Schaffer Corporation (SFC) H2 2025 earnings summary

Executive summary

• Revenue increased 2% year-over-year to $229.7 million for FY25, with strong performance in manufacturing divisions.

• Statutory NPAT decreased 10% to $24.3 million, mainly due to lower unrealised revaluation gains at South Connect Jandakot; adjusted NPAT excluding Jandakot revaluation rose 16% to $22.0 million.

• Manufacturing NPAT rose 7% to $21.2 million, driven by Automotive Leather and Delta.

• Group Investments NPAT increased 75% to $3.3 million; South Connect Jandakot NPAT fell 66% to $3.0 million.

• Fully franked dividends maintained at $0.90 per share, with a final dividend of $0.45 per share declared.

Financial highlights

• Automotive Leather NPAT up 7% to $16.3 million; Delta NPAT up 9% to $4.9 million.

• Automotive Leather revenue grew 2% to $186 million.

• Delta achieved record revenue of $31.5 million, with strong 1H performance.

• EPS declined to $1.78 from $1.99 year-over-year.

• Solid cash generation of $28.3 million, though down from $48.7 million in FY24.

Outlook and guidance

• Automotive Leather expects 1H26 profitability similar to 1H25, with new program launches supporting volumes, subject to economic and currency risks.

• Delta anticipates near break-even performance due to a weaker and more competitive industry environment.

• Group Investments may see profit volatility due to regular revaluations.