Synlait Milk anticipates a modest improvement in underlying EBITDA for FY26 but expects a substantial net loss after tax, reflecting ongoing operational challenges and a tough first half.
- Reported EBITDA forecast between -$2 million and $3 million
- Underlying EBITDA expected at $36 million to $41 million
- Reported net loss after tax projected between -$70 million and -$75 million
- Recovery roadmap underway under Acting CEO Leon Fung
- Final FY26 results due 28 September 2026
Synlait Signals Modest EBITDA Improvement Despite Heavy Losses
Synlait Milk Limited (NZX:SML, ASX:SM1) has provided a preliminary update on its financial performance for the year ended 31 July 2026, revealing a forecasted reported EBITDA narrowly straddling break-even at between -$2 million and $3 million. This contrasts with an underlying EBITDA forecast of $36 million to $41 million, indicating significant adjustments for non-recurring or exceptional items.
The company expects a reported net loss after tax in the range of -$70 million to -$75 million, with an underlying net loss after tax between -$19 million and -$24 million. These figures reflect ongoing operational headwinds that weighed heavily on the first half, which recorded a reported net loss after tax of -$80.6 million and an EBITDA loss of -$34.7 million.
Recovery Roadmap and Leadership Transition in Focus
Acting CEO Leon Fung emphasised that while the FY26 results will be far from ideal, they mark an improvement and validate the company’s recovery roadmap aimed at addressing fundamental issues behind Synlait’s poor recent performance. Fung credited the operational progress to the efforts of Synlait’s workforce as the company attempts to stabilise its position.
Fung’s appointment as Acting CEO followed the resignation of Richard Wyeth earlier in 2026, a leadership change that coincided with the company’s ongoing operational and financial challenges.
Final Results Pending Audit and Milk Price Finalisation
The update remains preliminary and subject to the completion of year-end processes including external audit and impairment testing, as well as the finalisation of Synlait’s Milk Price for the 2025/26 season. The company has set 28 September 2026 for the release of its full FY26 results, accompanied by a webcast briefing.
This cautious guidance follows a turbulent period marked by supply chain disruptions and volatile market conditions that have tested Synlait’s resilience. The company’s ability to narrow EBITDA losses and improve underlying profitability will be closely scrutinised by investors looking for signs of sustainable recovery.
Bottom Line?
Synlait’s FY26 update hints at operational progress but underscores the scale of its financial challenges ahead.
Questions in the middle?
- Will Synlait’s recovery roadmap translate into sustainable profitability beyond FY26?
- How will the final milk price settlement impact the company’s net loss figures?
- What strategic moves will Acting CEO Leon Fung prioritise to restore investor confidence?