GALE PACIFIC LTD (ASX:GAP) - GALE Pacific’s Turnaround Playbook

Send us Fan Mail ASX Investment Opportunity - GALE Pacific Ltd (ASX:GAP) Revenue drops, yet EBITDA rises and the balance sheet flips to net cash. That’s the tension at the heart of our chat with Troy Mortleman, CEO of GALE Pacific Limited, the ASX-listed manufacturer behind innovative shade fabrics and technical textile solutions sold across Australia, New Zealand, the United States, Dubai and more than 40 countries. We walk through how GALE Pacific lifts earnings quality on a smaller revenue base by tightening cost control, simplifying operations, and improving product and customer mix. Troy explains the $7m+ operating expense reduction, including the Americas operating model reset, and why protecting customer-facing capability matters when you’re cutting costs. We also unpack the FY26 “mixed result” scorecard: a net loss alongside meaningful progress in cash flow, inventory and financial resilience. The cash flow story is the standout. Operating cash flow swings to $21.4m and the company moves from net debt to net cash, powered by disciplined working capital management and an $8.6m inventory reduction without lowering service levels. From there we go region by region: soft US consumer demand and deliberate retailer inventory realignment, new retail agreements that expand reach to 12,000+ outlets, and a sharp ANZ margin lift driven by mix and cost discipline. Troy also discusses grain storage demand cycles, Middle East disruption risk and the advantage of holding inventory in Dubai, plus momentum in Europe, Asia and India. We finish with the strategic moves investors care about: manufacturing diversification with a trusted partner in Thailand, warehouse consolidation in China, and the key milestones to watch over the next 12 to 18 months. Subscribe, share this with a fellow ASX follower, and leave us a review with the one metric you think best signals a real turnaround.