Lycopodium (LYL) H1 2025 earnings summary

Executive summary

• Achieved half-year revenue of $167.4 million and net profit of $25.2 million, with a net profit margin of 15.1% and return on equity at 19.3%, supported by strong operational performance and over 1,400 staff globally.

• Completed acquisition of 60% of SAXUM, expanding presence in the Americas and cement sector, funded entirely from cash reserves and with no new debt.

• Maintained a robust order book of $456 million and an opportunity pipeline of $4.1 billion, with addressable market up 40% year-over-year due to geographic expansion.

• Record staff levels above 1,400, high project utilization, and zero LTIFR for the period.

• Balanced, diversified project portfolio across commodities, geographies, and clients, with over two-thirds of revenue from repeat clients.

Financial highlights

• Revenue of $167.4 million, EBITDA of $39.5 million, profit before tax of $35.8 million, and net profit of $25.2 million for 1H FY2025.

• Half-year dividend declared at 10.0 cents per share, with normalized allocation including SAXUM at 38 cents per share.

• Cash at bank of $77.1 million after funding SAXUM acquisition; no new debt or equity raised.

• Net profit margin at 15.1% for the half-year, with a target of 10% for sustainable returns.

• Basic and diluted EPS were 63.5 cents; interim dividend payout ratio was 15.7% of half-year net profit.

Outlook and guidance

• FY2025 full-year guidance: revenue of $320–340 million and NPAT of $37–43 million, reflecting project phasing and expected warranty provisions.

• SAXUM acquisition expected to contribute immediately to revenue and profitability, supporting geographic and sector diversification.

• Margin in H2 expected to be below 10% due to project mix and timing, with a softer second half anticipated.

• Strong long-term demand and opportunity pipeline across all sectors, with no shortage of work anticipated.

• Expansion into the Americas expected to increase total addressable market by over 40%.