K&S (KSC) H2 2025 earnings summary

Executive summary

• Underlying profit before tax for FY2025 was $38.3 million, down 9.0% year-over-year.

• Underlying profit after tax fell 17.2% to $26.3 million compared to the prior year.

• Statutory profit before tax rose 2.6% to $42.4 million, while statutory profit after tax declined 6.5% to $29.2 million.

• Operating revenues decreased by 9.7% to $744.8 million.

• Operating cash flow was $61.0 million, a 7.2% decrease from the previous year.

Financial highlights

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

• Net borrowings (excluding lease liabilities) more than doubled to $49.7 million.

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

• Net tangible assets per share increased 5.1% to $2.69.

• Return on assets was 6.1%, slightly down from 6.3% last year.

Outlook and guidance

• Earnings guidance remains uncertain due to economic conditions and lag in market response to interest rate cuts.

• Low growth economic environment expected to persist in FY2026.

• Margin improvements anticipated to partially offset rising input costs.

• Focus remains on improving revenue quality and selective growth in key segments.