Final results highlight an adj. EBITDA outturn which is 7% ahead of our forecast at £2.9m post-SBP (SCMe: £2.7m, 2024: £1.6m). The £1.6m contribution from 24hr Aquaflow (acquired Oct. ‘24) offset an organic decline. Whilst we nudge down our headline EBITDA forecasts (see p.2) it is encouraging that, after a challenging H1, headwinds eased during H2. Contract win momentum has also improved, the operational management team has been upgraded, and the new business pipeline remains strong. Given the success of 24hr Aquaflow, it is not surprising that M&A remains part of the strategy. Any further deals could enhance React’s growth profile. There continues to be substantial upside to our 69p target price (11x FY26 PER) and we stay at Buy against a backdrop of easing headwinds.
