Globe International’s H1 2025: Revenue Up 3.1%, EBIT Slumps 27%
Globe International reported a 3.1% revenue increase to $98.2 million for the half-year ended December 2025, despite a 27% drop in EBIT due to unexpected US tariffs. The company maintains its interim dividend, signalling steady shareholder returns amid geopolitical challenges.
- Revenue up 3.1% to $98.2 million driven by European growth
- EBIT down 27.4% to $5.2 million, impacted by US tariff hikes
- Net profit after tax fell 28.2% to $3.4 million
- Interim dividend maintained at 10 cents per share, fully franked
- Stable cash position of $19.3 million despite operational headwinds
Revenue Growth Amid Global Uncertainty
Globe International Limited has posted a modest 3.1% increase in revenue for the half-year ended 31 December 2025, reaching $98.2 million. This growth was primarily fuelled by strong performance in its European division, which expanded its sales footprint despite ongoing geopolitical instability. The company’s core brands, including FXD, Salty Crew, and Globe, continued to contribute robustly to the top line.
Profitability Challenges from US Tariffs
However, the earnings before interest and tax (EBIT) tell a more cautious story. EBIT declined sharply by 27.4% to $5.2 million, representing a 5.3% margin on sales, down from 7.5% in the previous corresponding period. Globe attributed this decline largely to the sudden imposition of increased tariffs in the United States, which disrupted operations and squeezed margins in its North American segment. The net profit after tax (NPAT) also fell by 28.2% to $3.4 million, reflecting these headwinds.
Segment Performance and Cash Flow Stability
Segment analysis reveals that Australasia and North America remain the largest revenue contributors, with Australasia generating $48.6 million and North America $35.6 million in sales. Europe, while smaller at $14 million, showed notable revenue growth but delivered a lower EBIT contribution. Despite the profit pressures, Globe maintained a stable net cash position of $19.3 million, supported by strong operational cash flow of $7.4 million and effective working capital management, including a significant reduction in trade receivables.
Dividend Consistency and Outlook
In line with its commitment to shareholder returns, Globe declared an interim dividend of 10 cents per share, fully franked, consistent with the prior year’s payout. This dividend will be paid on 27 March 2026 and reflects the company’s confidence in its underlying cash generation despite the challenging environment. The directors noted no significant events or contingencies post period, suggesting a steady operational footing heading into the second half of the financial year.
Navigating Forward
While Globe International has demonstrated resilience in revenue growth, the impact of US tariffs underscores the vulnerability of its North American operations to external policy shifts. The company’s ability to sustain profitability and dividends amid these pressures will be closely watched by investors. Continued strength in Europe and disciplined cash management will be key to offsetting ongoing uncertainties.
Bottom Line?
Globe’s steady dividend and revenue growth mask underlying tariff-driven profit pressures, setting the stage for a critical second half.
Questions in the middle?
- How will Globe mitigate the ongoing impact of US tariffs on its North American segment?
- Can European growth offset profit declines elsewhere in the coming quarters?
- Will Globe maintain its dividend policy if tariff or geopolitical pressures intensify?
