Earnings release
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19 February 2026 CONNECTING MARKETS CREATING OPPORTUNITIES Redox reports growing sales and stronger profit in 1H26 Redox Ltd (ASX: RDX, ’Redox’ or ‘the Company’), a leading supplier and distributor of chemicals, ingredients and raw materials hereby announces its financial results for the half-year ended 31 December 2025 (1H26). Key 1H26 Financial Highlights (versus 1H25): • Revenue of $674m, up 6.6% • Gross profit of $145m, up 5.9% • Gross profit margin of 21.5%, remaining resilient • Net Cash and Cash equivalents of $145m (zero net debt) • Conversion margin of 44.7%, down 0.5ppts • Interim dividend of 6.5 cents per share Financial and Operational Overview Sales revenue rose 6.6% to $674 million in 1H26 against the prior corresponding period (PCP), a solid result driven by organic growth supplemented by recently acquired businesses. Industrial sales jumped 29% due to power transmission and generation sales in APAC and customer wins in North America. Food sales were also robust on the back of strong customer conversions and share of wallet gains. Gross profit increased 5.9% to $145 million, as product mix improved and buoyant growth in US sales. Underlying operating expenses increased $6 million in 1H26 to $85.8 million, spread between volume-driven expenses and an increase in administration costs, which were primarily staff-related. The increase in administration costs also included $2.4 million of other expenses driven by additional warehouse lease amortization and higher tax/ climate reporting and compliance costs. Underlying NPATFX increased 1.0% to $41.3 million in 1H26 while the gross profit margin of 21.5% remained resilient, demonstrating the strength of our operating model and cost discipline. After-tax ROIC improved 0.5 percentage points to 14.0% as the company deployed more of its cash to fund acquisitions. Cash flow from operations was strong in the first half, increasing $50 million to $62 million. This equates to a free cashflow conversion of 91.4%, up from 19.7% in 1H25. The increase in cashflow was driven in-part by lower inventory at period end. As a result, Redox finished the half with a net cash position of $145 million. Net working capital as a percentage of revenue improved 3.7 percentage points to 29.0% in the first half, driven by lower inventory. Redox expanded its sales team to 200 representatives in 1H26. The expanded team continues to leverage strong client relationships, in the process identifying new business and sales opportunities. Australian revenue increased 6.2% in 1H26 versus PCP while North American sales jumped by 33.2% on PCP driven by the expansion into new industry sectors and additional active products, particularly in the Industrial and Food segments. Dividend The Board has declared an interim dividend of 6.5 cents per share, payable on 25 March 2026. This dividend represents a payout ratio of 78% which is in the range of Redox’ stated policy of distributing 60% to 80% of net profit after tax. Chief Executive Officer and Managing Director Raimond Coneliano said: “Redox reported solid results in the first half of 2026 which was a challenging period for chemical and ingredient distributors worldwide. Redox increased its profitability and maintained resilient gross margins in the half. Encouragingly our conversion margin remained competitive against our global industry peers.
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Having been fully integrated into Redebiz, our recent acquisitions continue to perform well and are all contributing strongly to the business. In particular, Molekulis, our distributor of transformer oils to the power generation and transmission industry, drove significantly higher Industrial sales during the half. Our North American business also performed well during the period with sales 33% above the prior corresponding period. This business is still growing and its performance is expected to be less variable as it continues to mature. Redox remains financially strong, with zero net debt and is well placed to benefit from an improving environment to capture growth across its broad range of product segments and geographies. We remain focused on organic growth, disciplined cost management, while pursuing strategic M&A, particularly in North America. While market conditions remain dynamic, the chemical and ingredients distribution sector continues to offer compelling structural growth opportunities, and Redox is well positioned to capitalise on them. “ - ends - This announcement is authorised for release by the Board of Redox Limited. For enquiries, please contact: Investor Relations Howard Marks Automic Markets +61 402 438 019 howard.marks@automicgroup.com.au About Redox Established in 1965, Redox markets a range of more than 1,000 different chemicals, ingredients and raw materials, sourced from leading manufacturers supplied to clients throughout Australia, New Zealand, Malaysia and North America. Our dedicated team of more than 400 employees operate from 19 locations across the globe, with more than 100 convenient storage locations. A growing business with sales revenue of over $1.24 billion in the financial year 2025. Redox looks for long term partnerships, where shared values and common goals align for mutual benefit. Our relationships are open, innovative and based on teamwork. https://redox.com Forward Looking Statements Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of the Company, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.