Servcorp (SRV) H1 2026 earnings summary

Executive summary

• Achieved record first half with underlying NPBIT up 34% to $47.0 million and underlying operating profit up 29% to $43.2 million for the six months ended 31 December 2025.

• Revenue and other income rose 11% year-over-year to $187.0m, with net profit after tax up 13% to $39.2m.

• Strong cash generation, with underlying free cash up 30% to $52.7m and unencumbered cash at $162.6m.

• Continued disciplined global expansion, including new locations and selective closures, increasing net office capacity and reinforcing a diversified international footprint.

• Enhanced digital ecosystem with new global payment gateway, SmartOffice app, and AI-driven client tools.

Financial highlights

• Statutory revenue reached $187.0m, up 11% year-over-year; underlying operating revenue was $182.0m, also up 11%.

• Statutory NPBT was $45.1m (+18%), statutory NPAT $39.2m (+13%), and underlying operating profit $43.2m (+29%).

• Underlying NPBIT was $47.0m (+34%), underlying free cash $52.7m (+30%), and underlying EPS rose 27% to 42.1c.

• Net tangible asset per share increased to $2.32 from $2.16 at June 2025.

• Return on funds employed reached 104% for 1H26, up from 74% in FY25.

Outlook and guidance

• FY26 guidance reaffirmed: underlying NPBIT between $80.0m and $84.0m, and free cash of at least $100.0m.

• Dividend for FY2026 expected to be no less than 32.0 cents per share, subject to market conditions.

• Continued investment in people, technology, and selective expansion to drive efficiency and growth.

• Focus on leveraging automation and AI to enhance scalability and productivity.

• Conservative growth expected, with momentum from H1 anticipated to carry into H2.