GALE Pacific Limited (ASX:GAP) FY26 Revenue Falls 9%, But EBITDA and Cash Flow Improve

Sonal Goyal

26 August 2026 12:01 PM AEST

GALE Pacific Limited (ASX:GAP) FY26 Revenue Falls 9%, But EBITDA and Cash Flow Improve

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Key Highlights

Group Revenue declined 9.6% to $155.5 million in FY26, from $172.0 million in FY25, reflecting deliberate inventory efficiency initiatives and softer US consumer demand.
Group EBITDA increased 2.5% to $12.3 million, with the EBITDA Margin expanding 0.9 percentage points to 7.9%, supported by an improved product and customer mix and cost discipline.
Net loss after tax narrowed to $2.9 million, an improvement of $2.3 million on the FY25 loss of $5.2 million.
The Balance Sheet moved to a net cash position of $4.9 million, an improvement of $13.8 million from net Debt of $8.9 million in FY25, supported by Operating Cash Flow of $21.4 million.

GALE Pacific Limited (ASX:GAP), a manufacturer of shade solutions, was trading at $0.10 and unchanged on the day as the company released its financial results for the year ended 30 June 2026 (FY26). The results show a decline in Group revenue alongside improvement in EBITDA, net loss and cash generation compared with the prior year.

FY26 Financial Performance

Group revenue for FY26 was $155.5 million, down 9.6% from $172.0 million in FY25. The company attributed the decline to deliberate inventory efficiency initiatives within GALE and its US retail channels, including closer alignment of retail fulfilment with consumer sell-through, together with softer US consumer confidence, the Middle East conflict, and normalised grain storage coated-fabric volumes in Australia.

Despite the lower revenue, Group EBITDA rose 2.5% to $12.3 million, with the EBITDA margin expanding 0.9 percentage points to 7.9%, supported by an improved product and customer mix and a $7.2 million reduction in operating expenses linked to operating model reform and lower employee and IT costs. The statutory net loss after tax narrowed by $2.3 million to $2.9 million, from a loss of $5.2 million in FY25, after absorbing operating model reform costs and a $3.0 million foreign exchange expense that was largely a non-cash USD/CNY balance sheet revaluation.

Operating cash flow increased to $21.4 million, from $0.1 million in FY25, as disciplined Working Capital Management reduced inventory by $8.6 million to $42.7 million and lowered the working capital to sales ratio to 33.4%, from 35.5% previously. The Group's net cash position improved by $13.8 million, moving from net debt of $8.9 million to net cash of $4.9 million. No final Dividend was declared for FY26.

Regional Performance

In the Americas segment, revenue of $64.3 million was 15% lower and EBITDA of $13.1 million declined 11%, while EBITDA margin improved 0.8 percentage points to 20.4%. The company said US retail Demand remained subdued through the peak season amid softer consumer confidence, prompting a deliberate realignment of retail inventory fulfilment with consumer sell-through. The Americas operating model was reset through organisational simplification, reducing the workforce by approximately 24% and delivering $3.1 million in FY26 cash savings, while the region also expanded its commercial Business development capability and grew E-commerce sales from a developing base.

In the Australia and New Zealand segment, revenue of $76.4 million declined 4%, while EBITDA increased 22% to $11.5 million and EBITDA margin expanded 3.2 percentage points to 15.1%, supported by the region's market positions, improved margins and cost management. Grain storage coated-fabric demand remained above long-term averages despite normalising from an exceptional FY25, and the company noted a long-term paper coating agreement signed with Visy.

In Developing Markets, revenue of $14.8 million was 12% lower and EBITDA of $4.1 million declined 41%, with EBITDA margin at 27.7%. The Middle East delivered growth in the first half before customer orders paused from mid-February through March amid the intensifying regional conflict, before activity resumed from April and revenue returned to prior year levels in the fourth quarter. Europe delivered growth supported by a hot northern hemisphere summer, and horticulture trials commenced with new customers in the Middle East and India.

Outlook

GALE Pacific said FY27 will be the first full year under the Group's refined strategy, with additional resources deployed to accelerate Commercial segment growth and a continued priority on retail category expansion in the US. Chief Executive Officer Troy Mortleman said FY26 was a year of change in which the business was simplified and strengthened through improved margins, cash generation, lower inventory, a leaner operating model and a return to net cash, adding that the focus for FY27 is on restoring profitability through profitable growth and disciplined execution.

Conclusion

GALE Pacific's FY26 results show a decline in Group revenue alongside improvement across EBITDA, net loss and cash generation, with the business moving from a net debt to a net cash position over the year. With regional performance varied, including a pause in Middle East orders during the year's conflict and softer US retail demand offset by cost reduction in that region, the company's FY27 priorities center on Commercial segment growth and US retail category expansion as it looks to build on the operational reset delivered in FY26.

FAQs

Q: What is GALE Pacific's ASX ticker code?

A: GALE Pacific Limited trades on the ASX under the code GAP.

Q: Did GALE Pacific's revenue increase or decrease in FY26?

A: GALE Pacific's Group revenue declined 9.6% to $155.5 million in FY26, from $172.0 million in FY25.

Q: How did GALE Pacific's profitability change despite lower revenue?

A: Group EBITDA increased 2.5% to $12.3 million and the net loss after tax narrowed to $2.9 million, from $5.2 million in FY25, supported by cost reductions and an improved product and customer mix.

Q: Did GALE Pacific pay a dividend for FY26?

A: No final dividend was declared for FY26.

Q: What impacted GALE Pacific's Developing Markets segment?

A: Developing Markets revenue and EBITDA both declined, with customer orders in the Middle East pausing from mid-February through March 2026 due to the intensifying regional conflict, before activity resumed from April.

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