SRG Global (SRG) investor relations material

Deal rationale and strategic fit

• Acquisition of a leading marine infrastructure services provider with over 25 years' experience, a workforce of 500+ specialists, and a strong national presence in Australia.

• Expands end-to-end, self-perform capability, combining land-based and marine infrastructure expertise for a full service offering.

• Diversifies and enhances recurring earnings profile, with 90% of revenue from multi-year term contracts and exposure to high-growth sectors such as resources, energy, transport, water, and defense.

• Provides a competitive advantage through strategic geographic footprint and critical shore-bases.

• Aligns with long-term strategy to build a diversified infrastructure services business and supports growth in recurring, annuity earnings.

Financial terms and conditions

• Acquisition price of $85 million on a cash-free, debt-free basis with normal working capital.

• Funded by $57.3 million in cash/debt and $27.7 million in escrowed shares for two years.

• Implied acquisition multiples of 2.7x FY26 EBITDA and 3.2x FY26 EBIT.

• Two-year earn-out: 100% of annual EBITDA above $30 million and below $40 million, 50% above $40 million.

• No capital raising for retail or institutional shareholders; deal funded through debt and vendor shares.

Synergies and expected cost savings

• Expected to deliver circa 25% EPS accretion in FY26 (pre-synergies).

• Revenue synergies expected through cross-selling and expanded service offerings, especially in defense and new geographies.

• EBITDA margin to increase from 9.7% to 10.6%, EBIT margin from 7.2% to 8.2%.

• Capital-light business model with capex of 2–3% of revenue.

• No significant cost synergies anticipated; focus is on growth and integration.