SGH (SGH) H2 2024 earnings summary

Executive summary

• Revenue grew 10% year-over-year to AUD 10.6 billion, with underlying EBIT up 20% to AUD 1.42 billion and NPAT up 30% to AUD 850 million, driven by strong performance in industrial services, mining, infrastructure, and transitional energy sectors.

• Industrial Services, led by WesTrac, Boral, and Coates, delivered strong earnings growth and margin expansion.

• Completed compulsory acquisition of Boral, now fully integrated, providing access to strong cash flows, strategic alignment, and simplifying capital structure.

• FY24 total shareholder return reached 56%, with a 10-year EBIT CAGR of 18%.

• Significant progress in safety and sustainability, with improved LTIFR and TRIFR by 26%.

Financial highlights

• Revenue up 10% year-over-year to AUD 10.6 billion; EBITDA up 14% to AUD 1.93 billion; EBIT up 20% to AUD 1.42 billion.

• Group NPAT of AUD 850 million, up 30%; statutory NPAT of AUD 464 million, down 23% due to impairments.

• Operating cash flow of AUD 808 million, down 32% due to over AUD 500 million working capital investment at WesTrac.

• Return on Equity at 20.8%, up 406 bps; fully franked dividend of AUD 0.30 per share, up 30%.

• Statutory NPAT impacted by significant items, mainly Boral-related.

Outlook and guidance

• FY 2025 guidance for high single-digit EBIT growth, supported by strong demand, robust project pipelines, and productivity gains.

• WesTrac expected to benefit from strong capital sales pipeline and service demand; Boral and Coates to leverage productivity and infrastructure pipeline.

• Beach Energy targets 17.5–21.5mmboe production, with strategic refresh underway.

• Leverage expected to reduce from 2.26x to around 2.1x by end of FY 2025, assuming no major transactions.