Gowing Bros (GOW) H2 2025 earnings summary

Executive summary

• Net loss after tax of $3.29 million for the year ended 31 July 2025, compared to a $0.04 million loss in the prior year, driven by lower development property sales and continued challenges in the Surf Hardware International segment.

• Total revenue and other income decreased to $61.7 million from $67.4 million year-over-year, reflecting subdued global economic conditions and fewer property sales.

• Declared fully franked dividends totaling 6.0 cents per share for the year, maintaining a prudent approach due to ongoing capital requirements for developments.

• Net assets per share before tax on unrealised gains stood at $3.87, with total shareholder return at 2.5% including dividends.

Financial highlights

• Total revenue and other income: $61.7 million, down from $67.4 million year-over-year.

• Net loss after tax: $3.29 million, compared to a $0.04 million loss in the prior year.

• Earnings per share: (6.17) cents, down from (0.07) cents last year.

• Dividends per share: 6.0 cents, slightly up from 6.45 cents last year.

• Net assets: $207.7 million; net assets per share: $3.87.

Outlook and guidance

• Domestic outlook remains positive, supported by interest rate cuts and improving consumer sentiment, especially in NSW.

• Ongoing global geopolitical uncertainty and sluggish international markets continue to pose risks.

• Expectation of stronger gross margins and improved bottom line for Surf Hardware International in FY26 due to supply chain restructuring.