Austin Engineering (ANG) H1 2025 earnings summary

Executive summary

• Group revenue rose 18.5% year-over-year to $170.2 million, with strong growth in the USA (+52%) and APAC, and all business units contributing.

• Underlying EBITDA increased 22% to $25.3 million, driven by APAC (up 117%) and USA (up 35%), while underlying NPAT grew 16% to $17.4 million; statutory NPAT was $10.6 million.

• Order book reached a record $224 million, up 22% year-over-year, led by strong demand in the Americas.

• Interim fully franked dividend increased 50% to 0.6 cents per share.

• Net profit after tax declined 28.5% to $10.6 million, impacted by higher costs and lower margins.

Financial highlights

• Revenue up 18.5% to $170.2 million, driven by North America (+52%), South America (+8%), and APAC (+3.8%).

• Underlying EBITDA up 22% to $25.3 million; EBITDA margin improved to 14.9%, with APAC margin at 21%.

• Net debt at $10.5 million, mainly due to inventory build, with reduction expected as inventory unwinds.

• Operating cash outflow of $3.5 million, impacted by steel inventory and timing of customer payments.

• Underlying NPAT up 16% to $17.4 million; statutory NPAT $10.6 million; basic EPS 1.74 cents.

Outlook and guidance

• FY25 revenue guidance reiterated at ~$350 million (up 12% from FY24), with underlying EBIT guidance of ~$50 million (up 30%).

• Strong order book and pipeline in Australia and the US support confidence in continued growth.

• Margin improvement expected in the US as contract labor is replaced by direct employees; Chile expected to return to profitability in H2.

• Operating cash flow expected to strengthen in Q3 FY25, supported by strong order intake.

• Balance sheet strength supports potential M&A, though no advanced opportunities currently.