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 and major contract wins.

• Underlying EBITDA rose 8% to $80.2m; underlying NPAT increased 4% to $34.3m.

• Industrial Access now represents 50% of group revenue, up from 33% last year, reflecting successful diversification and 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% to $265.1m; Industrial Access revenue up 83% to $131.6m; recurring revenue rising.

• Underlying EBITDA increased to $80.2m; margin declined to 30.3% from 34.7% due to sales mix shift.

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

• Net debt increased to $123.3m, reflecting acquisitions and growth capex; net debt/EBITDA at 1.8x.

• Operating cash flow was $57.6m, with a 71% conversion rate; working capital/sales at 27%.

Outlook and guidance

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

• Screens and Jumpforms businesses to expand nationally, especially in WA; formwork expected to remain soft in the near term, particularly in Queensland.

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

• CapEx of ~$22–27m planned for FY26, focused on growth areas; M&A paused to consolidate recent acquisitions.