Dicker Data (DDR) H2 2025 earnings summary

Executive summary

• FY25 delivered strong results, surpassing guidance with gross revenue at $3.88 billion (AUD 3.9 billion), up 14.9% year-over-year, and net operating profit before tax at $124.7 million, up 10.1% year-over-year.

• Earnings per share rose 8.6% to 47.4 cents, and net profit after tax increased 8.8% to $85.6 million.

• Growth was driven by software, AI-specific deals, PC refresh, and infrastructure business.

• Recurring software revenue reached $1.1 billion, up 22.4% year-over-year.

• 10,000 active partners in Australia and 2,300 in New Zealand.

Financial highlights

• Gross profit rose 7.2% to $347.7 million, with gross margin at 9.0%, down from 9.6% due to enterprise customer mix.

• EBITDA increased 5.9% to $159.4 million.

• Operating costs as a percentage of gross revenue improved to 5.1% from 5.4%.

• Australian revenue grew 17.2% to $3,284.8 million, including $45 million in new AI-specific deals.

• New Zealand profit before tax rose 37.2% to $10.7 million, despite flat revenue, due to cost reductions.

Outlook and guidance

• Management expects continued strong momentum into FY26, with AI and data center modernization as key growth drivers.

• Double-digit software growth anticipated, with significant AI deal pipeline expected to double in 2026.

• IT spending in Australia forecast to reach A$172.3 billion in 2026 (+8.9%), and New Zealand to $25.6 billion (+10.4%).

• SMB segment expected to see renewed growth, with single-digit revenue growth and stable or slightly declining unit volumes but higher revenues due to price increases.

• Data center systems forecasted to grow 20%+, driven by AI and modernization cycles.