Brisbane-based COSOL (ASX:COS) reported a challenging first half for the 2026 financial year, posting an underlying EBITDA of $3.5 million on revenue of $49.6 million for the six months ended Dec. 31, 2025.
The figures represent a downturn compared to the previous corresponding period, with group revenue falling by 14.1% and underlying EBITDA dropping by 57%.
The board has opted not to declare a dividend for the period.
The company attributed the lacklustre performance to several converging factors, including the conclusion of two major contracts—one through project completion and another via early termination—alongside the under-utilisation of personnel and a softening sales pipeline.
The most substantial hit occurred within the asset management services division, where revenue plummeted by $5.7 million (26.3%) due to its heavy exposure to the mining and energy sectors.
Consulting revenue also saw a 6.8% decline, impacted by the loss of a managed services client and delays in new project commencements.
Managing Director Scott McGowan described the results as "disappointing" but noted they align with previous market guidance.
To stabilise the business, COSOL has initiated a remedial program focusing on executive leadership changes—including appointing CFO Anthony Stokes as COO—and a restructure of Australian sales operations.
A "costs out" program has already stripped $1 million in annualised expenses.
Despite the slow start, management remains optimistic, flagging a stronger second half for FY26 driven by increased sales activity recorded in late 2025.
At the time of reporting, COSOL's share price was $0.24.