Southern Cross Electrical Engineering (SXE) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of AUD 397.4 million, up 55.5% year-over-year, with infrastructure as the largest sector at 63.3% of revenue and strong growth in data centres and electrification.

• EBITDA reached a record AUD 27.1 million, up 58.5%, and NPAT was AUD 16.2 million, up 67.8% year-over-year.

• Maintained a debt-free balance sheet with record cash of AUD 114.8 million, up 36.5% year-over-year, and declared a fully franked interim dividend of AUD 0.025 per share, up 150%.

• Order book increased to AUD 670 million, up 21.8% year-over-year, with infrastructure comprising up to 70%.

• Recent MDE acquisition integrated successfully and performing to expectations.

Financial highlights

• Gross profit rose 34.2% to AUD 50.6 million, though gross margin declined by 2 percentage points to 12.7% due to legal costs and project mix.

• Overheads as a percentage of revenue fell to 6% from 8.2% year-over-year, despite a 14.8% increase in absolute terms.

• Record dividend payout of up to AUD 13.2 million and a large tax payment of AUD 16 million were made in the period.

• Included AUD 1.1 million of acquisition amortization in EBIT and NPAT.

• Basic EPS was 6.13 cents, up from 3.67 cents year-over-year.

Outlook and guidance

• Reiterated FY2025 EBITDA guidance of at least AUD 53 million, with expectations for further growth in FY26 and beyond.

• Strong pipeline in data centres, infrastructure, and electrification, with over AUD 500 million in data centre tenders over the next two years.

• Actively exploring further acquisitions to drive geographic and capability diversification, supported by a strong balance sheet.