DDR +8.64%: delivered a strong start to FY26, with margins and earnings improving meaningfully as disciplined cost control continued to support the business.
- Gross revenue: $1.27bn, +13.4% y/y
- Gross operating profit: $120.9m, +19.3% y/y
- Gross margin: 9.5% vs 9.1% y/y
- EBITDA (ex one-offs): $58.2m, +32% y/y
- NPBT: $47.3m, +45.5% y/y
The result was driven by solid demand across endpoints, software and data centre refresh activity. There was also strong momentum in AI-related revenue, which has already exceeded $20m year-to-date and is expected to accelerate further into 2H.
Importantly, operating costs were held flat relative to revenue, helping margins expand meaningfully and reinforcing the benefits of scale within the distribution model.
Management did flag that endpoint growth is expected to moderate into 2H as higher vendor pricing begins flowing through to customers, likely impacting unit demand. However, headline revenue expectations remain strong, supported by ongoing AI infrastructure spending and SME technology refresh cycles.
