Ainsworth expects stronger H1 performance following US tariff refund

Ainsworth Game Technology has upgraded its outlook for the first half of 2026 after receiving a refund of tariffs previously paid under the United States' International Emergency Economic Powers Act (IEEPA), improving both profitability and cash flow expectations.

The Australian gaming equipment manufacturer announced that its US subsidiary, Ainsworth Game Technology Inc., received refunds totaling US$2.7m on 30 June. The payment represents substantially all of the import duties previously paid under the IEEPA tariff regime.

The refund follows a US Supreme Court ruling on 20 February 2026 that found IEEPA did not authorise the US Administration to impose the tariffs, paving the way for affected businesses to seek reimbursement.

As a result of the repayment, Ainsworth now expects to report total revenue of approximately AU$116m for the six months ended 30 June 2026. The company also forecasts underlying profit before tax of around AU$5m and underlying EBITDA of approximately AU$17m, excluding currency movements and one-off items.

The stronger-than-expected cash position has also improved the company's balance sheet. Positive operating cash flow is expected to reach about AU$8m during the period, helping reduce net debt to approximately AU$8m, down from AU$11.8m at 31 December 2025. 

Ainsworth said the decline in net debt reflected not only the tariff refund but also stronger cash collections than previously anticipated.

The tariff reimbursement had not been included in the company's trading update issued in May because of uncertainty surrounding both the timing of the recovery and the final amount that would be refunded.

The company noted that the figures remain subject to normal period-end closing and review procedures. A further update is expected when Ainsworth releases its full financial results for the first half of 2026, currently scheduled for on or around 25 August, or earlier if required under its continuous disclosure obligations.