FOS Capital (ASX:FOS) has provided a trading and acquisitions update for the first half of FY26, reporting expected sales of $12–12.2 million, down from $14 million in the prior corresponding period but above the $11.5 million recorded in H2 FY25.
EBITDA, excluding Aldridge Traffic Systems restructuring costs, is forecast to be $600,000–$700,000, compared with $1.4 million in the prior corresponding period and $700,000 in H2 FY25.
The company said softer trading conditions have extended sales cycles, although it expects half-on-half sales growth to continue in H2 FY26, supported by a $9 million order book, a $110 million quote book, and contributions from the ATS and Glowing Structures acquisitions.
Following the integration of recent acquisitions, management has identified opportunities to reduce operating costs through headcount reductions and import replacement initiatives, with expected annualised savings and gross profit improvements of approximately $1.5 million from Q3 FY26.
FOS also reported solid progress in the turnaround of ATS, acquired in June 2025, with the business on track to achieve profitability by June 2026.
Since the acquisition, ATS has secured $1 million in sales and orders, with active quotes of $5.5 million, completed the sale of $700,000 in non-core assets, transferred product certifications to FOS Lighting, re-engaged key suppliers, and rebuilt inventory.
Restructuring costs to date total $600,000, and 2H26 sales are forecast at $1.5–2 million.