GWA Group (GWA) H2 2025 earnings summary

Executive summary

• Delivered volume, revenue, and earnings growth despite declining markets, driven by disciplined execution of customer-first and profitable volume growth strategies.

• Revenue increased 1.2% year-over-year to $418.5m, with normalised EBIT up 2.8% and group volume stable.

• Fully franked dividends rose 3.3% to 15.5c per share, and a $30m share buyback will commence in September 2025.

• Strong focus on safety, with significant improvements in incident reporting and injury frequency rates.

• Continued investment in product innovation and digital platforms, with new product launches and enhanced digital trade hub.

Financial highlights

• Group revenue up 1% year-over-year, with Australia and UK growth offsetting a 15% decline in New Zealand.

• Normalized EBIT up 3% and normalized EBIT margin increased to 18.2%.

• Statutory EBIT and net profit after tax both up 12% year-over-year.

• Operating cash flow of $101.8 million and cash conversion ratio of 111%.

• NPAT increased 1.9% to $46.5m; EPS up 0.3c to 17.5c.

Outlook and guidance

• Australia expected to see cautious recovery amid structural headwinds, with focus on healthcare, aged care, and volume home builders.

• FY26 outlook anticipates cautious recovery in Australia amid structural headwinds; construction sector expected to lag economic recovery.

• Price increases of ~4% implemented in Australia and UK from February 2025.

• Capex expected at $4.0–6.0m; effective tax rate stable at 29–30%.

• Multi-residential segment expected to increase, but timing remains uncertain.