FOS Capital (ASX:FOS) Lifts 1Q27 Sales 64% as Cost Savings and Order Book Build

Aditi Sarkar

28 October 2026 02:35 PM AEDT

FOS Capital (ASX:FOS) Lifts 1Q27 Sales 64% as Cost Savings and Order Book Build

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Highlights

FY26 sales were $22.4 million, down 12%, with reported EBITDA of $(2.3) million.
1Q27 sales reached $7.25 million, up 64% on the prior corresponding period, with EBITDA of $0.55 million.
The active quote pipeline hit a record $130 million, up from $115 million.
About $2 million in annualised cost savings has been identified, with around $1 million already implemented.

FOS Capital has released its 2026 Annual General Meeting presentation, reviewing a difficult FY26 and outlining a stronger start to FY27. The founder-led business manufactures and distributes commercial LED lighting along with street and roadway lighting across Australia and New Zealand.

FY26 Performance Review

For the year ended 30 June 2026, FOS reported sales of $22.4 million, down 12% on the prior year. Gross profit was $9.7 million compared with $11.3 million in FY25, while expenses rose to $8.7 million from $8.0 million.

EBITDA excluding ATS restructuring costs was $(0.5) million, compared with $2.1 million in FY25. Reported EBITDA was $(2.3) million after $1.3 million of ATS restructuring costs and a $0.6 million inventory write-off. Net loss after tax was $(2.4) million and no dividend was declared. The company pointed to softer market conditions and delayed project awards, with strong quoting activity converting more slowly into firm orders. Closing cash was $1.0 million and net borrowings were $3.1 million at 30 June 2026.

Stronger Start to FY27

Trading improved in the first quarter of FY27. Sales reached $7.25 million, up 64% on the prior corresponding period, and EBITDA was $0.55 million. Management expects second-quarter sales volumes to be similar to the first quarter, with earnings supported by cost savings.

The active quote pipeline reached a record $130 million, up from $115 million, and the order book stood at $10.5 million in September 2026, up 15%. Recent wins include Monash Medical Clinic at about $1.0 million, the Queensland Schools Lighting Upgrade with about $2.5 million in expected sales, appointment to the MAV streetlighting panel and the first major contract under the Eastern Freeway Project.

Growth Strategy and Business Base

FOS employs about 85 staff, operates 15 brands and manufactures in Brisbane and Sydney. Around 96% of sales come from product lines the company fully controls. It targets markets worth about $500 million, with adjacent markets above $1 billion, and aims to lift market share from 5% to 15% over the medium term with an EBITDA margin above 10%.

Seven acquisitions have been completed and integrated. At Aldridge Traffic Systems, a turnaround is underway, with active quotes and tenders rising from $5.5 million to $8.0 million. Glowing Structures has generated specifications above $3 million. With fewer than 50% of streetlights converted to LED, FOS sees continued opportunity in the streetlighting market.

Key Takeaways

FY26 was weaker due to softer markets and delayed project awards.
1Q27 sales rose 64% and EBITDA returned to positive territory.
A record $130 million quote pipeline and higher order book support the near-term outlook.
Cost savings and LED streetlighting conversion are key parts of the growth plan.

FAQs

Q: What were FOS Capital's FY26 sales?

A: FY26 sales were $22.4 million, down 12% on the prior year.

Q: How did FOS perform in 1Q27?

A: 1Q27 sales were $7.25 million, up 64%, with EBITDA of $0.55 million.

Q: How large is the quote pipeline?

A: The active quote pipeline reached a record $130 million.

Q: What cost savings has FOS identified?

A: About $2 million in annualised savings, with around $1 million implemented.

Q: What is FOS Capital's market share target?

A: FOS aims to lift market share from 5% to 15% over the medium term.

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