Service Stream (SSM) H2 2025 earnings summary

Executive summary

• Achieved strong financial performance with total revenue of $2.42 billion, up 1.2% year-over-year, and double-digit increases in earnings and profit, supported by robust operating cash flows and a strengthened net cash balance sheet.

• Secured over $4.2 billion in new contracts, expanding work-in-hand by 40% to $7.6 billion, with a 98% contract renewal rate and a diversified, long-term order book.

• Maintained industry-leading safety performance, including a 24% reduction in injury rates and significant improvements in sustainability and workforce diversity.

• Strengthened net cash position to $73.6 million and increased annual dividends, supporting improved shareholder returns.

• Completed major contract mobilizations and acquisitions, including the buyout of the South Australian Road Services JV.

Financial highlights

• Group revenue reached $2.42 billion, up 1.2% year-over-year, with underlying EBITDA at $146.1 million, up 13.1%, and EBITDA margin improved by 60 bps to 6.0%.

• 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%.

• Approximately 85% of FY 2026 revenue is already secured, 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.