K&S (KSC) H2 2026 earnings summary

Executive summary

• Underlying profit before tax for FY2026 was $32.1 million, down 16.0% year-over-year.

• Statutory profit after tax fell 22.0% to $22.8 million compared to FY2025.

• Operating revenues decreased by 2.1% to $729.2 million.

• Operating cash flow increased 4.3% to $63.7 million.

• Safety remains a focus, with lost time injury frequency rate rising to 6.8 from 4.2.

Financial highlights

• EBIT decreased 18.5% to $37.9 million; EBITDA down 10.0% to $81.6 million year-over-year.

• Dividend per share reduced to 11.0 cents from 16.0 cents, a 31.3% decline.

• Net borrowings (excluding lease liabilities) rose 12.4% to $55.8 million.

• Shareholders' funds increased 1.4% to $378.9 million.

• Net tangible assets per share up 1.5% to $2.73.

Outlook and guidance

• Persistent low growth economic environment expected in 2026.

• Risks to FY2027 results include input cost pressures, flat construction activity, and cessation of InfraBuild services.

• Anticipated partial offset from price, volume, and margin improvements in FY2027.