First phase of transformation strategy complete

Dialight’s FY26 results show that the first phase of its Transformation Plan is now visible in the numbers. Revenue declined 9.0% to $166.9m, reflecting continued pressure in Lighting, but underlying gross margin increased by 340bp to 39.0%, underlying EBITDA rose to $19.8m from $12.9m and underlying operating profit more than doubled to $10.3m. Net bank debt reduced to $1.9m and the Sanmina liability has now been fully settled. The investment case is shifting from balance sheet repair and margin self-help towards delivery of profitable revenue growth.