Southern Cross Electrical Engineering (SXE) Investor presentation summary

Business overview and strategy

• National provider of electrical, instrumentation, communications, security, fire, and maintenance services, diversified across sectors and geographies, with 85% of order book on the East Coast and 60% of H1 FY26 revenues from electrical services.

• Growth driven by organic expansion and acquisitions, including Datatel, Heyday, Trivantage Group, MDE Group, and Force Fire.

• Strategy focuses on deepening sector presence, expanding geographically, increasing recurring revenues, and leveraging synergies from multi-disciplinary offerings.

• Exposure to electrification and decarbonisation trends, targeting opportunities in infrastructure, renewables, and data centres.

Financial performance

• Underlying EBITDA for H1 FY26 was $35.4m, up 30.8% on PCP; underlying EBIT was $29.1m, up 25.5%.

• NPAT loss of $12.8m due to $46.1m legal dispute costs from WestConnex arbitration; order book grew 6% to $710m.

• Revenue declined 12.2% to $349.1m as major projects wound down, but gross profit rose 30.3% to $65.9m, with gross margin improving to 18.9%.

• Cash balance at $58.8m after settlement payments; remains debt free with significant bonding headroom.

• Interim dividend of 2.5 cps declared, fully franked.

Operational highlights and outlook

• LTI-free for eighth consecutive half-year; workforce at 1,700 after project demobilisation.

• Major project completions and new awards in data centres, hospitals, battery storage, and metro rail.

• Trivantage Manufacturing doubling floor space; multi-disciplinary offerings gaining traction.

• Unprecedented pipeline of data centre projects being tendered; FY26 underlying EBITDA guidance raised to at least $72m.