Business
Third Quarter Trading Update
Dialight plc anticipates exceeding market expectations for Adjusted Operating Profit for the year ending March 31, 2026, driven by ongoing margin improvements, overhead cost reductions, and strong third-quarter profit delivery, despite soft demand trends. The company successfully settled its Sanmina payment for $5.65 million ahead of schedule, contributing to a net debt of $10.3 million as of December 31, 2025, which is expected to further decrease. Significant progress has been made in reducing inventory by $15.9 million to $30.7 million, and non-underlying costs are projected to be approximately $4 million for the year. Disclaimer*
About this update from Dialight Plc
8 January 2026 Dialight plc ("Dialight" or the "Group") Third Quarter Trading Update Further positive profit and cash generation momentum Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy industrial applications publishes the following trading update following the end of the third quarter to 31 December 2025. Demand trends and operating conditions in the Group's end markets have remained soft. The Group therefore remains cautious on the sales outlook. The ongoing margin improvement, overhead cost reduction and higher cash generation announced in the Interim Results in September, have continued to improve with a strong third quarter profit delivery. The continued benefits of the delivery of the Transformation Plan means that the Group now expects to exceed market expectation* for Adjusted Operating Profit for the year ending 31 March 2026 and beyond. On 16 December 2025, the Group paid Sanmina $5.65m in full and final settlement of all payments ahead of schedule, as previously disclosed. The Group net debt closed at $10.3m on 31 December 2025 (30 September 2025: $10.2m) demonstrating positive profit and cash generation that supported the Sanmina advance payment being made. The Group net debt is expected to further reduce by year-end and thereafter. A key contribution to the reduction in debt comes from the improved profit outlook disclosed above as well as good progress in reducing working capital, particularly inventory. Inventory at 31 December is $30.7m (31 March 2025 $46.6m), a reduction of $15.9m. We expect Non-Underlying costs for the year to be approximately $4m (prior period: $21.6m) consisting almost entirely of transformation related activity, which will contribute to ongoing upgraded financial performance. The Group continues to review further operational improvements; a further announcement will be made as and when appropriate. The results for the year ending 31 March 2026 are expected to be released in June 2026. Notes: * Market expectation $8.6m EBITA (Earnings before Interest, tax and amortisation) Contacts: Dialight plc Steve Blair, CEO Tel: +44 (0) 203 404 7757 Mark Fryer, CFO Tel: +44 (0) 203 058 3528 Investec Bank plc (Financial Adviser and Corporate Broker) Christopher Baird / James Rudd Tel: +44 (0) 207 597 5970 LEI: 2138001AD31KKD29Z495 About Dialight: Dialight ...