Wagners Holding Company (WGN) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached AUD 481.4 million, up 1% year-over-year, with operating EBIT of AUD 39.7 million, an 81% increase over FY 2023, exceeding guidance.

• Net profit after tax rose 229% to AUD 10.3 million, with gross profit up 17% to AUD 140.5 million.

• Net debt was reduced by 49% to AUD 47.6 million as of June 2024, reflecting strong cash flow and working capital improvements.

• A fully franked final dividend of AUD 0.025 per share was declared, the first since 2018.

• Improved market conditions and strong demand for construction materials and services, especially in Southeast Queensland.

Financial highlights

• Operating EBIT margin improved to 8.2% from 4.6% in FY23; gross margin increased to 29.2% from 25.2%.

• Operating EBITDA was AUD 66.8 million, up from AUD 50.0 million in FY23.

• Cash flow from operations increased by AUD 55.8 million to AUD 72.6 million, driven by stronger earnings and working capital release.

• Capital expenditure rose to AUD 23.9 million, focused on plant upgrades, expansion, and efficiency improvements.

• Total impairments of AUD 8.8 million recognized, including AUD 5.6 million for Earth Friendly Concrete and AUD 3.2 million for Wacol facility.

Outlook and guidance

• Medium-term outlook expects continued strong demand for core products, supported by a robust order book and long-term contracts.

• FY 2025 is expected to see increased concrete volumes and growth in the steel business, with new plant investments driving capacity and efficiency.

• No major precast project will replace the Sydney Metro project in FY 2025, impacting earnings, but new long-term contracts in composites are secured.

• Margins in composites are expected to improve, with a focus on automation and efficiency.

• Project Services will focus on bulk haulage and exiting the Wacol facility in FY25.