8 January 2026

Dialight plc ("Dialight" or the "Group")

Third Quarter Trading Update

Further positive profit and cash generation momentum

Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy industrial applications publishes the following trading update following the end of the third quarter to 31 December 2025.

Demand trends and operating conditions in the Group's end markets have remained soft. The Group therefore remains cautious on the sales outlook.

The ongoing margin improvement, overhead cost reduction and higher cash generation announced in the Interim Results in September, have continued to improve with a strong third quarter profit delivery. The continued benefits of the delivery of the Transformation Plan means that the Group now expects to exceed market expectation* for Adjusted Operating Profit for the year ending 31 March 2026 and beyond.

On 16 December 2025, the Group paid Sanmina $5.65m in full and final settlement of all payments ahead of schedule, as previously disclosed.

The Group net debt closed at $10.3m on 31 December 2025 (30 September 2025: $10.2m) demonstrating positive profit and cash generation that supported the Sanmina advance payment being made.  The Group net debt is expected to further reduce by year-end and thereafter. A key contribution to the reduction in debt comes from the improved profit outlook disclosed above as well as good progress in reducing working capital, particularly inventory. Inventory at 31 December is $30.7m (31 March 2025 $46.6m), a reduction of $15.9m.

We expect Non-Underlying costs for the year to be approximately $4m (prior period: $21.6m) consisting almost entirely of transformation related activity, which will contribute to ongoing upgraded financial performance.

The Group continues to review further operational improvements; a further announcement will be made as and when appropriate.

The results for the year ending 31 March 2026 are expected to be released in June 2026.

Notes:

* Market expectation $8.6m EBITA (Earnings before Interest, tax and amortisation)

Contacts:

Dialight plc

Steve Blair, CEO Tel: +44 (0) 203 404 7757

Mark Fryer, CFO Tel: +44 (0) 203 058 3528

Investec Bank plc (Financial Adviser and Corporate Broker)

Christopher Baird / James Rudd Tel: +44 (0) 207 597 5970

LEI: 2138001AD31KKD29Z495

About Dialight: Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specifically designed to provide superior operational performance, reliability and durability, reducing energy consumption and ongoing maintenance and achieving a rapid return on investment. The company is headquartered in the UK with operations in Australia, Dubai, Germany, Malaysia, Mexico, Singapore, the UK and the USA. www.dialight.com.

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Dialight's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects. Dialight undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.