IDT Australia Posts 20.3% Revenue Growth and Narrows EBITDA Loss to $436K

Strategic Realignment Drives Revenue Growth

IDT Australia has delivered encouraging interim results for the first half of fiscal 2026, posting a 20.3% increase in revenue to $8.4 million. This growth was primarily fuelled by strong performances in its Active Pharmaceutical Ingredients (API) Manufacturing and Specialty Orals divisions. The company’s renewed focus on these core verticals appears to be paying off, with the API segment nearly tripling revenue and Specialty Orals expanding by over 25%.

Despite a decline in the Sterile Fill vertical, attributed to the timing of customer projects, management expects this segment to normalise in the second half of the year. This division remains strategically important, especially given IDT’s status as Australia’s first mRNA vaccine manufacturer and its role in advanced therapies.

Improved Profitability and Cost Discipline

The company’s EBITDA loss narrowed significantly by $2.3 million to a modest $436,000, with normalised EBITDA (excluding one-off redundancy costs) at a near break-even level of negative $256,000. This improvement reflects not only higher revenues but also a disciplined approach to cost management. Operating expenses fell by 14% year-on-year, driven by organisational restructuring, resource reallocation, and early benefits from digitisation and automation initiatives.

IDT has exceeded its original cost savings target, now expecting annualised savings of $2 million, double the initial goal. These savings stem from reduced headcount, leveraging internal expertise over external consultants, and ongoing process improvements. The company’s focus on operational efficiency is positioning it well to support future growth without significant increases in overheads.

Positioned for Growth in High-Potential Markets

IDT is strategically realigning to capitalise on expanding opportunities in the mRNA and radiopharmaceutical sectors. The global mRNA therapeutics market is forecast to grow at an 18.2% compound annual growth rate to reach US$26.1 billion by 2034, while the radiopharmaceutical market is expected to nearly double by 2029. IDT’s licensed facilities and end-to-end capabilities, from development through to distribution, give it a competitive edge in these fast-growing segments.

Current plant utilisation remains modest, fluctuating between 20% and 35%, indicating significant capacity for scaling production. The company’s leadership team, with deep healthcare industry experience, is focused on leveraging this capacity and a solid pipeline of projects to drive further revenue and margin improvements.

Outlook and Market Implications

Early results from IDT’s strategic reset are promising, with the company on track to return to profitability in the near term. The combination of revenue growth, cost savings, and operational efficiencies suggests a more sustainable business model is emerging. However, the timing-related softness in the Sterile Fill vertical and the impact of one-off costs introduce some uncertainty that investors will want to monitor closely.

Overall, IDT Australia’s interim results reflect a company in transition, successfully navigating operational challenges while positioning itself to benefit from emerging pharmaceutical trends.