Data#3 (DTL) H2 2025 earnings summary

Executive summary

• Achieved record gross sales of $3 billion for FY 2025, up 9% year-over-year, with growth across all business units, especially managed services, maintenance services, and software solutions.

• Gross profit rose to $289.7 million, up 7.3%, with an average gross margin of 9.6%, slightly down due to sales mix and strong software contribution.

• Profit before tax increased 11.4% to $69.1 million, and EBIT was up 12% to $59.9 million year-over-year.

• EPS grew 11.1% to 31.12c, and the total dividend per share increased by 10.2% to 28.10c, with a payout ratio of 90.3%.

• Recurring business rose to 69% of revenue, reflecting customer shift to multi-year subscription and as-a-service models, and customer satisfaction improved to 4.33/5.

Financial highlights

• Gross sales exceeded the Australian IT market growth rate of 8.7%.

• Net cash flows from operating activities were an inflow of $126.3 million, reversing an outflow of $86.2 million in FY 2024, and closing cash balance rose 29% to $356.7 million.

• Average daily cash balance increased to $267 million from $246 million in the prior year.

• Internal cost ratio improved to 79.7% from 80.6%, driven by restructuring, automation, and AI initiatives.

• Average day sales outstanding improved to 25 days from 27 days.

Segment performance

• Services: Gross sales nearly $400 million, up 6.7%; managed services grew 25%, maintenance services 8.6%. Gross profit up 7.4% with margin at 36.6%.

• Infrastructure: Gross sales increased 4.2% to $570.7 million, with gross margin up to 12.5% and management profit up 27.4%.

• Software: Gross sales reached $2 billion, up 10.9%; gross profit up 4.3% to $72.6 million, margin at 3.6%.

• Managed Services and Maintenance Services saw strong growth due to large contract wins and multi-year agreements.