Wagners Holding Company (WGN) H2 2025 earnings summary

Executive summary

• Revenue reached AUD 431.3 million, with strong growth in Construction Materials (+19%) and Composite Fibre Technology (+15%), offset by a decline in Project Services due to project completion.

• Net profit after tax rose to AUD 22.7 million, up from AUD 10.3 million year-over-year, reflecting improved margins and operational efficiencies.

• Operating EBIT increased 9.9% to AUD 41.8 million, driven by higher utilisation and margin expansion in core businesses.

• Strong operating cash flow enabled AUD 15 million in land acquisitions for new concrete plants and a 29% reduction in net debt to AUD 34 million.

• Declared a full-year dividend of AUD 3.2 cents per share for FY 2025, totaling AUD 6 million.

Financial highlights

• Group revenue was AUD 431.3 million, down 10% year-over-year due to project completion, but earnings and margins improved.

• Gross profit was AUD 139.9 million, with gross margin improving to 32.4% from 29.2% in FY24.

• Operating EBITDA was AUD 66.1 million, with an EBIT margin of 9.7% versus 8.0% in FY24.

• Net profit before tax doubled to AUD 32.6 million from AUD 16.8 million in FY24.

• Net debt reduced by AUD 13.6 million to AUD 34 million, supported by improved working capital and cash flow.

Outlook and guidance

• Market growth expected from Olympic infrastructure and strong residential sector in Southeast Queensland.

• Cement and quarry volumes forecast to increase, with three new concrete plants to be added in FY 2026.

• Composite Fibre Technologies to benefit from increased demand in ANZ utility networks and ongoing improvement in the USA.

• Project Services to see lower revenue as major contracts complete, with focus on new opportunities.

• CapEx in FY 2026 expected to be at least 50% higher than FY 2025, driven by plant builds and capacity upgrades.