Acrow (ACF) H1 2025 earnings summary

Executive summary

• Half-year revenue rose 25% year-over-year to $126.6m, with EBITDA up 11% to $39.0m, driven by strong Industrial Access growth and major contract wins such as Perdaman and Meriton.

• Industrial Access now accounts for 50% of group revenue, with organic growth and acquisitions as key drivers.

• Underlying NPAT up 1% to $16.4m; reported NPAT down to $9.4m due to acquisition-related costs.

• Record secured hire contracts and pipeline, both up 39% year-over-year.

• Balance sheet flexibility enhanced with expanded debt facilities and headroom for future acquisitions.

Financial highlights

• Revenue for the half reached $126.6m, up 25% year-over-year; Industrial Access revenue up 119% to $63.2m.

• Underlying EBITDA up 11% to $39.0m; EBITDA margin declined to 30.8% from 34.8% due to revenue mix shift.

• Underlying NPAT at $16.4m; statutory NPAT down 24% to $9.4m due to significant items.

• Net debt increased by $23.3m to $92.0m, mainly from front-ended capex and earn-out payments.

• Cash flow from operations at $23.5m, with a 70% conversion rate.

Outlook and guidance

• FY25 guidance: revenue up 27%, EBITDA up 14%, NPAT up 11%, EPS up 2% at midpoint.

• Medium-term outlook remains strong, supported by record secured contracts, major project commencements, and continued Industrial Access expansion.

• Deferred Queensland revenue (AUD 5m EBITDA) expected to boost FY2026.

• Gearing expected to decline in 2H FY25; capex to normalize after front-ended spend.

• Growth underpinned by Industrial Access, Jumpform, and new proprietary products.