Service Stream (SSM) investor relations material

Executive summary

• Achieved strong financial and operational performance with double-digit earnings and profit growth, robust cash flow, and record contracted work in hand, supporting future growth.

• Work in hand expanded by 40% to $7.6 billion, with high contract retention and a diversified, long-term order book.

• Utilities division surpassed $1 billion in revenue, with significant margin improvement and ongoing optimization initiatives.

• Board declared a 22% increase in full-year dividend, reflecting strong results and confidence in future performance.

• Sustainability and safety initiatives delivered notable improvements in emissions, workforce diversity, and injury frequency rates.

Financial highlights

• Group revenue was $2.42 billion, up 1.2% year-over-year, with underlying EBITDA of $146.1 million, up 13.1%.

• Adjusted NPAT rose 36.7% to $68.5 million, aided by a one-off tax credit; statutory NPAT was $59.2 million.

• Operating cash flow reached $149 million, with a 104% EBITDA-to-cash conversion rate.

• Net cash position improved by $65.7 million to $73.6 million.

• Full-year dividend increased to 5.5¢ per share, fully franked, up 22.2% year-over-year.

Outlook and guidance

• Entering FY26 with a record $7.6 billion in contracted work, plus $5 billion in extension options, providing strong revenue visibility.

• ~85% of FY26 forecast revenues already secured in WIH, supporting earnings growth and further margin improvements, especially in Utilities.

• Utilities margins targeted to reach 5–6% in FY26, with ongoing incremental improvements.

• Telco revenue expected to be flat to slightly up, with margins remaining strong but softening slightly.

• Strong pipeline of growth opportunities across current and adjacent markets.