Australian slot machine manufacturer Ainsworth Game Technology has upgraded its earnings and cash flow guidance for the first half of 2026 after receiving an AU$3.8 million ($2.7 million) refund of tariffs previously paid in the United States. The company said the repayment has strengthened its financial position, allowing it to raise its profit expectations while maintaining its revenue forecast despite weaker sales in North America.
Tariff refund boosts first half profit forecast
Ainsworth said it now expects underlying profit before tax of about AU$5 million ($3.6 million) for the six months ended 30 June 2026. This is a significant increase from the AU$1 million ($710,000) forecast provided in its trading update released in May.
The gaming equipment supplier also lifted its earnings before interest, taxes, depreciation, and amortisation (EBITDA) guidance to around AU$17 million ($12.1 million), compared with the previous estimate of AU$13 million ($9.2 million). The updated figures exclude currency movements and one-off items.
The improved outlook follows an AU$3.8 million ($2.63 million) refund received by the company’s US subsidiary on 30 June. The repayment covers almost all tariffs that had been paid under the International Emergency Economic Powers Act (IEEPA).
Supreme Court decision led to refund
The tariff repayment follows a ruling by the US Supreme Court on 20 February, which determined that the IEEPA does not authorise the US administration to impose tariffs.
As a result of the decision, Ainsworth recovered substantially all of the duties previously paid under the legislation. The refund has provided an immediate benefit to the company’s earnings and cash position for the first half of the year.
The company said the repayment played a key role in improving its financial guidance for the reporting period.
Revenue outlook remains unchanged
Despite the stronger earnings forecast, Ainsworth left its revenue guidance unchanged at approximately AU$116 million ($82.4 million).
The projected revenue represents a 24 per cent decline compared with the same period last year. The company attributed the expected fall mainly to weaker sales across the North American market.
Although revenue is expected to be lower, the tariff refund and stronger cash collections have improved overall financial performance.
Cash flow and debt position improve
Ainsworth also upgraded its operating cash flow forecast for the first half of 2026.
The company now expects positive operating cash flows of around AU$8 million ($5.7 million), reflecting both the tariff repayment and better-than-expected cash collection from customers.
The stronger cash generation is also expected to reduce net debt to about AU$8 million ($5.7 million). In its previous guidance issued in May, Ainsworth had forecast net debt of around AU$14 million ($9.9 million).
The lower debt level provides a stronger balance sheet heading into the second half of the financial year.
Full results due in August
Ainsworth noted that the updated guidance remains subject to standard period-end closing procedures and financial review.
The company is scheduled to release its full financial results for the first half of 2026 on or around 25 August.
The upcoming results will provide further detail on the company’s financial performance following the tariff refund and the continued challenges facing its North American business.
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