Korvest (KOV) H1 2026 earnings summary

Executive summary

• Revenue increased 17.9% to $60.3 million for the half-year ended 31 December 2025, driven by strong activity in the Industrial Products segment and major project wins.

• Net profit after tax rose 33.2% to $5.44 million, reflecting improved margins and the absence of prior period one-off costs.

• Successful transition to a new ERP system and completion of key equipment upgrades, including a new galvanising kettle and burner management system.

• Kilburn site redevelopment commenced, with construction and key milestones on track.

Financial highlights

• Sales for 1H FY26 reached $60.3m, up 17.9% compared to 1H FY25.

• EBIT rose 36.3% year-over-year to $7.88m; NPAT increased 33.0% to $5.44m.

• EPS for 1H FY26 was 46.1¢; interim dividend declared at 25¢ per share, fully franked.

• Net tangible assets per share rose to $4.06 from $3.90 year-over-year.

• Operating cash flow for 1H FY26 was $2.74m, down from $7.12m year-over-year.

Outlook and guidance

• Major project activity is expected to increase in the second half, with two new infrastructure projects commencing.

• 2H major project activity expected to exceed 1H; day-to-day and small project markets to remain strong, subject to economic conditions.

• Improved 2H performance anticipated for Galvanising segment, underpinned by large projects and new energy-efficient systems.

• Second half performance expected to exceed first half but not match record FY25 PCP due to project phasing.