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Highlights

  • Dialight reports sales marginally lower in the five months to 31 August 2025 due to tariff uncertainty and softer demand in hazardous end markets.

  • Adjusted operating profit expected to be significantly ahead of both H1 FY2025 (USD 0.9m) and H2 FY2025 (USD 3.2m), supported by margin improvements, cost reductions, and a USD 1.4m IRS credit.

  • Net debt reduced to approximately USD 13.0m at 31 August 2025 from USD 17.8m at 31 March 2025.

Dialight plc (LSE:DIA.L), a global provider of LED lighting solutions for heavy industrial applications, has issued a trading update covering the five months ended 31 August 2025. The update highlights soft demand conditions in the Group’s end markets, alongside improved profitability and cash generation driven by its Transformation Plan.

Trading Performance

Sales in the period were marginally lower compared with the prior year. The company attributed this to ongoing tariff uncertainty, macroeconomic pressures, and weaker demand across hazardous end-market sectors. Despite this, Dialight confirmed that products manufactured at its Ensenada facility have remained tariff-free for almost all of the first half of the calendar year, supporting stability in supply.

The Group reported positive progress in profit and cash flow. Year-to-date adjusted operating profit to the end of August 2025 is expected to be significantly ahead of the six months to 30 September 2024 (USD 0.9 million) and the six months to 31 March 2025 (USD 3.2 million). This performance reflects improved margins, reduced overhead costs, and higher cash generation under the Transformation Plan.

The current year results also include a one-off credit of USD 1.4 million from the US Internal Revenue Service related to Covid relief, as disclosed with the Group’s preliminary results in July 2025. In addition, foreign exchange gains of approximately USD 0.8 million provided further benefit during the period.

Net debt was USD 15.1 million at the end of July 2025 and improved to approximately USD 13.0 million as of 31 August 2025, compared with USD 17.8 million at 31 March 2025.

Outlook

Looking ahead, the Group remains cautious on the sales outlook for the full financial year to 31 March 2026, given the persistence of tariff uncertainty and challenging macroeconomic conditions. Nonetheless, the Board confirmed confidence in meeting current market expectations for the year, which it believes to be an adjusted profit before tax of USD 5.7 million.

The Group expects to provide a further update in October 2025 following the completion of the first half to 30 September 2025.