Acrow (ACF) H1 2025 earnings summary

Executive summary

• Revenue rose 25% year-over-year to $126.6m, with EBITDA up 11% to $39.0m, driven by strong Industrial Access growth and acquisitions; Industrial Access now accounts for 50% of group revenue.

• Major contract wins include the $42m Perdaman project in WA and the largest-ever Jumpform/Screens contract for Meriton.

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

• Acquisitions of MI Scaffold, Benchmark Scaffolding, and ATEC enhance capabilities and support workforce development.

• Balance sheet flexibility improved with expanded debt facilities and $54m headroom.

Financial highlights

• Group revenue reached $126.6m, up from $101m year-over-year; underlying NPAT up 1% to $16.4m, reported NPAT down 24% to $9.4m due to significant items.

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

• Dividend increased to 2.9cps, fully franked, with expectations for a higher full-year dividend.

• Net debt rose by $23.3m to $92.0m, mainly from front-ended capex and earn-out payments; Net Debt/EBITDA at 1.3x.

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

Outlook and guidance

• FY25 guidance targets 27% revenue growth, 14% EBITDA, 11% NPAT, and 2% EPS growth at midpoint; guidance maintained despite project delays.

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

• Jumpform and Screens businesses expected to see significant growth in the second half and into next year.

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

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