Service Stream (SSM) H2 2025 earnings summary

Executive summary

• Achieved strong financial performance with double-digit earnings and profit growth, robust cash flow conversion, and a strengthened net cash balance sheet.

• Expanded work-in-hand by 40% to $7.6 billion, with a 98% contract renewal rate and a diversified, long-term order book.

• Increased annual dividends and improved shareholder returns, supported by a strong net cash position.

• Maintained industry-leading safety performance, with a 24% reduction in injury rates and significant sustainability achievements.

Financial highlights

• Group revenue reached $2.42 billion, up 1.2% year-over-year, with underlying EBITDA at $146.1 million, up 13.1%.

• NPATA was $68.5 million, up 36.7%, and statutory NPAT was $59.2 million.

• Operating cash flow was $149 million, with a 104% EBITDA to OCF conversion.

• Net cash position improved to $73.6 million, up $65.7 million year-over-year.

• Full-year dividend increased 22% to $0.055 per share, fully franked.

Outlook and guidance

• FY 2026 earnings growth expected, supported by a strong order book and further utility margin improvements targeting 5–6%.

• 85% of FY 2026 work-in-hand under contract, with 80% in lower-risk R&M works.

• Continued investment in core markets, organic growth, and potential for strategic M&A.

• Strong pipeline of growth opportunities across current and adjacent markets.