LED lighting specialist Dialight has reaffirmed its expectations for the year ending March 2026, despite facing continued headwinds in its industrial markets.
The group, which specialises in lighting solutions for hazardous industrial environments, reported marginally lower sales for the five months to 31 August compared with the same period last year.
Sales have been dampened by tariff uncertainty, weaker macroeconomic conditions, and their impact on the company’s core hazardous location sectors.
However, Dialight are still managing to carve out profit growth. Year-to-date adjusted operating profit at the end of August is expected to significantly outpace both the six months to September 2024 ($0.9m) and the six months to March 2025 ($3.2m).
Dialight shares were only 1% higher on Monday, but the positivity surrounding rising profits appears to have already been priced in, given a 100% rally so far in 2025.
The company has benefited from a $1.4m one-off Covid credit from the US Internal Revenue Service, previously disclosed in July’s preliminary results.
Net debt continues to fall. From $17.8m at March 2025, it fell to $15.1m by July before improving further to around $13.0m by the end of August.
These improvements reflect the ongoing benefits of Dialight’s transformation plan, which has delivered margin improvements, overhead cost reductions, and enhanced cash generation.
Despite the challenging operating environment, the board maintains confidence in achieving current market forecasts of $5.7m adjusted profit before tax for the full year.