AVADA Group Limited (ASX:AVD)

AVADA Group Limited reported improved FY26 operating performance driven by strong revenue growth in its largest markets, Queensland and New South Wales, alongside early benefits from its business transformation program. Group revenue rose 14.6% to $209.8 million from $183.1 million in FY25, with Queensland revenue up 6.4% to $112.3 million and New South Wales revenue up 86.7% to $65.1 million, supported by new customers, new locations and regional contract wins; New South Wales also returned to EBITDA profit of $7.1 million from a loss of $3.3 million in FY25. Adjusted EBITDA increased modestly to $13.1 million from $12.8 million, although statutory net loss after tax was $15.2 million, largely reflecting a $15.0 million non-cash impairment of intangible assets in the Victorian business amid ongoing market challenges. The company said costs were ahead of expectations due to mobilisation for new projects, one-off transformation and capability uplift expenses, and fuel cost escalation in the second half, but these costs were seen as supporting future profitable growth. AVADA also highlighted improved operational disciplines, stronger leadership capability, refinancing and expansion of banking facilities with CBA in April 2026, and a broadly positive industry outlook underpinned by infrastructure investment, with management focused in FY27 on improving operational and commercial resilience to deliver profitable growth and long-term shareholder value.