FOS Capital Ltd (ASX:FOS)

FOS Capital Limited provided an update on their 1H26 trading and acquisitions. The company expects sales for the first half of FY26 to range between $12-12.2 million, a decrease from the previous corresponding period's $14 million but an increase from $11.5 million in 2H25. EBITDA for 1H26 is projected to be between $600,000 and $700,000, lower than 1.4 million in the previous period. The company faces soft trading conditions but anticipates sales improvement in 2H26, aided by their acquisition of Aldridge Traffic Systems (ATS) and Glowing Structures. FOS has identified operational cost reduction opportunities through headcount reduction and import replacement, aiming for $1.5 million in annual savings. The ATS acquisition, which required turnaround, is progressing well and is on track for profitability by June 2026. Glowing Structures, acquired in May 2025, has been integrated into FOS but had no significant earnings impact in 1H26. However, it generated $2 million in orders, expected to contribute to sales in 2H26. FOS aims to increase its market share from 5% to 15% in the medium term through organic growth and strategic acquisitions.