Datatec (DTC) investor relations material

Executive summary

• Achieved another year of excellent performance, with FY 2026 gross invoiced income up 9.3% to $8.46 billion and gross profit up 9.6% to $997.8 million, driven by AI investment-fueled growth across most areas of operation.

• Adjusted EBITDA grew 17.8% to $290.1 million, nearly double the rate of gross profit, with underlying EPS rising 35% to 48.2 US¢, resulting in significant leverage between top and bottom-line growth.

• Record-high ordinary dividend payment of $0.24 per share declared, a 54.8% increase year-over-year.

• Software and services now comprise 71% of gross sales, aligning with mega-growth trends and increasing IT complexity.

• Strong performance in both Westcon and Logicalis International divisions, with progress in Latin America despite regional challenges.

Financial highlights

• Revenue increased 3.3% year-over-year to $3.67 billion; gross profit grew by 9.6% year-over-year to $997.8 million.

• Adjusted EBITDA margin improved to 7.9% from 6.9% year-over-year; operating profit up 29.5% to $206.1 million.

• Net finance costs significantly lower due to reduced interest rates and improved working capital management, supporting a 56.4% increase in profit before tax to $162.7 million.

• All earnings metrics improved significantly year-over-year.

• Final dividend of $0.14 per share, total dividend for the year $0.24 per share.

Outlook and guidance

• Expectation of continued strong financial performance into FY 2027, driven by cyber security, AI infrastructure, and hybrid-cloud demand.

• Strategic focus on operating leverage, quality of earnings, and cash generation amid global geopolitical uncertainty.

• AI-driven investment expected to be a multi-year theme, reshaping enterprise IT and business models.

• Strategic priority remains unlocking shareholder value as performance improves.

• Caution regarding the overall environment due to currency volatility, inflation, and supply chain risks.