Southern Cross Electrical Engineering (SXE) investor relations material

Business overview and strategy

• Leading national provider of electrical, instrumentation, communications, security, fire, and maintenance services, diversified across infrastructure, commercial, and resources sectors.

• Over 75% of the order book is on the East Coast, with 80% of FY25 revenues from electrical and 20% from adjacent disciplines.

• Growth strategy focuses on deepening sector presence, expanding geographically, and adding complementary capabilities through organic growth and acquisitions.

• Increasing exposure to recurring revenues and actively exploring further acquisitions for diversification.

• Emphasis on synergies and cross-selling opportunities from a multidisciplinary group structure.

Financial performance

• Record FY25 revenue of $801.5m, up 45.2% from FY24, with record EBITDA of $54.8m and NPAT of $31.7m, both significantly higher than prior year.

• Gross profit rose to $105.9m, though gross margin declined to 13.2% due to legal costs and less profitable project mix.

• Year-end cash reached a record $88.6m, with no debt and strong financial headroom.

• Order book at $685m, slightly down from prior year, with infrastructure making up nearly two-thirds.

• Final fully franked dividend of 5.0 cps paid.

Operational highlights and sector diversification

• LTI-free for third consecutive year, with a workforce of about 1,900 employees.

• Major projects included Collie BESS, Western Sydney Airport, and multiple data centres.

• Infrastructure now the largest sector, accounting for 64% of revenue, with commercial and resources sectors stable.

• Data centre and renewables sectors are key growth areas, with significant ongoing and future project pipelines.

• Force Fire acquisition completed, enhancing fire safety capabilities and recurring revenue base.