Schaffer Corporation (SFC) H2 2025 earnings summary

Executive summary

• Revenue increased 2% year-over-year to $229.7m for FY25, with strong performance in manufacturing divisions.

• Statutory NPAT decreased 10% to $24.3m, mainly due to lower unrealised revaluation gains at South Connect Jandakot.

• Manufacturing NPAT rose 7% to $21.2m, driven by Automotive Leather and Delta.

• Group investments and property portfolio value grew, with pre-tax net equity value up 7.8% to $227.3m.

Financial highlights

• Automotive Leather NPAT up 7% to $16.3m; Delta NPAT up 9% to $4.9m.

• Group Investments NPAT increased 75% to $3.3m; South Connect Jandakot NPAT fell 66% to $3.0m.

• EPS declined to $1.78 from $1.99 year-over-year.

• Fully franked dividends maintained at $0.90 per share.

• Solid cash generation of $28.3m, though down from $48.7m in FY24.

Outlook and guidance

• Automotive Leather expects 1H26 profitability similar to 1H25, with new program launches supporting volumes.

• Delta anticipates near break-even performance due to a weaker industry environment.

• Group Investments may see profit volatility due to regular revaluations.