Speedy Hire (SDY) H2 2025 earnings summary

Executive summary

• Continued execution of the Velocity Strategy, focusing on the enable phase, with completion targeted for FY2026.

• Ongoing investment in hire fleet, digital transformation, and new specialist businesses, including Temporary Site Solutions.

• Maintained industry leadership in ESG, with recognition for sustainability and workplace excellence.

• Navigated challenging but manageable market conditions, securing significant contract wins and extensions.

• Board confident in achieving FY2026 expectations, supported by new financing and revised capital allocation.

Financial highlights

• Revenue (excluding fuel) increased by 1.3% year-over-year to £386.4m; total revenue £416.6m, down 1.2%.

• Gross profit margin improved to 56.7% from 54.6%; EBITDA margin stable at 23.3%.

• Operating profit (EBITA) £26.8m, down 2.5%; adjusted PBT £8.7m, down 40.8%.

• 95% of EBITDA converted to underlying operating cash, supporting increased hire fleet investment to nearly £58 million.

• Net debt increased to £113.1m (FY2024: £101.3m); leverage at 1.9x.

Outlook and guidance

• Board remains confident in achieving full-year expectations for FY2026.

• FY2026 is the final year of the 'Enable' phase, with continued investment in growth and digital transformation.

• Capex for hire fleet expected to remain at FY2025 levels; continued investment in strategic projects and potential acquisitions.

• Well positioned to benefit from government infrastructure commitments and gradual market recovery.