Lycopodium (LYL) H1 2025 earnings summary

Executive summary

• Revenue for HY2025 was $167.4 million, with NPAT of $25.2 million, reflecting a year-over-year decline, but supported by strong operational performance and over 1,400 staff globally.

• Completed acquisition of 60% of SAXUM, expanding presence in the Americas and cement industry, funded entirely from cash reserves and with no new debt.

• Order book at $456 million and opportunity pipeline at $4.1 billion, with addressable market up 40% due to geographic expansion.

• Maintained a balanced, diversified project portfolio across commodities, geographies, and clients, with high project utilization and robust staff levels.

• Major global projects underway in resources, industrial processes, and rail infrastructure sectors.

Financial highlights

• Revenue for the half-year was $167.4 million, EBITDA $39.5 million, NPAT $25.2 million, and PBT $35.8 million, all above targets but down year-over-year.

• Cash at bank increased to $77.1 million after funding SAXUM acquisition from reserves; no new debt or equity raised.

• EPS at 63.5 cents, interim dividend of 10 cents per share fully franked; normalised dividend 38 cents per share including SAXUM allocation.

• Net profit margin at 15.1% for HY2025, with gross margin at $99.1 million.

• Net cash inflow from operating activities increased to $20.8 million year-over-year.

Outlook and guidance

• Full-year FY2025 guidance: revenue of $320–$340 million and NPAT of $37–$43 million, with expected warranty provisions and project phasing impacting H2 margins.

• SAXUM acquisition expected to contribute immediately to revenue and profitability, supporting geographic and sector diversification.

• Strong long-term demand and opportunity pipeline across all sectors, with no shortage of work anticipated.