Willdale Limited recorded a 36 percent decline in revenue for the quarter ended December 31, 2025, as limited working capital curtailed production and sales volumes despite strong demand in the construction sector.

In a trading update, the company said the operating environment remained relatively stable, with inflation and exchange rates showing minimal volatility. However, liquidity constraints continued to weigh heavily on operations. 

“Liquidity constraints continued to limit access to working capital and funding for capital expenditure,” the company said, adding that production remained below capacity even as competition intensified from a growing number of brick manufacturers.

The constrained funding environment significantly affected output. Willdale reported that extrusion volumes fell by 28 percent, while fired production dropped sharply by 52 percent compared to the prior year. As a result, sales volumes declined by 49 percent due to low stock availability.

“Limited working capital negatively affected production,” the company said, noting that reduced inventory levels were the primary driver of weaker sales performance during the quarter.

Despite lower volumes, average selling prices increased by 28 percent, reflecting what the company described as a targeted sales mix. Even so, the price gains were insufficient to offset the volume decline, leading to a sharp contraction in revenue.

Signs of relief are beginning to emerge, with Willdale pointing to land sales at its Haydon Industrial Park as a key intervention to stabilise cash flows. “The sale of stands in the Haydon Industrial Park has begun to ease working capital pressures, and stock levels are expected to improve significantly in Q2,” the company said.

Proceeds from the land sales have already been channelled toward sustaining operations. Willdale said servicing of Phase 1 of Haydon Industrial Park is progressing well, with strong market interest, while stand sales initiated in December have supported “critical plant maintenance and working capital needs.”

Willdale expects the land disposals to fund a major upgrade to its production capacity. “The company expects to raise sufficient funds through these sales to acquire a modern all-weather brick making plant before year end, in line with the growth strategy,” the update said.

Beyond Haydon, Willdale said development permits for Phase 2 of the industrial park and for its Tenerife project are still pending approval. The company is also invested in the Smartsuburb project, which it expects to commence before March 2026. 

These developments, Willdale said, are expected to “deliver strong returns and provide resources to stabilise and grow the business in the short to medium term.”

On outlook, management remained cautiously optimistic, citing sustained momentum in the construction sector.

 “The construction sector outlook remains positive,” the company said, adding that successful capital-raising efforts would restore production capacity and support the acquisition of a modern brick plant, enhancing competitiveness.

Willdale also reiterated its alignment with national industrial policy, saying it “commends government initiatives aimed at promoting local manufacturers” and remains committed to expanding capacity to sustainably support infrastructure development.