Accsys H1 FY26: EBITDA jumps 160% as Accoya demand and JV momentum kick in
Accsys Technologies has delivered a punchy first half for the six months to 30 September 2025. The headline is profitability: adjusted EBITDA rose 160% to €10.4 million, lifting the margin to 11.6% and nudging close to management’s Phase 1 FOCUS target of 12%. Total Accoya sales volumes including the US joint venture climbed 22.4% to 38,618 m³, with North America the standout.
There is still a small statutory loss, but the direction of travel is clearly improving. Below I break down what moved the numbers, why it matters, and what to watch next.
Key numbers at a glance
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Group revenue | €76.1m | €72.2m | +5.4% |
| Aggregated revenue (Group + 60% of JV) | €89.9m | €74.1m | +21.3% |
| Gross profit | €23.2m | €22.2m | +4.5% |
| Gross margin | 30.5% | 30.7% | -20 bps |
| Adjusted EBITDA | €10.4m | €4.0m | +160% |
| Adjusted EBITDA margin | 11.6% | 5.4% | +620 bps |
| Period end net debt | (€39.8m) | (€40.2m) | €0.4m better |
| Group sales volumes | 30,575 m³ | 30,372 m³ | +0.7% |
| JV sales volumes | 8,043 m³ | 1,181 m³ | n/m |
| Total Accoya volumes | 38,618 m³ | 31,553 m³ | +22.4% |
Definitions: adjusted EBITDA is operating profit before exceptional items, depreciation and amortisation, and includes Accsys’ 60% share of the JV’s EBITDA. The aggregated revenue metric is Group revenue plus 60% of JV revenue.
What drove the profit step-up
- Healthy demand and pricing: robust Accoya demand with a maintained premium positioning. Average selling prices increased, with price rises implemented in the US and UK.
- Cost discipline: €2.3 million of savings from the FY24 transformation programme were retained, and underlying other operating costs fell year on year after the Hull closure.
- JV sharp improvement: the Accoya USA JV moved to a small EBITDA loss of €0.3 million, a €4.0 million improvement year on year, as Kingsport scales up.
- Licences and royalties: €2.1 million received from the JV (H1 FY25: €0.5 million), helped by completion of the Kingsport performance test and commercial operation.
One caveat is gross margin, which slipped 20 bps to 30.5%, mainly because North American sales moved from the Group into the JV in the comparable period and US sales typically carry higher average prices.
Accoya USA JV: volumes accelerating and near break-even
North America is the growth engine. Sales volumes here were up 61.4% to 8,043 m³, driven by stronger distributor sell-through and better product availability. Three new distributors were added, including the first direct distributor in Mexico, which should contribute in H2.
The JV is close to EBITDA break-even for the half, posting only a €0.3 million loss as operations ramp. Management expects the JV to be EBITDA positive for the full year, notwithstanding the 10% US tariff on imported lumber effective 14 October 2025. The company says actions have been taken to manage that impact and it is monitoring developments.
For context, Group revenue growth understates the true commercial momentum because prior period North American sales are now booked in the JV. On a like-for-like basis excluding those prior NA sales, Group revenue grew 23%.
Regional mix and product trends
- UK & Ireland volumes: 8,676 m³, up 13.8%.
- Rest of Europe: 8,892 m³, up 22.2%, with Germany and Benelux highlighted as stronger spots.
- Rest of World: 3,453 m³, up 28.3%.
- Accoya for Tricoya: 9,554 m³, up 6.4%.
Operations are running well. At Barry, capacity for Accoya Color has been more than doubled with an extra shift and added storage. Arnhem built inventory ahead of the October maintenance stop to support Q3.
Cash flow, debt and refinancing
Operating cash flow was €8.0 million with a 75% conversion rate, in line with the FOCUS Phase 1 target. Inventory increased to support growth and the maintenance stop, so free cash flow came in at €5.1 million, lower year on year.
Net debt reduced to €39.8 million at 30 September 2025, down from €42.6 million at 31 March 2025. The leverage ratio improved to 2.1x from 2.5x. After period end, Accsys refinanced with new €55 million facilities shared between ABN AMRO and HSBC, comprising a €20 million term loan and a €35 million revolving credit facility, maturing in October 2028 with an option to extend to 2029. Management describes the terms as improved and liquidity as strengthened.
The P&L is still loss making at the bottom line, albeit much improved: an underlying and statutory loss before tax of €1.4 million versus a €26.2 million statutory loss last year that included large exceptional charges. There was a non-cash €1.134 million fair value loss on the embedded derivative in the convertible loan notes, and a small tax credit from a €0.7 million refund, resulting in a basic loss per share of €0.01.
Why this matters for shareholders
- Proof of premium pricing power: Accsys pushed through price increases in the US and UK and still grew volumes well ahead of the broader building materials market.
- JV turning the corner: Kingsport’s ramp is the biggest swing factor in the equity story. Near break-even at H1 and expected positive EBITDA for the year are meaningful milestones.
- Balance sheet de-risking: lower net debt, a better leverage ratio and a fresh €55 million facility with two banks materially reduce near-term financing risk.
- Strategy on track: the 11.6% adjusted EBITDA margin is closing in on the 12% Phase 1 FOCUS target, with management reiterating full-year adjusted EBITDA in line with expectations.
Balanced view: the positives and the watch list
What I like
- Strong like-for-like revenue growth of 23% when adjusting for the North America transition to the JV.
- €4.0 million year-on-year improvement in JV EBITDA and €2.1 million of licence fees and royalties, showing the model’s operating leverage.
- Disciplined cost control and continued deleveraging to €39.8 million net debt.
What to keep an eye on
- Tariff headwind in the US: a 10% tariff on imported lumber from 14 October 2025 is a new variable. Management is mitigating, but it is a moving part.
- Gross margin mix: at 30.5% it remains above the 30% strategic target, but the shift of higher priced NA sales into the JV trims Group margin optics.
- Non-cash volatility from the convertible loan notes’ embedded derivative, which produced a €1.134 million fair value loss this half.
- Working capital build to support growth and maintenance timing. Inventory discipline will matter if market conditions wobble.
Outlook and my take
Trading is described as robust, with Accsys growing market share across regions. Sales are accelerating in North America and the Board expects full-year adjusted EBITDA to be in line with its expectations, with further progress towards strategic targets. The JV is expected to be EBITDA positive for the year.
In my view, this is a high-quality set of interim results. The group is executing the FOCUS plan, proving its pricing power and scaling the US asset. There is more to do to convert strong operating progress into bottom-line profits and cash, but the direction is clear. For investors, the key catalysts into H2 are continued NA volume momentum, confirmation of JV EBITDA positivity, and disciplined working capital as growth continues.
