Key Highlights

• REDOX recorded FY26 Revenue of $1.33 billion, up 6.9% year-on-year, marking a new record for the company.

• North American revenue surpassed $100 million for the first time, a 33.8% increase, reflecting new customer wins and product range expansion.

• The company maintained a zero-net-debt position with $123 million in cash and short-term deposits at year end.

Shares of REDOX Ltd (ASX:RDX), a leading distributor of chemicals, ingredients, and raw materials, were trading at A$3.39 during the session on 05 November 2026, down 0.59%. The broader S&P/ASX 200 (XJO) advanced 2.61%, adding 230.60 points to reach 9,065.10, while the S&P/ASX 200 Industrials index (XNJ) gained 2.21%, rising 182.50 points to 8,422.80. Overnight gains on Wall Street, buoyed by a decisive Democratic victory in the U.S. midterm elections, supported sentiment across global Equity markets. Established in 1965, REDOX markets more than 1,000 different chemicals and raw materials sourced from leading manufacturers, supplying clients throughout Australia, New Zealand, Malaysia, and North America through a team of more than 400 employees across 19 locations.

Record Revenue and Margin Expansion in FY26

On 20 August 2026, REDOX released its financial results for the year ended 30 June 2026. The company reported record revenue of $1.33 billion, reflecting a 6.9% increase over the prior year. Gross Profit climbed 11.0% to $298 million, with the Gross Profit Margin improving by 0.8 percentage points to 22.4%. The margin improvement was attributed to a more favourable product mix in the Asia-Pacific region and a strengthening margin profile in North America. Underlying EBITDAFX rose 9.9% to $134 million, while statutory net profit after tax (NPAT) increased 19.2% to $92 million.

North American Milestone and Regional Performance

A notable development in FY26 was REDOX's North American Business exceeding $100 million in revenue for the first time, representing a 33.8% year-on-year increase. This growth was driven by new customer acquisitions, an expanding product range, and increased share of wallet across the Industrial, Food, Human Health, and Personal Care segments. Australian revenue rose 6.1% to $1.12 billion, supported by growth across several of the company's largest industry segments and contributions from Molekulis, a business that has been fully integrated onto REDOX's proprietary platform, Redebiz. New Zealand revenue declined 4%, primarily reflecting softer Demand in the Human Health segment.

Cash Position and Dividends

Operating cash flow increased by $40 million to $88 million, with free cash flow conversion improving by 21.8 percentage points to 62.5%. After-tax return on invested Capital (ROIC) rose by 1.1 percentage points to 14.6%. The company maintained a zero-net-debt position with $123 million in cash and short-term deposits at year end. The Board declared a final Dividend of 6.5 cents per share, bringing total FY26 dividends to 13.0 cents per share, up 4% and representing a Payout Ratio of 74% of NPAT.

About the Company

REDOX is a chemical distribution company headquartered in Australia with operations spanning four countries. The company sources over 1,000 chemicals, ingredients, and raw materials from leading global manufacturers for distribution to industrial clients. Its end markets include food processing, personal care, water treatment, agriculture, coatings, and construction. The company listed on the ASX in 2023 and has been growing both organically and through acquisitions to expand its geographic footprint and product portfolio.

Sector Context

The Australian industrials sector benefited from a broadly positive session on 05 November 2026. The S&P/ASX 200 Industrials index rose 2.21% on the back of overnight U.S. market gains. Chemical distribution businesses tend to be influenced by global trade dynamics, raw material pricing, and currency movements. Within this sector, companies with geographic Diversification and recurring customer relationships are positioned to benefit from infrastructure spending and Manufacturing activity in both domestic and international markets.

Risks

Key risks for REDOX include exposure to foreign exchange fluctuations, particularly given the growing contribution from North American operations. Commodity and raw material price Volatility could affect gross margins. Softening demand in certain segments, as evidenced by the New Zealand decline, presents an ongoing challenge. Additionally, the company's acquisition-driven growth strategy carries integration and execution risks.

Catalysts on Watch

Investors may watch for further expansion in North America, where REDOX has demonstrated accelerating growth momentum. The continued integration and performance of acquired businesses such as Molekulis could provide additional revenue upside. Progress on the company's conversion margin and cash flow generation will also be relevant for future periods.

Looking Ahead

REDOX's FY26 results reflected a company achieving record revenue milestones while expanding margins and maintaining a debt-free balance sheet. The North American business crossed the $100 million revenue threshold, underscoring the company's international growth trajectory. With $123 million in cash reserves and a disciplined capital allocation approach, management has indicated the company is positioned to pursue further growth opportunities in chemical distribution across its operational geographies.