GWA Group (GWA) H2 2025 earnings summary

Executive summary

• Achieved improved financial results in FY25 despite challenging market conditions, with disciplined execution of customer-first and profitable volume growth strategies, and strong cost control.

• Volume and revenue growth in Australia and UK offset a decline in New Zealand due to weak local market conditions.

• Strong operating cash flow and lowest net debt since 2018 supported enhanced shareholder returns, including a 3% increase in full-year dividend and announcement of a $30 million share buyback.

• Continued investment in product innovation, digital platforms, and safety, with significant improvements in incident reporting and injury frequency rates.

Financial highlights

• Total revenue up 1.2% to $418.5 million year-over-year, with Australia and UK growth offsetting a 14.7% decline in New Zealand.

• Normalised EBIT up 2.8% to $76.3 million and margin improved to 18.2%.

• Statutory EBIT up 11.7% to $71.95 million; statutory NPAT up 12.3% to $43.4 million; normalised NPAT up 1.9% to $46.5 million.

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

• Full-year dividend increased 3% to 15.5 cents per share, fully franked; final dividend of 8.0 cents per share.

Outlook and guidance

• FY26 outlook anticipates cautious recovery in Australia amid structural headwinds, with focus on healthcare, aged care, and volume home builders.

• New Zealand construction sector expected to lag broader economic recovery; focus on merchant partnerships and product development.

• UK market stabilizing, with opportunities in affordable housing and eco-friendly products.

• Price increases of ~4% implemented in Australia and UK from February 2025; capex expected at $4.0–6.0 million.

• Multi-residential segment expected to increase, but timing remains uncertain; repair and renovation segment expected to remain subdued due to cost of living pressures.