SGH (SGH) H2 2025 earnings summary

Executive summary

• Achieved record FY 2025 results with revenue of A$10.7 billion, up 1% year-over-year, EBIT of A$1.54 billion, up 8%, and NPAT of A$924 million, up 9%, driven by strong industrial services and disciplined execution.

• Operating cash flow increased 49% to A$1.95 billion, with EBITDA cash conversion at 95% across Industrial Services.

• TSR performance reached 46% for FY 2025, supported by margin expansion and strong segment contributions.

• Final dividend of $0.32 per share, total FY 2025 dividend $0.62, up 17% year-over-year.

• Completed full acquisition of Boral, reinforcing position as a leading diversified operating company.

Financial highlights

• Revenue up 1% to A$10.7 billion; EBIT up 8% to A$1.54 billion; EBITDA up 6% to A$2.1 billion.

• NPAT up 9% to A$924 million; statutory NPAT up 5% due to impairments.

• EBIT margin expanded to 14.3%; EBITDA margin at 19.1%.

• Return on Equity at 19.3%, down from 20.8% year-over-year.

• Deleveraged to below 2x net debt/EBITDA; closing net debt at A$4.2 billion.

Outlook and guidance

• FY 2026 EBIT growth expected in the low to mid-single digits, supported by margin expansion and sector exposure.

• WesTrac to see continued services growth, with capital sales normalizing; Boral to benefit from operational momentum and efficiency.

• Coates faces mixed near-term conditions but positive medium-term outlook with Growth30 strategy.

• Focus areas: cadence, sales effectiveness, operating leverage, and innovation.