SKS Technologies Group (SKS) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 reached AUD 132 million, up 13.6% year-over-year, with strong growth across all profit metrics and significant expansion in both traditional and data centre segments.

• EBITDA increased 42.9% to AUD 14 million, and profit before tax rose 52.8% to a 9.7% margin, with NPAT at AUD 8.8 million.

• Interim dividend declared at AUD 0.035 per share, up from AUD 0.01 in H1 FY25.

• Strong operational cash flow and a robust cash position support ongoing growth, despite labour recruitment challenges.

• Acquisition and integration of Delta Elcom completed, expanding presence in NSW and the data centre market.

Financial highlights

• Sales revenue rose 13.6% to AUD 131.8 million in H1 FY26; EBITDA up 42.9% to AUD 14 million; NPAT up 52% to AUD 8.8 million.

• Operating cash flow increased 46.6% year-over-year to AUD 27.8 million; cash on hand at AUD 51.8 million.

• Working capital improved from AUD 18.3 million to AUD 9.85 million.

• Total expenses rose 11.1%, less than the 13.6% sales increase, supporting margin expansion.

• Basic and diluted EPS were 7.72 cents, up from 5.16 cents year-over-year.

Outlook and guidance

• Full-year FY26 revenue guidance set at AUD 340 million with a 10% profit before tax margin.

• Significant uplift expected in H2 FY26, supported by a strong work in hand position and robust demand in the data centre sector.

• FY27 work in hand already at AUD 177 million, with expectations for further contract wins.

• Organic growth prioritized, with opportunistic acquisitions considered.

• Enhanced operating platform and increased bank facilities support growth.