Southern Cross Electrical Engineering (SXE) Investor Presentation summary

Business overview and strategy

• Leading national provider of specialised electrical, instrumentation, communications, security, fire, and maintenance services, diversified across infrastructure, commercial, and resources sectors.

• Over 75% of the order book is on the East Coast, with 80% of FY25 revenues from electrical and 20% from adjacent disciplines.

• Growth strategy focuses on deepening sector presence, expanding geographically, and increasing recurring revenues through organic growth and acquisitions.

• Recent acquisitions include Datatel, Heyday, Trivantage Group, MDE Group, and Force Fire, supporting diversification and scale.

• Emphasis on maximising synergies and cross-selling opportunities from a multidisciplinary group structure.

Financial performance

• Record FY25 revenue of $801.5m, up 45.2% from FY24; record EBITDA of $54.8m, up 36.6%; record EBIT of $45.9m, up 40.4%; and record NPAT of $31.7m, up 44.5%.

• Gross profit rose to $105.9m, with a gross margin of 13.2%; overheads as a percentage of revenue decreased to 6.6%.

• Year-end cash reached a record $88.6m, up 5.3%, with no debt and $115.2m in bank guarantees and surety bonds issued.

• Final fully franked dividend of 5.0 cps declared, to be paid 8 October 2025.

• Order book at $685m, down 4.9% from prior year, with infrastructure comprising 64% of revenue.

Operational highlights and sector diversification

• LTI-free for third consecutive year, with a workforce of around 1,900 employees.

• Major projects include Collie Battery Energy Storage System, Western Sydney International Airport, and Shellharbour Hospital.

• Data centre revenues circa $120m in FY25, with a strong pipeline and over $500m in tenders for future work.

• Exposure to electrification and renewables, including completion of the Collie BESS project and participation in wind and solar farm developments.

• Recurring revenues grew 15% in FY25, supported by long-term maintenance and service contracts.