Acrow (ACF) H2 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of $265.1m, up 23% year-over-year, driven by Industrial Access division growth, jump forms, and screens, offsetting softness in core formwork.

• Industrial Access now represents 50% of group revenue, with major contract wins and successful integration of recent acquisitions fueling expansion.

• Strategic focus on diversification, organic growth in WA and SA, and pausing M&A to consolidate recent acquisitions.

• Secured hire contracts up 27% YoY; pipeline up 15% YoY, indicating strong future demand.

• Safety performance improved significantly, with zero lost time injuries and a 100% reduction in total recordable injuries.

Financial highlights

• Revenue up 23% year-over-year to $265.1m; EBITDA increased from $74.6m to $80.2m, though margin declined from 34.7% to 30.3% due to sector mix.

• Underlying NPAT rose 4% to $34.3m; EPS down 3% to 11.17c due to increased share count; DPS flat at 5.85c, fully franked.

• Net debt increased to $123.3m, with net debt/EBITDA at 1.8x, expected to reduce to 1.4x.

• Cash conversion rate at 71%, impacted by strong sales in final months; working capital to sales at 27%.

• Reported NPAT down 9% to $23.3m due to significant items.

Outlook and guidance

• Industrial Access revenue expected to approach or exceed $200m in FY26, with strong contract pipeline and organic growth in WA and SA.

• Screens and Jumpforms businesses to expand nationally, especially in WA.

• Formwork expected to remain soft in the near term, especially in Queensland and Victoria, but anticipated to rebound strongly within 18–24 months.

• No major contract renewals due in industrial; key contracts have significant tenure.

• CapEx of ~$22–27m planned, focused on growth areas; M&A paused unless exceptional opportunities arise.