Redox Limited posted a strong FY26 with record revenue of $1.33 billion, a 19.2% jump in statutory net profit, and a 4% dividend increase, while announcing a board leadership transition.
- Revenue up 6.9% to $1.33 billion
- Statutory net profit rises 19.2% to $91.9 million
- North American sales surge 33.8% past $100 million
- Final dividend increased 4% to 6.5 cents per share
- Chair Ian Campbell to retire, succeeded by Mary Verschuer
Record Revenue and Profit Growth
Redox Limited (ASX:RDX) delivered a robust financial performance for the year ended 30 June 2026, posting record revenue of $1.33 billion, up 6.9% on FY25. Despite ongoing geopolitical tensions and supply chain disruptions, statutory net profit after tax surged 19.2% to $91.9 million, supported by a 0.8 percentage point improvement in gross margin to 22.4% and a 9.9% rise in underlying EBITDAFX to $134 million. Earnings per share climbed 19.2% to 17.5 cents.
The company’s diversified business model and disciplined execution underpinned the strong result amid subdued demand in parts of the chemical and ingredient distribution sector. North American sales were a standout, soaring 33.8% to exceed $100 million for the first time, driven by new customer wins, portfolio expansion, and increased presence across the US and Canada.
Balance Sheet Strength and Dividend Policy
Redox closed FY26 with an exceptionally strong balance sheet, holding $123 million in cash and cash equivalents and maintaining zero net debt. The company’s net working capital ratio remained stable at 31.4% of revenue, within its historical range. The Board declared a fully franked final dividend of 6.5 cents per share, bringing total dividends for FY26 to 13 cents, a 4% increase on the prior year and representing a payout ratio of 74%, comfortably within the company’s 60%-80% policy.
Cash flow from operations improved significantly to $87.8 million, up $40 million from the prior year, reflecting higher customer receipts aligned with revenue growth and timing of tax payments. The company also invested in acquisitions, technology, and people to support its growth ambitions.
Sustainability and ESG Progress
Redox continued to embed sustainability across its operations, advancing climate initiatives such as electrification of warehouse equipment, rooftop solar installations, and procurement of 100% renewable electricity at key sites. The company voluntarily reported greenhouse gas emissions and participates in industry stewardship programs including drumMUSTER and Agrecovery.
Social responsibility remained a focus, with workforce diversity improving slightly to 38% female representation overall and 47% excluding warehouse roles. Redox was recognised as a Best Place to Work in Australia, New Zealand, and the US. The company also launched a mental health toolbox program and partnered with Western Sydney University to sponsor a scholarship for female chemistry students.
Governance and Leadership Changes
After 17 years as Chair, Ian Campbell announced his retirement at the upcoming AGM, with Mary Verschuer set to succeed him. The Board also appointed Sheila Lines as a new Non-Executive Director, effective 1 September 2026. The People and Safety Committee, chaired by Verschuer, oversaw remuneration reviews, safety initiatives, and diversity programs during the year.
Executive remuneration aligned with the company’s strong performance, with fixed pay increases for key executives and STI payments at 95% of target. Long-term incentive grants remain tied to total shareholder return and earnings per share hurdles, with the FY24 LTI grant vesting at 100% following TSR performance in the 82nd percentile relative to the ASX 300.
Operational Highlights and Risk Management
Redox operates across Australia, New Zealand, North America, and Asia Pacific, sourcing from over 1,200 suppliers and serving more than 8,700 customers across approximately 170 industries. The company’s proprietary ERP and CRM platform, Redebiz, supports its complex regulatory and commercial environment.
Key risks identified include fluctuations in customer demand, supply chain disruptions, competitive pressures, and IT system vulnerabilities. The company maintains comprehensive risk management frameworks, robust cybersecurity measures, and compliance programs to mitigate these risks.
Looking ahead, Redox is well positioned to capitalise on opportunities in the fragmented chemical distribution sector, leveraging its strong balance sheet, expanding geographic footprint, and focus on specialty chemicals and value-added services.
Bottom Line?
Redox’s FY26 results reflect resilience and strategic execution, but sustaining growth amid geopolitical and supply chain uncertainties remains the challenge ahead.
Questions in the middle?
- How will Redox leverage its strong balance sheet to accelerate growth in North America and other emerging markets?
- What impact might ongoing Middle East conflicts and supply chain disruptions have on pricing and margins in FY27?
- How effectively will new board appointments influence Redox’s governance and strategic direction in a rapidly evolving sector?