Adrad Holdings Ltd
ASX:AHL
Adrad Holdings Ltd
Adrad Holdings Ltd. manufactures and supplies radiators for motor vehicles. The firm designs and manufactures heat transfer solutions for industrial applications and also manufactures, imports, and distributes aftermarket automotive parts for the Australian and New Zealand markets, as well as for OE customers globally. The firm operates through two segments: Aftermarket, and Original Equipment Market (OEM). The Aftermarket segment includes Australian manufacturers, importers, and distributors of radiators and other heat exchange products for the Australian and New Zealand automotive and industrial aftermarket. The Original Equipment Market (OEM) segment includes designers and manufacturers of OEM industrial radiator and cooling systems across a broad range of market sectors. The firm has approximately 16 warehouse locations in Australia, New Zealand, and Thailand.
Adrad Holdings Ltd. manufactures and supplies radiators for motor vehicles. The firm designs and manufactures heat transfer solutions for industrial applications and also manufactures, imports, and distributes aftermarket automotive parts for the Australian and New Zealand markets, as well as for OE customers globally. The firm operates through two segments: Aftermarket, and Original Equipment Market (OEM). The Aftermarket segment includes Australian manufacturers, importers, and distributors of radiators and other heat exchange products for the Australian and New Zealand automotive and industrial aftermarket. The Original Equipment Market (OEM) segment includes designers and manufacturers of OEM industrial radiator and cooling systems across a broad range of market sectors. The firm has approximately 16 warehouse locations in Australia, New Zealand, and Thailand.
Revenue: Group revenue rose marginally to $77.4 million for the half.
Profit Growth: Underlying EBITDA increased by 13% and underlying NPAT by 20% compared to the prior period.
Interim Dividend: Announced a fully franked interim dividend of $0.0145 per share, up 4% from last year.
Cash Flow: Operating cash flow was down due to a $3 million investment in inventory to support future demand.
HTS Momentum: Strong growth in the Heat Transfer Solutions (HTS) division driven by data center and power generation demand, with improved margins.
Restructuring: Major restructuring costs of $1.1 million are largely complete, with immaterial further costs expected; annual cost savings are expected to be sustainable.
Outlook: Both HTS and Distribution divisions are expected to grow in the second half, supported by a strong order book and increased capacity.
Competitive Advantage: Management emphasized deep in-house engineering expertise, especially for data center cooling, as a key differentiator.
