SGH (SGH) Company Presentation summary

Financial performance and growth

• Achieved 10-year revenue CAGR of 16%, EBIT CAGR of 19%, and NPAT CAGR of 18%, with EBIT margin up 271bps over the decade.

• FY25 EBIT composition: WesTrac $352m (+5%), Boral $259m (+29%), Coates $156m (-2%), Energy $70m (+39%), Other Media $23m (-18%), Corporate & Other -$18m (-50%).

• 10-year total shareholder return (TSR) outperformed index: 835% vs 133% (XNJ), with disciplined capital allocation and stable, growing dividends.

• FY25 guidance targets high single-digit EBIT growth and deleveraging balance sheet to 2.0x adjusted ND/EBITDA.

Business segments and operational highlights

• WesTrac maintains a large active machine population (~9,000 in resources, ~41,000 in construction) and stable EBIT margins, focusing on capital sales and rebuilds.

• Boral operates 360 sites, serves 14,000 customers, and has shown strong pricing traction in quarries and cement, with a focus on asset reliability and compliance.

• Coates holds a leading market share in equipment rental, with 61-62% time utilisation and a strategy to expand into renewables, defence, and specialist offerings.

• Energy segment benefits from strong domestic gas demand and global LNG growth, with exposure to key bulk commodities and anticipated supply gaps.

Strategic objectives and market outlook

• Strategic focus on mining, infrastructure, and transitional energy, supported by a $1.8 trillion 7-year infrastructure outlook and robust mining investment pipeline.

• Capital allocation prioritises growth, operational leverage, and return hurdles, with 100% EBITDA cash conversion and strong operating cash flow.

• Domestic market focus has driven outperformance, with reduced international exposure and major acquisitions in Boral and Coates.

• FY25 operational priorities include margin improvement at Boral, fleet optimisation at Coates, and execution of WesTrac sales and rebuilds.