Sparks - Dialight

Dialight (LSE: DIA) released a trading update for Q326 earlier this month. The company’s ongoing margin improvement, overhead cost reduction and higher cash generation announced in its interim results continued to improve throughout Q3, resulting in strong profit delivery in the period. Due to the continued benefits of the delivery of the company’s transformation plan, management now expect to exceed the markets expectation (EBITA: $8.6m) for adjusted operating profit for the year ending 31 March 2026. Despite the above, demand trends and operating conditions in the group’s end markets have remained soft, with management stating that it remains cautious on its sales outlook.

Group net debt closed at $10.3m (H126: $10.2m) and management expect it to reduce further by year-end, primarily due to the improved profit outlook for the year. Management also guided c $4m (FY25: £21.6m) for non-underlying costs for the year, consisting of almost entirely transformation related activity, which will contribute to ongoing improvements financial performance. Dialight’s full-year results are expected to be released in June 2026.