Dicker Data (DDR) H1 2025 earnings summary

Executive summary

• Gross revenue for H1 FY25 reached $1.84 billion, up 15.7% year-over-year, driven by accelerated PC refresh and significant AI-related transactions.

• EBITDA increased 9.4% to $75.4 million, with net profit before tax up 13.3% to $57.6 million and net profit after tax up 11.1% to $39.4 million; EPS rose 10.9% to 21.8 cents.

• Recurring software revenue neared $0.5 billion for the half, up 23%, with software segment leading growth at 20.9% year-over-year.

• Operational highlights include selection as distribution partner for Australia’s first sovereign AI factory, new partnerships with CrowdStrike, VAST, and Microsoft Copilot, and international expansion under consideration.

• Gross profit margin softened due to a shift toward more competitive enterprise deals, but cost management kept expenses as a percentage of revenue down.

Financial highlights

• Gross revenue reached $1.84 billion, driven by an acceleration in PC refresh, especially among enterprise and mid-market customers.

• EBITDA increased 9.4% to $75.4 million; operating profit before tax up 13.3% to $57.6 million.

• Net debt decreased by $6.3 million to $299.5 million; net cash from operating activities was $49.0 million.

• Fully franked dividends of 22.0 cents per share paid in H1 FY25, with ongoing commitment to interim dividends and DRP.

• Australia segment gross revenue grew 18.0% to $1.55 billion, with over $30 million from large-scale AI deployments; New Zealand revenue up 5.2% to $291.7 million.

Outlook and guidance

• FY25 gross revenue guidance is $3.7–$3.8 billion, representing 10–13% growth over FY24, with operating profit before tax of $120–124 million and PBT margin of 3.2–3.4%.

• H2 is expected to be stronger than H1, with growth driven by enterprise and mid-market; no SMB recovery assumed.

• PC refresh cycle and AI deals expected to continue driving growth, with some caution due to lumpy enterprise deals and strong prior-year comparables.

• Double-digit device sales growth is expected to continue, especially in enterprise and regulated sectors.

• Further AI ecosystem partnerships and contributions from the AI factory project are anticipated.