Skellerup Holdings Ltd (NZSE:SKL) (Q1 2026) Earnings Call Highlights: Record Revenue and …

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Fri, February 13, 2026 at 10:06 AM GMT+9 3 min read

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Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Skellerup Holdings Ltd (NZSE:SKL) reported record revenue, operating earnings, net profit after tax, and cash flow for the first half of FY26.

The company achieved a 16% increase in EBIT and a 20% increase in net profit after tax compared to the prior comparative period.

The interim dividend was increased to $0.10, up 11% from the prior comparative period.

The industrial division saw strong growth in potable water and wastewater applications, particularly in the US market.

The agri division experienced significant growth, with a 21% increase in revenue driven by strong demand for dairy products and new product introductions.

Negative Points

Geopolitical uncertainty persists, making forecasting difficult for Skellerup Holdings Ltd (NZSE:SKL).

The automotive sector faced weaker demand in the European market, impacting the industrial division.

Health and hygiene sales were negatively affected by a key customer's production pause.

The company faces ongoing challenges from US trade tariffs, with an estimated impact of $1 million in the first half.

Increases in raw material costs and lower overhead recoveries impacted margins in the footwear group.

Q & A Highlights

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Q: How should we think about the annualizing of the growth in the dairy sector, particularly in international markets like North America and Europe? A: Graham Leeming, CEO: We have definitely gained market share in the US and Europe. While there are multiple nodes in the supply chain that can obscure visibility, we are confident in our market share gains. We’ve also entered new markets like France and Eastern Europe. The growth reflects our investment in product development, allowing us to complete projects faster than before.

Q: Given the growth in agri, how should we think about the seasonality of earnings going forward? A: Graham Leeming, CEO: We are cautious about the second half. While geopolitical factors and tariff costs are concerns, we expect a modest increase over the second half of FY25. The New Zealand dollar’s strength and additional investments in personnel may impact earnings. Traditionally, the second half is stronger due to seasonality, but we expect the gap to narrow slightly.

Q: What drove the strong acceleration in the second quarter, resulting in a 20% impact growth for the first half? A: Graham Leeming, CEO: The second quarter is usually our weakest, but this year it was stronger due to continued strong demand for potable water products in the US and dairy rubberware products. These were the biggest contributors to the second quarter’s performance.

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Q: Can you explain the cautious guidance for the second half, given the strong first-half performance? A: Graham Leeming, CEO: We are cautious due to the strong first-half performance in the dairy sector, which might have pulled forward some demand. Additional costs from tariffs and investments in growth initiatives also contribute to our cautious outlook. We are mindful of potential currency impacts and geopolitical uncertainties.

Q: Can you provide an update on the foam business in Europe and other agri products like calf feeding clusters? A: Graham Leeming, CEO: The foam business in Europe is progressing, but conversion is slower than expected, pushing the break-even point to the fiscal year’s end. For agri products, we are launching a high-performance liner in a single-use shell in the US, which has received positive feedback. However, the development of clusters is still in early stages and won’t contribute to the second half results.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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