IDT’s Turnaround Hinges on Sustaining Momentum Amid Leadership Changes
IDT Australia reports a robust 20.3% increase in core revenue and a dramatic narrowing of EBITDA losses, signalling early success from its strategic realignment under new leadership.
- Core revenue up 20.3% to $8.4 million
- EBITDA loss reduced from $2.7 million to $436k
- Operating expenses cut by $1.1 million (14.2%)
- API manufacturing revenue surges 191.4% to $3 million
- Annualised cost savings forecast doubled to $2 million
Strategic Realignment Yields Early Financial Gains
IDT Australia Limited (ASX, IDT) has delivered a notable turnaround in its half-year results for the period ending December 31, 2025. The company’s strategic reset, led by a new executive team, has translated into a 20.3% increase in revenue from its core pharmaceutical manufacturing verticals, reaching $8.4 million. More importantly, the company has sharply reduced its EBITDA loss to $436,000 from a loss of $2.7 million in the previous corresponding period, signalling a clear shift towards operational stability.
Driving Growth Through Core Verticals
The standout performer was the Active Pharmaceutical Ingredient (API) manufacturing segment, which saw revenue soar by 191.4% to $3 million. This surge reflects IDT’s renewed focus on its foundational strengths and its ability to secure contracts with clients possessing robust drug pipelines. Specialty Orals also contributed positively with a 25.8% revenue increase, buoyed by opportunities in radiopharmaceuticals and ongoing work in medicinal cannabis and psychedelics.
Conversely, the Advanced Therapies vertical experienced a 25.7% revenue decline due to project timing, though management expects activity to normalise in the second half of the fiscal year. IDT’s capabilities in mRNA manufacturing remain a strategic asset, positioning the company well to meet growing global demand in this space.
Cost Discipline and Automation Pay Dividends
Alongside revenue growth, IDT has demonstrated strong cost discipline, reducing operating expenses by $1.1 million or 14.2%. This was achieved through resource reallocation, targeted cost-cutting, and early benefits from automation and digitisation initiatives. The company has doubled its forecasted annualised cost savings to $2 million, underscoring the tangible impact of its efficiency programs.
Looking Ahead, Building Momentum and Sustainable Growth
With a solid pipeline across its three business verticals and a sharpened commercial focus on clients capable of awarding follow-on contracts, IDT is optimistic about its near-term prospects. Executive Chair Mark Simari emphasised the company’s commitment to returning to profitability, expanding its customer base, and leveraging its technical expertise to explore new revenue streams. While challenges remain, particularly in normalising advanced therapies revenue and realising new opportunities, the company’s strategic reset appears to be gaining traction.
Bottom Line?
IDT’s early gains from strategic realignment set the stage for a potentially sustainable turnaround, but execution risks remain.
Questions in the middle?
- Will the Advanced Therapies vertical rebound as expected in H2 FY26?
- How quickly can IDT convert its pipeline into profitable contracts?
- What new revenue streams might emerge from ongoing digitisation and automation investments?
