Gale Pacific Ltd

ASX:GAP

Revenue: Group revenue for H1 FY '26 was $82 million, down 9.5% on the prior period due to softer retail demand in the Americas and more disciplined retailer inventory practices.

EBITDA: EBITDA reached $5.3 million, ahead of the $4 million guidance but slightly below last year, reflecting tighter cost controls and early benefits from the U.S. operating model reset.

Cash Flow: Net cash from operating activities was $15.1 million, a clear improvement driven by inventory management and working capital gains, moving the group to a net cash position of $1.9 million versus net debt of $8.9 million a year ago.

Cost Savings: Actions including a 24% U.S. workforce reduction are expected to deliver $3.1 million in FY '26 cash savings and $3.7 million in annualized recurring savings.

Guidance: Given U.S. retail uncertainty, the company is not issuing full year FY '26 performance guidance.

Outlook: Australian retail trading finished summer strongly, but challenging U.S. conditions and Middle East instability are expected to persist.