Acrow (ACF) H2 2024 earnings summary

Executive summary

• Revenue increased 28% year-over-year to $215.3m, with EBITDA up 40% to $74.6m, driven by organic growth and acquisitions.

• Industrial Services now contribute 33% of group revenue, reflecting successful M&A and organic expansion.

• Underlying NPAT grew 8% to $33.0m, despite a higher tax rate (30% vs 8% prior year), with reported NPAT up 9% to $25.6m.

• Record contract wins and a pipeline exceeding AUD 200 million, with major project wins and new product launches supporting growth.

• Fully franked dividend of 3.0 cents per share for the year, up 11%, with a 27% return on equity as a full taxpayer.

Financial highlights

• Revenue rose to $215.3m from $168.5m year-over-year; EBITDA increased to $74.6m from $53.2m.

• Underlying NPAT reached $33.0m, up from $30.5m; reported NPAT was $25.6m, up from $23.5m.

• EPS (underlying) was 11.5c, flat year-over-year; DPS increased 33% to 5.9c.

• Net debt increased to $68.6m, with net debt/EBITDA steady at 1.1x.

• Total assets increased from AUD 218 million to AUD 312 million, mainly from acquisitions and CapEx.

Outlook and guidance

• FY25 guidance projects circa 20% organic revenue growth and double-digit EBITDA growth.

• Growth underpinned by record secured hire contracts (+17%), a strong pipeline (+33%), and full-year contributions from recent acquisitions.

• Industrial Services targeted to reach AUD 150 million revenue within 2 years, with further acquisitions planned.

• Major project commencements may shift between halves, but overall pipeline and market share remain strong.

• Formwork business positioned for major project pipeline, including QLD hospitals and Brisbane Olympics.