Johns Lyng Group (JLG) H2 2024 earnings summary

Executive summary

• Achieved record FY24 BAU EBITDA of AUD 111.2 million, up 18.2% year-over-year, and total revenue of AUD 1.16 billion, with strong growth in core operations and successful execution of strategic initiatives across Australia, New Zealand, and the U.S.

• Demonstrated resilience amid cost and supply chain pressures, with significant work-in-hand from recent CAT events and expansion in the US and strata markets.

• Expanded to 159 locations globally, secured major insurance contracts, and launched the Customer Connect platform in the US, including a key partnership with Allstate.

• Completed several strategic acquisitions in strata management, HVAC, smoke alarm, and fire safety services, strengthening growth pillars and recurring revenue base.

Financial highlights

• FY24 revenue was AUD 1.16 billion; BAU revenue (excluding commercial construction) up 10% to AUD 929.7 million; CAT revenue AUD 205.6 million.

• Group EBITDA (excluding commercial construction) was AUD 138.3 million; BAU EBITDA reached a record AUD 111.2 million, up 18.2% year-over-year; CAT EBITDA AUD 27.0 million.

• U.S. revenue was AUD 250.2 million, up 7% year-over-year and 34% since acquisition.

• Operating cash flow was AUD 112.5 million, with cash conversion from EBITDA at 90.3% and net cash of AUD 21 million at year-end.

• Declared a record total FY24 dividend of AUD 0.094 per share, payout ratio at 54%.

Outlook and guidance

• FY25 revenue projected at AUD 1.13 billion, with BAU revenue (excluding commercial construction) up 15.1% to AUD 1.07 billion.

• Group EBITDA (excluding commercial construction and public company OPEX) forecast at AUD 138 million; BAU EBITDA at AUD 131.8 million, up almost 9%.

• CAT revenue forecast at AUD 51.1 million, all contracted work in hand, with potential upside.

• Expecting 10%-15% organic BAU growth in the U.S. and 16% growth in strata services for FY25.

• EBITDA margin expected to normalize after FY24 peak, with momentum from contract wins, acquisitions, and US expansion.