Data#3 (DTL) H2 2025 earnings summary

Executive summary

• Achieved record gross sales of $3.0 billion for FY25, up 9% year-over-year, with growth across all business units, especially managed services, maintenance services, and software solutions.

• Gross profit rose 7.3% to $289.7 million, with an average gross margin of 9.6%, and NPBT increased 11.4% to $69.1 million.

• EBIT increased 12% to $59.9 million, and basic EPS rose 11.1% to 31.12 cents; total dividend per share increased by 10.2% to 28.10 cents, with a payout ratio of 90.3%.

• Recurring revenue rose to 69% of total, reflecting a shift to multi-year subscription and as-a-service models.

• Major operational highlights include the launch of an Australian-based SOC, new Microsoft-managed security services, and recognition for workplace and sustainability excellence.

Financial highlights

• Revenue and other income (ex-interest) rose 5.8% to $853.0 million; gross profit margin was 34%.

• Net cash flows from operating activities were an inflow of $126.3 million, reversing a prior year outflow, and closing cash balance rose 29% to $356.7 million.

• Average daily cash balance increased to $267 million from $246 million in the prior year.

• Internal cost ratio improved to 79.7% from 80.6%, driven by restructuring, automation, and AI initiatives.

• Average day sales outstanding improved to 25 days from 27 days.

Segment performance

• Services: Gross sales nearly $400 million, up 6.7%; managed services grew 25%, maintenance services 8.6%. Gross margin at 36.6%.

• Infrastructure Solutions: Gross sales increased 4.2% to $570.7 million, with gross margin up to 12.5%.

• Software Solutions: Gross sales reached $2 billion, up 11%; gross margin at 3.6%.

• Managed Services and Maintenance Services saw strong growth due to large contract wins and multi-year agreements.