Alfabs Australia cuts net debt to millions

• Alfabs Australia filed its quarterly operational update, showing that its net debt decreased to $36.6 million for the period ended June 30.
• The immediate market impact saw the company's share price remain unchanged at $0.26 following the market update.
• The operational improvements are driven by a strategic plan to increase free cash flow up to threefold by the 2028 financial year.

Alfabs Australia (ASX:AAL) released its fourth-quarter update for the 2026 financial year, showing it reduced its net debt to $36.6 million while generating positive free cash flow.

This performance follows an investor day on June 11 where the business outlined capital management goals to address areas requiring operational improvement.

"We have made substantial progress in strengthening the balance sheet during the quarter, with the business generating positive FCF and net debt reducing to $36.6m as at June 2026," said Alfabs Australia CFO Peter White.

The engineering company completed several project milestones during the three-month period, including the commissioning of a continuous miner and the commercialisation of its AX-10 loader.

Management stated that these operational initiatives are part of a broader pathway to eventually reinstate dividend payments to shareholders.

Following the announcement, the Alfabs Australia share price was unchanged at $0.26.

The business indicated that its mining equipment hire division continues to lead its underlying operations.

Alfabs Australia stated that its future growth strategy relies on organic initiatives, bolt-on opportunities, and selective corporate acquisitions.