Brickworks (BKW) H1 2025 earnings summary

Executive summary

• Diversified business model delivered robust results, with property and investments offsetting challenging building products markets, especially in North America.

• Statutory NPAT rose 141% to $21 million; underlying NPAT up 308% to $76 million for the half year ended 31 January 2025.

• Underlying EBITDA surged 472% to $148 million, mainly due to property revaluations in the prior period.

• Interim fully franked dividend increased by 4% to 25 cents per share, marking the 11th consecutive year of growth.

• Recognized as an ESG top-rated company in construction materials for the second consecutive year.

Financial highlights

• Underlying NPAT was $76 million, compared to a loss of $37 million in the prior period; statutory NPAT $21 million, up 141% year-over-year.

• Underlying EBITDA $148 million, up from a loss of $40 million in the prior period; operating cash flow up 11% to $59 million.

• Total revenue from continuing operations was $516.3 million, down 6% year-over-year.

• Net debt rose by $39 million to $721 million; gearing increased to 22%.

• Significant items of $55 million after tax, mainly from North America impairment.

Outlook and guidance

• Property rental income growth expected from new developments and lease renewals, though rental growth may slow in 2025 as occupier demand decreases.

• Building Products markets in Australia and North America to remain subdued in 2025, with recovery forecast from 2026 and further strengthening in 2027.

• Focus on maximising cash generation and operating efficiencies post-investment cycle.

• No specific EPS guidance provided, but positive projections for medium-term recovery.