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 underperformance in Surf Hardware International.

• Total net income from ordinary activities was $4.4 million, a 50% decrease year-over-year, primarily due to fewer Sawtell Commons lot sales and global market challenges.

• Declared fully franked dividends totaling 6.45 cents per share, maintaining a prudent approach to capital allocation.

Financial highlights

• Net assets at $207.7 million, with net assets per share at $3.87 as of 31 July 2025.

• Earnings per share was a loss of 6.17 cents, compared to a loss of 0.07 cents last year.

• Total shareholder return was 2.5%, including dividends paid.

• Operational net income from investment properties was $5.4 million; development property income was $1.5 million.

• Surf Hardware International posted a net loss of $3.8 million, mainly due to subdued overseas markets and US tariffs.

Outlook and guidance

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

• Stage 4 of Sawtell Commons (31 lots) is underway, with completion expected by early 2026.

• Anticipated improvements in Surf Hardware International's gross margins and supplier terms in FY26.