Ainsworth Raises 1H26 Outlook After United States Tariff Refund

Ainsworth Game Technology has upgraded its financial expectations for the first half of 2026 after recovering nearly all tariffs previously paid in the United States under the International Emergency Economic Powers Act (IEEPA).

The Australia-listed gaming supplier disclosed that its U.S. subsidiary received a refund totaling US$2.7 million on June 30. The reimbursement followed a ruling by the U.S. Supreme Court on February 20, 2026, which determined that IEEPA did not provide authority for the U.S. administration to impose the tariffs in question.

Following the repayment, the company revised several key financial forecasts for the six months ending June 30, 2026, including profit, cash flow and debt projections.

Updated Financial Expectations for First Half

In a filing released Friday, Ainsworth said it now expects total revenue for the first half of the year to reach approximately AU$116 million. The latest estimate remains unchanged from guidance provided earlier in the year.

While revenue projections were maintained, the tariff recovery significantly improved earnings expectations. The company now forecasts underlying profit before tax of around AU$5 million and earnings before interest, taxation, depreciation and amortization (EBITDA) of approximately AU$17 million. These figures exclude currency effects and one-off items.

The revised outlook marks a notable increase from the guidance issued in May, when Ainsworth anticipated underlying profit before tax of about AU$1 million and EBITDA of AU$13 million.

Despite the improved earnings forecast, revenue remains lower than the comparable period a year earlier. Previous guidance indicated a year-on-year decline of 24%, largely due to softer sales performance in North America.

Supreme Court Decision Led to Refund

According to the company, the refund process began after the U.S. Supreme Court ruled that IEEPA could not be used as the legal basis for the tariffs. “As a result, the IEEPA tariffs were declared unlawful and the company applied for refunds of previously paid IEEPA tariffs,” Ainsworth stated, according to GGRAsia.

The company confirmed that the reimbursement represented substantially all of the tariff payments previously made under the legislation. Ainsworth did not specify the remaining balance that was not included in the refund.

Management also explained that the repayment had not been incorporated into the trading update issued on May 22 because uncertainty remained over both the timing and the final amount recoverable through the refund process.

Cash Flow and Debt Position Improve

The tariff reimbursement also strengthened Ainsworth’s expectations for operating cash generation and balance sheet performance.

The company now projects positive operating cash flow of approximately AU$8 million for the first half of 2026. Earlier guidance had pointed to positive cash flow of around AU$2 million.

Ainsworth expects net debt to decline to approximately AU$8 million by the end of the reporting period. This compares with net debt of AU$11.8 million recorded on December 31, 2025. Earlier projections had indicated debt could remain closer to AU$14 million.

Management attributed the stronger debt position to both the tariff repayment and better-than-expected cash collections during the period. Ainsworth plans to publish its complete first-half 2026 financial results on or around August 25.

The updated guidance comes after comments made in May by chief executive Ryan Comstock, who had indicated that organizational changes introduced during the latter part of 2025 were expected to influence performance during the first six months of 2026. With the tariff reimbursement now reflected in forecasts, the company expects a stronger earnings and cash flow outcome than previously anticipated.