SGH (SGH) H1 2026 earnings summary

Executive summary

• Revenue was flat to slightly down at AUD 5.4 billion, with EBIT of AUD 844 million and underlying NPAT up 2% to AUD 518 million, despite normalization of WesTrac capital sales and variable market conditions.

• EBIT margin improved 30 bps to 15.6% due to profitability improvements at Boral and WesTrac.

• Operating cash flow increased 32% to AUD 1.1 billion, with EBITDA cash conversion at 98%.

• Interim fully franked dividend increased 7% to AUD 0.32 per share, reflecting a commitment to stable and growing dividends.

• Safety performance improved, with LTIFR down 36% and TRIFR down 31%.

Financial highlights

• Revenue of AUD 5.4 billion, down 2% year-over-year, with 7% revenue growth at Boral offsetting WesTrac normalization.

• EBITDA up 1% to AUD 1.1 billion; EBIT up to AUD 844 million; underlying NPAT up 2% to AUD 518 million.

• Statutory NPAT up 1% to AUD 473 million, after AUD 46 million in pre-tax significant items.

• Operating cash flow increased 32% to AUD 1.1 billion; net debt reduced 4% to AUD 4 billion; available liquidity at AUD 2.1 billion.

• Net tangible asset backing per share increased to AUD 7.14 from AUD 6.29.

Outlook and guidance

• FY26 guidance for low to mid-single digit EBIT growth reiterated, supported by operational momentum and balanced sector outlook.

• Second half skew expected to be consistent with prior years (approx. 56/44 split).

• Focus remains on disciplined execution, sales capture, operational leverage, and innovation, including AI adoption.

• Remaining performance obligations of AUD 379.9 million, with 17% expected within 12 months.