribution, while North American revenue exceeded $100 million and New Zealand experienced a decline in demand. Higher operating expenses remained a feature of the period, but gross profit growth outpaced those increases. The company's zero-net-debt position, increased cash generation and continued dividend payments provide the financial backdrop for further organic expansion and potential strategic acquisitions.