Adrad Holdings reported an 8.9% rise in FY25 sales revenue to $153.1 million despite a slight dip in EBITDA, while declaring a fully franked dividend and outlining strategic initiatives for FY26.
- Sales revenue increased 8.9% to $153.1 million in FY25
- Pro forma EBITDA declined 2.8% to $17.7 million
- Positive operating cash flow of $13.9 million
- Declared fully franked final dividend of 2.08 cents per share
- Strategic investments in manufacturing and Southeast Asia market expansion
Steady Revenue Growth Despite Challenging Conditions
Adrad Holdings Limited (ASX, AHL), an Australian specialist in heat transfer solutions and automotive aftermarket parts, has released its full year results for FY25, showing a resilient performance amid a tough economic backdrop. The company reported an 8.9% increase in sales revenue, reaching $153.1 million, underscoring the strength and diversification of its business model.
However, this top-line growth came with margin pressures, reflected in a 2.8% decline in pro forma EBITDA to $17.7 million. Statutory net profit after tax also saw a modest decrease, impacted partly by the closure of its New Zealand subsidiary and an impairment of an internally developed R&D asset.
Operational Efficiency and Strategic Investments
CEO Paul Proctor highlighted that FY25 was a year of both growth and strategic adjustment. The company accelerated initiatives aimed at operational efficiency and disciplined cost management. Investments were made to enhance manufacturing processes and expand distribution networks, particularly focusing on Southeast Asia, where a dedicated business development manager was appointed to drive market penetration.
These efforts are already yielding improvements in productivity and resilience, positioning Adrad to enter FY26 with a stronger foundation. The company is also progressing with in-field testing of new alu-fin prototypes designed for above ground, below ground, and on-highway applications, aiming for commercialization within the coming year.
Positive Outlook for FY26
Looking ahead, Adrad’s board and management remain optimistic. The company plans to continue addressing pricing and cost pressures proactively, with ongoing manufacturing enhancements to improve cost efficiency and reduce warranty expenses. The heat transfer solutions segment is targeting growth in the data centre market, where demand for power generation cooling remains robust.
Additionally, expansion plans for the distribution footprint are underway, alongside a strategic push into service work in rail and remote power generation sectors. These initiatives reflect a clear commitment to long-term value creation despite near-term challenges.
Shareholder Returns and Engagement
Adrad declared a fully franked final dividend of 2.08 cents per share, bringing total dividends for FY25 to 3.48 cents per share, representing 50% of statutory net profit after tax. This dividend policy signals confidence in the company’s cash flow and ongoing operational stability.
Investors are invited to engage directly with management during an upcoming webinar scheduled for 21 August 2025, where CEO Paul Proctor and CFO Rod Hyslop will discuss the results and outlook in detail.
Bottom Line?
Adrad’s FY25 results reflect resilience and strategic recalibration, setting the stage for growth and efficiency gains in FY26.
Questions in the middle?
- How will the commercialization of alu-fin prototypes impact future revenue streams?
- What are the expected cost savings from manufacturing enhancements in FY26?
- How significant is the Southeast Asia market expansion to Adrad’s long-term growth?