Brickworks (BKW) H1 2025 earnings summary

Executive summary

• Diversified business delivered robust results, with statutory NPAT up 141% to AUD 21 million and underlying NPAT before significant items up 308% to AUD 76 million, despite cyclical lows in Building Products and a non-cash impairment in North America.

• Underlying EBITDA surged 472% to AUD 148 million, reversing a prior loss, mainly due to property revaluations and strong investment performance.

• Interim fully franked dividend increased by 4% to AUD 0.25 per share, marking the 11th consecutive year of growth.

• Operating cash flow improved 11% to AUD 59 million, supported by increased dividends and better working capital.

• Property rental income increased, vacancy rate remained below 1%, and cap rates were stable.

Financial highlights

• Underlying net profit after tax: AUD 76 million (up 308%); statutory net profit after tax: AUD 21 million (up 141%).

• Group underlying EBITDA: AUD 148 million (up 472%); total revenue: AUD 516 million, down 6% year-over-year.

• Net debt increased to AUD 721 million; gearing at 22%; banking covenant gearing at 16%, well below 40% limit.

• Operating cash flow up 11% to AUD 59 million; capital expenditure reduced to AUD 21 million.

• Underlying EPS: AUD 0.563; net tangible assets per share: AUD 19.26; Soul Pattinson market value: AUD 3.23 billion.

Outlook and guidance

• Property rental income growth expected from new developments and lease renewals, though growth may slow in 2025 as occupier demand decreases.

• Development profits anticipated in H2 2025 from the Amazon facility at Oakdale East.

• Building Products markets to remain subdued in 2025, with improvement forecast from 2026 and further strengthening in 2027.

• No specific EPS guidance provided, but positive long-term outlook based on structural demand and asset quality.

• Soul Pattinson investment expected to continue delivering stable, growing earnings and dividends.