Company Reports

Redox's fiscal 2026 underlying EBIT was AUD 122 million, 10% higher than the prior year. Gross margin of 22.4% was above its 20%-22% long-term average due to product mix shift driving higher margin sales and contributions from newly acquired businesses. Shares fell 5%.

Redox has achieved a phenomenal revenue CAGR of 10% over the three decades to the end of June 2026, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to the end of June 2025, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Redox's share price has risen a phenomenal 86% from a year ago. The market was shaken in 2025 by lower-than-expected earnings and macroeconomic challenges following increased US tariffs.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to end June 2025, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Redox's first-half fiscal 2026 revenue grew 7% from the previous year, including sales from newly acquired businesses. Gross profit margin of 21.5% was flat, despite a mix shift to the US, where margins are lower, as Redox is a relatively new and small player. The shares rose 9%.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to end June 2025, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Chemical distributor Redox's shares are down 40% from the early 2025 peak after the company guided macroeconomic and geopolitical headwinds are likely to weigh on sales demand in the near term.

Redox's first-quarter fiscal 2026 sales volume growth was in line with long-term averages, and selling prices were stable versus the same time last year.

Redox's fiscal 2025 revenue of AUD 1.2 billion was 9% higher than the prior year, on strong volumes, led by the agriculture sector, and contributions from new acquisitions. Shares have risen more than 25% in response, but low share liquidity magnifies the price.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to end June 2024, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Over 50% of Redox's market capitalization has been wiped out since the fiscal 2025 half-year result. On the early June 2025 share price fall of almost 30%, management said this is likely due to the market factoring in a weaker economic outlook.

No-moat Redox first-half fiscal 2025 revenue of AUD 630 million was 9% higher than the prior year, on strong sales volumes despite softness in some industries. Underlying EBIT of AUD 58 million was 14% lower than the prior corresponding period on a soft economic market, resulting in a mix shift to lower-margin product sales, and higher operating expenses incurred with bigger sales volumes.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to end June 2024, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

Redox has achieved a phenomenal revenue CAGR of 12% over the three decades to end June 2024, driven by its strategy of diversifying revenue across new product groups, thereby capturing greater market share in the core markets of Australia and New Zealand, and more recently, expanding the business in offshore markets, including Southeast Asia and the United States.

We initiate coverage on no-moat Redox with a fair value estimate of AUD 4.80 per share and a Medium Uncertainty Rating. Trading at a 14% discount to our fair value estimate, we think the market underestimates the firm’s growth opportunities as the largest distributor of chemicals in Australia, serving about 200 industry subsectors.