Tamawood (TWD) investor relations material

Financial performance and position

• FY25 profit before tax reached $8.299 million, up from $8.027 million in FY24, with revenue rising 18.3% to $100.99 million and gross margin stable at $21.84 million.

• Cash on hand at year end was $3.44 million, down from $6.11 million in FY24, while the company remains debt-free.

• Final dividend of $0.105 (unfranked) declared, totaling $0.215 for FY25 (53% franked), yielding over 8.55% on a $2.90 share price.

• Employee Benefits Expense increased by 8.2% in FY25, with only a 1.5% increase in the first four months of FY26 despite a 39% sales revenue jump.

Market conditions and challenges

• Labour and skills shortages, declining productivity, and regulatory delays are key challenges in the Australian residential construction market.

• Queensland greenfield land prices rose 27% to $483k, with supply at decade lows and only three years of development-ready land available.

• Housing supply has outpaced population growth, but much of the new stock is misaligned with demand, leading to empty homes.

Strategic priorities and operational initiatives

• Focus on enhanced customer engagement, AI-guided marketing, and quality management to reduce defects and boost referrals.

• Targeting new secondary land markets and leveraging diversified product designs and AI tools to expand market footprint.

• Developing custom tools to automate drafting and refining AI scheduling for better resource allocation and project delivery.