Johns Lyng Group (JLG) H2 2025 earnings summary

Executive summary

• FY 2025 results aligned with guidance, with group revenue of $1.18 billion, up 1.8% year-over-year, and group EBITDA of $126.8 million, driven by strong core operations and contributions from acquisitions.

• Overcame a challenging first half due to benign weather, with a stronger second half driven by weather events and increased job volumes.

• Strategic acquisitions completed, including SSKB, Chill-Rite HVAC, Keystone Group, RIZON, ORVEX, and Remeed Solutions, expanding national platform and service capabilities.

• Secured and extended multiple multi-year contracts with major clients, strengthening recurring revenue streams and market position.

• Business operates across Australia, New Zealand, and the USA, with 65 ANZ locations and 53 US locations.

Financial highlights

• Group revenue for FY 2025 reached $1.18 billion, up 1.8% year-over-year; BAU revenue grew 15.2% to $1.098 billion.

• Group EBITDA was $126.8 million; BAU EBITDA rose 15.9% to $122.4 million.

• Net assets increased to $504.9 million at year-end; net debt stood at $102.0 million, with leverage at 0.8x.

• No final dividend declared; EPS (statutory) was 13.19 cents, down from 17.34 cents in FY24.

• Commercial Building Services generated $65.5 million in revenue and $6.1 million EBITDA, consistent with prior year.

Outlook and guidance

• FY 2026 revenue forecast at $1.264 billion, up 7.1% year-over-year; group EBITDA expected at $120.5 million, slightly below FY 2025 due to ongoing investment in growth pillars.

• BAU revenue projected to grow 12.1%, but group margin expected to contract to 9.5% from 10.8% in FY 2025, mainly due to latent cost base and lower CAT revenue.

• CAT revenue forecasted to decline to $32.6 million, reflecting lower contracted work-in-hand.

• Underlying EBITDA margin, adjusting for non-recurring items, expected to be 10.5%-10.8%.

• Focus on scaling strata and essential compliance & home services, executing U.S. growth, and maintaining operational efficiency.