Redox (ASX:RDX) Margin Compression Resurfaces Bearish Narratives Despite Revenue Growth Forecasts

Simply Wall St.02-20

Redox (ASX:RDX) has put fresh numbers on the board for H1 2026, with trailing 12 month revenue of A$1.29b and net income of A$81.0 million framing the latest set of results. Prior half year snapshots ...

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Prior half year snapshots ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-rdx/redox-shares/news/redox-asxrdx-margin-compression-resurfaces-bearish-narrative\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Redox (ASX:RDX) Margin Compression Resurfaces Bearish Narratives Despite Revenue Growth Forecasts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRedox (ASX:RDX) Margin Compression Resurfaces Bearish Narratives Despite Revenue Growth Forecasts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-20 03:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/capital-goods/asx-rdx/redox-shares/news/redox-asxrdx-margin-compression-resurfaces-bearish-narrative><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Redox (ASX:RDX) has put fresh numbers on the board for H1 2026, with trailing 12 month revenue of A$1.29b and net income of A$81.0 million framing the latest set of results. Prior half year snapshots ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-rdx/redox-shares/news/redox-asxrdx-margin-compression-resurfaces-bearish-narrative\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ANY","symbol_name":"Sphere 3D Corp","start_time":0,"source_url":"https://simplywall.st/stocks/au/capital-goods/asx-rdx/redox-shares/news/redox-asxrdx-margin-compression-resurfaces-bearish-narrative","article_id":"2612749231","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3081000-choice1-main-header/1585186648416"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/capital-goods/asx-rdx/redox-shares/news/redox-asxrdx-margin-compression-resurfaces-bearish-narrative","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612749231","pubTimestamp":1771529651,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Redox (ASX:RDX) has put fresh numbers on the board for H1 2026, with trailing 12 month revenue of A$1.29b and net income of A$81.0 million framing the latest set of results. Prior half year snapshots show revenue at A$631.8 million with EPS of A$0.076 in H1 2025, A$611.9 million with EPS of A$0.070 in H2 2025, and A$555.4 million with EPS of A$0.097 in H2 2024. Over those periods, the data tracks a revenue step up from A$555.4 million in H2 2024 to A$631.8 million in H1 2025, alongside shifts...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ANY":"Sphere 3D Corp","RDX.AU":"Redox Ltd/Australia"},"translate_title":"尽管预测收入增长，Redox(ASX：RDX)利润率压缩重新浮现看跌言论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANY":1.5,"RDX.AU":1.5},"content_text":"Redox (ASX:RDX) has put fresh numbers on the board for H1 2026, with trailing 12 month revenue of A$1.29b and net income of A$81.0 million framing the latest set of results. Prior half year snapshots show revenue at A$631.8 million with EPS of A$0.076 in H1 2025, A$611.9 million with EPS of A$0.070 in H2 2025, and A$555.4 million with EPS of A$0.097 in H2 2024. Over those periods, the data tracks a revenue step up from A$555.4 million in H2 2024 to A$631.8 million in H1 2025, alongside shifts in EPS across the range. This sets the scene for investors to focus on how margins and growth expectations balance out in the latest release. See our full analysis for Redox. With the headline figures on the table, the next step is to set these results against the prevailing market narratives to see which stories around Redox’s growth, margins and earnings power hold up. See what the community is saying about Redox ASX:RDX Earnings & Revenue History as at Feb 2026 AdvertisementMargins Softer Even As Revenue Builds  On a trailing 12 month view, Redox earned A$81.0 million of net income on A$1.29b of revenue, which works out to a 6.3% net margin compared with 7.7% a year earlier. What worries the bearish narrative is that this lower 6.3% margin sits alongside comments about pressure from lower margin acquisitions and higher operating costs, yet:\n     Recent half year data shows net income of A$40.2 million in H1 2025 and A$36.9 million in H2 2025 on A$631.8 million and A$612.0 million of revenue, so profitability has been solid in dollars even as the margin percentage eased. Bears focus on risks like wage inflation and regulatory costs, and the current margin compression gives those concerns some backing rather than clearly contradicting them.    On these numbers, skeptics see current profitability as vulnerable if costs keep climbing faster than sales. 🐻 Redox Bear Case Valuation Sits Between DCF And Price Target  At a share price of A$2.90, Redox trades on a trailing P/E of 18.8x, above the Global Trade Distributors average of 15.8x and peer average of 17.1x, and also above the DCF fair value of about A$2.08, but below the A$3.57 analyst consensus price target. Supporters of the bullish narrative point to expected earnings growth of about 12.5% per year and revenue growth of roughly 9.3% per year, and this sits in tension with:\n     The share price already being higher than the A$2.08 DCF fair value, which suggests the market is willing to pay up for that growth profile. Analysts’ consensus implying around 23% upside from A$2.90 to A$3.57, which lines up with the idea that stronger revenue and earnings can justify a P/E above sector averages.    If you want to see how optimistic investors connect these growth forecasts and valuation, check out the full bullish case in 🐂 Redox Bull Case Dividend Appeal Versus Cash Flow Strain  Redox currently offers a dividend yield of 4.31%, but that payout was not well covered by free cash flow over the trailing 12 months. Critics highlight this cash flow mismatch as a key risk, and the rest of the dataset underlines why it matters:\n     With net profit margin at 6.3% and the company already trading on an 18.8x P/E, there is less room for error if working capital needs or capex absorb more cash than expected. The combination of a relatively full valuation compared with industry averages and a dividend not comfortably backed by free cash flow is exactly the kind of setup bearish voices point to when they talk about pressure on future flexibility.    Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Redox on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. These results spark mixed reactions, so it makes sense to understand the details yourself and decide whether the risk reward trade off suits you. To help with that, take a look at the 3 key rewards and 1 important warning sign that we have pulled together from the latest data. Explore Alternatives Redox pairs a 6.3% net margin and an 18.8x P/E with a dividend that was not well covered by free cash flow, which tightens its room for error. If that mix of cash flow strain and dividend pressure feels uncomfortable, check out our 9 dividend fortresses to find payouts backed more firmly by underlying cash generation today.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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