In its FY2026 full-year results presentation, dated 17 August 2026 and covering the year ended 30 June 2026, GWA Group outlined a resilient result, delivering revenue and earnings growth despite soft market conditions across Australia and the United Kingdom.
The bathroom fittings and fixtures group recorded normalised Group Revenue of $422.3m, up 0.9%, with normalised EBIT rising 2.5% to $78.2m and normalised NPAT increasing 4.9% to $48.8m. Group volume grew 2.3%.
For shareholders, the headline takeaway was the dividend lift. GWA raised fully franked dividends 6.5% to 16.5c per share, underscoring a defensive, dividend-growing performer that held margins through a subdued building cycle.
FY26 group financial results at a glance
Management framed the year as a “controlling the controllables” story, with disciplined cost management supporting margin expansion. Normalised EBIT margin widened 0.3pp to 18.5%, reflecting the leverage of increased revenue through the income statement.
| Metric (Normalised) | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | $422.3m | $418.5m | +0.9% |
| EBITDA | $93.8m | $92.0m | +2.0% |
| EBIT | $78.2m | $76.3m | +2.5% |
| EBIT Margin | 18.5% | 18.2% | +0.3pp |
| NPAT | $48.8m | $46.5m | +4.9% |
| EPS | 18.7c | 17.5c | +1.2c |
On a statutory basis, NPAT rose more strongly at 10.6% to $48.0m, driven by lower significant items in the period. Management noted the following on the half-year split:
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H2 FY26 revenue eased 2.7% versus H1, reflecting softer Australian and UK conditions.
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Despite the softer second half, normalised EBIT margin held flat at 18.5% across both halves, a direct result of cost discipline.
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Regional performance: Australia steady, NZ and UK grow in local currency
GWA’s geographic base cushioned cyclical weak spots across its three key markets. Australia delivered $353.6m in revenue, up 0.9% and representing 84% of the Group. New Zealand grew 1.3% to $31.1m (up 7.1% in local currency, 7% of Group), while the United Kingdom rose 0.8% to $37.6m (up 1.3% in local currency, 9% of Group).
Within Australia, disciplined execution delivered growth across all states except Victoria:
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NSW: +2.7% ($117.8m), led by Merchant, Multi-Residential and Win The Plumber.
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WA: +10.6% ($50.6m), the strongest performing state.
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QLD: +0.8%; SA: +1.4%.
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VIC: −6.3% ($86.3m), impacted by weaker Care, Commercial and Merchant demand.
Why cash conversion and the buyback matter to investors
Cash conversion measures how much of a company’s reported earnings translate into actual cash. GWA recorded conversion of 76% in FY26, below its 80–85% target range. Management detailed that this was a deliberate, proactive pull-forward of stock purchases to defer the impact of product cost increases, and that this timing is expected to reverse in FY27, with conversion anticipated to return above the target range.
Group Free Cash Flow came in at $25.0m (FY25: $54.0m), driven by working capital timing rather than any deterioration in underlying performance. The balance sheet remained solid, with net debt of $127.9m and leverage of 1.6x, within the 1.0–2.0x target range. Banking facilities totalled $205m with $77m of headroom.
The company also returned capital to shareholders, completing $25m of a $30m on-market share buyback program to 30 June 2026. A final dividend of 8.5c per share fully franked was declared.
Innovation pipeline: leak protection and new Caroma ranges
The presentation detailed a new product pipeline positioned as future growth drivers. The standout was Leak SmartShield™ by Caroma, a Phyn-powered residential leak protection solution that GWA noted is early-stage and in-market.
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Leak SmartShield™ by Caroma — Phyn-powered leak protection featuring AI leak detection, automatic water shut-off, real-time insights and instant alerts.
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Market opportunity: approximately 5M serviceable dwellings, with leaks driving around 20% of water-related insurance claims and an estimated $1.6B in annual claim costs.
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Caroma Riviere Collection — a new hero range positioned for architects, volume builders and renovators.
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Caroma Forma Refresh — an exclusive range with a key merchant.
This pipeline offers optionality beyond the core fittings market and aligns with the company’s “Water Solutions” strategic horizon.
Strategy evolution and Win the Plumber momentum
Management outlined a refreshed strategy framework built on “Three Horizons”: Horizon 1 covering Fittings and fixtures, Horizon 2 focused on Plumber Obsession, and Horizon 3 targeting Water Solutions.
The clearest execution proof point was the Win the Plumber initiative. GWA recorded over 30,000 plumber technical interactions, up 15% from 26,000 in FY25, with plumber bundle and spares sales rising 3.3%. Delivery in full, on time (DIFOT) was maintained above 90%, Net Promoter Score continued to improve, and both Trade Hub 2.0 and Plumbot went live during the period.
Deepening these trade relationships supports a more defensible, recurring revenue base over time.
FY27 outlook and key assumptions
Looking ahead, management set out balanced forward guidance against a softer Australian market backdrop, while noting improving multi-residential and residential completions. Key FY27 assumptions include:
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Australian building activity forecast at −2% (excluding data centres, BIS Oxford).
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Price increases of approximately 5% in Australia from 1 August 2026 and approximately 4% in New Zealand from 1 November 2026.
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Working capital expected lower as the stock pull-forward unwinds, with cash conversion anticipated above the target range.
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FX hedged 55% at US$0.69, delivering an estimated $3.0m positive full-year impact versus FY26.
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Ocean freight forecast to have an approximate $3.0m–$4.0m negative impact versus FY26.
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Significant items of $nil.
By region, Australia is expected to see improving residential completions with renovation activity remaining subdued, supported by a refreshed go-to-market strategy. New Zealand’s recovery is anticipated to be tempered by rising rates, with a focus on deeper merchant partnerships. In the United Kingdom, the Repair and Renovation segment is expected to contract through FY27, with continued focus on the social and affordable housing sector.
The combination of price rises and the working-capital unwind is positioned to support FY27 cash and margin, even against a softer construction backdrop.
Closing takeaway
GWA delivered revenue and earnings growth in a challenging cycle, lifted its fully franked dividend to 16.5c per share, and returned capital through its on-market buyback. Entering FY27 with pricing levers, an anticipated working-capital unwind and a clearer Three Horizons strategy, the company outlined a measured path forward despite the softer building activity forecast ahead.
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