CleanSpace Holdings Ltd (ASX:CSX) is a designer and manufacturer of respiratory protection equipment and consumables for powered air purifying respirators (PAPRs). CSX has provided a trading update at their AGM which guides to lower H1 FY26 revenue growth relative to previous halves and RaaS estimates (+27%), impacted by trade and tariff tensions not dis-similar to trends seen for several advanced Australian manufacturers including Veem (ASX:VEE) and Austin Engineering (ASX:ANG), and the dismantling of key US safety regulator NIOSH. Gross margins remain in-line with estimates around the ‘mid-70s’ and costs are well controlled. H2 FY26 revenue growth is expected to be stronger (RaaS now +23%), aided by the first price increase since 2023 and a likely new model launch, and as a result positive operating EBITDA and cash flow is still expected. Off a low base we cut FY26-FY28 EBITDA estimates by 17%-32% and our DCF moves from $1.15/share to $1.05/share. CSX has a small (~1%) market share in the global industrial PAPR market with a compelling product offering and remains in the early days of expansion into the US, parts of Asia and parts of Europe (outside established markets in France and the UK).
