K&S (KSC) H2 2025 earnings summary

Executive summary

• Operating revenue declined 9.7% to $744.8 million for FY2025, reflecting contract exits and lower customer volumes.

• Statutory profit after tax was $29.2 million, down 6.5% year-over-year, with underlying profit after tax falling 17.2% to $26.3 million.

• The year included a $4.9 million impairment reversal gain and a $0.7 million loss on an interest rate swap.

• Dividend per share was 16.0 cents, down from 18.0 cents in FY2024.

Financial highlights

• EBIT increased 3.6% to $46.5 million; EBITDA rose 3.5% to $90.7 million.

• Underlying profit before tax decreased 9.0% to $38.3 million.

• Net borrowings (excluding leases) rose 109% to $49.7 million, mainly due to property investments.

• Total assets grew 7.2% to $699.3 million; shareholders’ funds increased 5.0% to $373.6 million.

• Operating cash flow was $61.0 million, down 7.2% year-over-year.

Outlook and guidance

• The company expects the low growth economic environment and rising input costs to persist into FY2026, with margin improvements anticipated to partially offset these pressures.

• Conservative financial risk management and continued focus on working capital and profit improvement are planned.