AVADA Group Limited reported an 11% revenue increase to $101.5 million in H1 FY26, driven by strong growth in Queensland and New South Wales and early gains from its business transformation. Despite a statutory loss, adjusted EBITDA improved, setting the stage for a stronger second half.
- 11% revenue growth to $101.5 million in H1 FY26
- Statutory loss after tax of $16.5 million due to $15 million impairment in Victoria
- Adjusted EBITDA improved to $7.1 million reflecting operational efficiencies
- Leadership transition with Managing Director Dan Crowley moving to Executive Director role
- Strong work pipeline and transformation initiatives expected to boost H2 FY26
Revenue Growth and Market Performance
AVADA Group Limited, a leading player in traffic management services across Australia and New Zealand, has reported a solid 11% increase in operating revenue for the first half of fiscal year 2026, reaching $101.5 million. This growth was primarily driven by robust demand in its two largest markets, Queensland and New South Wales, where infrastructure projects and government contracts continue to underpin steady business.
Queensland’s revenue momentum was particularly notable, recovering well after the loss of a major Brisbane City Council contract, while New South Wales experienced strong growth despite some margin pressure from mobilisation costs on new regional contracts. Meanwhile, Victoria remains a challenging environment due to unionised labour mandates affecting government infrastructure projects, prompting AVADA to shift focus towards regional opportunities within the state.
Financial Results and Impairments
Despite the encouraging revenue figures, AVADA reported a statutory loss after tax of $16.5 million for H1 FY26. This was largely influenced by a significant $15 million non-cash impairment related to intangible assets in Victoria, reflecting the goodwill paid for acquired businesses and ongoing operational challenges in that market. Additionally, a $0.6 million provision was recognised for legacy customer receivables, stemming from historical invoicing discrepancies now being addressed following the completion of a new ERP system implementation.
On a positive note, adjusted EBITDA rose to $7.1 million, signalling improved operational efficiency. Management highlighted gains from optimising labour and fleet deployment, alongside cost control measures and the early benefits of a comprehensive business transformation initiative aimed at enhancing margins and resource utilisation.
Transformation and Leadership Changes
AVADA’s transformation agenda remains a central focus, with further operational improvements and margin enhancements expected in the second half of FY26. The company has invested in leadership capability, appointing new executives in strategic execution and commercial roles, and promoting internal talent to strengthen its management team. These moves are designed to support growth and improve pipeline visibility across key markets.
In a significant leadership transition, Managing Director Dan Crowley will step into an Executive Director and Founder role over the next twelve months. Crowley’s shift is part of a structured succession plan, ensuring continuity while allowing new leadership to drive the company forward. His ongoing involvement is expected to provide valuable mentorship and strategic insight during this period.
Outlook and Market Position
Looking ahead, AVADA enters the second half of FY26 with positive momentum and a strong pipeline of work, particularly in Queensland and New South Wales. The company’s commitment to industry-leading safety, governance, and compliance standards continues to be a competitive advantage in securing government and private sector contracts. Refinancing efforts are underway, with multiple offers being considered and completion anticipated in Q3 FY26, which could further strengthen the company’s financial position.
While challenges remain, especially in Victoria and New Zealand, AVADA’s strategic focus on operational efficiency, resource optimisation, and leadership development positions it well to deliver improved financial and operational outcomes in the coming months.
Bottom Line?
AVADA’s transformation and leadership evolution set the stage for a potentially stronger second half, but key risks remain in regional markets and refinancing outcomes.
Questions in the middle?
- How will AVADA’s refinancing terms impact its financial flexibility and growth plans?
- What is the long-term outlook for the Victorian business following the $15 million impairment?
- How effectively will the leadership transition support execution of transformation initiatives?