Scott Technology (SCT) H1 2025 earnings summary

Executive summary

• Strategy refresh underway, focusing on customer needs and collaborative culture for sustainable growth.

• Revenue for HY25 was $121.7m, down 13.6% year-over-year, with net profit after tax at $4.3m.

• Cash flow turned positive, with operating cash inflow of $14.5m and improved working capital.

• Interim dividend of 3.0 cents per share declared, reduced from 5 cents in the prior year, with a reinvestment plan.

• Restructuring in appliance and industrial automation markets completed in 2024, with all related costs recognized previously.

Financial highlights

• HY25 revenue was $122m, down 14% compared to HY24, primarily due to soft order intake in FY24.

• Reported EBITDA for HY25 was $12m, down from $14m in HY24; underlying EBITDA was $12.2m, down from $16.6m.

• Net profit after tax (NPAT) was $4.3m, slightly down from $4.5m in the prior year.

• Operating cash flow improved significantly to $14.5m in HY25, up from a $7.7m outflow in the prior year.

• Net debt reduced to $13m, with term loans at $13.4m and cash of $12.3m at period end.

Outlook and guidance

• Solid momentum expected into 2H25, supported by large project wins and increasing standard product sales.

• Tariff changes expected to have limited direct impact in FY25, but global economic uncertainty may affect capital investment decisions.

• Nearshoring and regionalized supply chain trends align with automation strengths.

• No significant subsequent events affecting future operations were reported.

• Sector-specific outlooks: strong pipeline in materials handling, minerals projects progressing, positive protein market in ANZ, and continued execution of the $20m Midea appliance project.