Dicker Data (DDR) H2 2025 earnings summary

Executive summary

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

• Performance was driven by software, PC refresh, infrastructure, and significant AI-specific deal contributions.

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

• Earnings per share rose 8.6% to AUD 0.474.

• The company maintained a large partner network with 10,000 active partners in Australia and 2,300 in New Zealand.

Financial highlights

• Gross revenue was AUD 3,876.0 million (+14.9% year-over-year); statutory revenue was AUD 2,569.1 million (+12.5%).

• EBITDA grew to AUD 159.4 million (+5.9%), and net profit after tax was AUD 85.6 million (+8.8%).

• Earnings per share reached 47.4c (+8.6%).

• Gross profit margin declined to 9.0% from 9.6% due to customer mix shift toward enterprise.

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

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 AUD 172.3 billion in 2026 (+8.9%), and New Zealand IT spending to hit AUD 25.6 billion (+10.4%).

• SMB segment expected to see renewed growth, with single-digit revenue growth and higher revenues due to price increases.

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