Service Stream (SSM) H2 2026 earnings summary

Executive summary

• Achieved strong financial and operational performance in FY26, highlighted by double-digit growth in EBITDA and NPAT, improved quality of earnings, and entry into Defence operations.

• Secured and mobilized major multi-year contracts across Defence, water, and industrial sectors, expanding total addressable markets and supporting future growth.

• Maintained a high-quality, diversified revenue base with a focus on annuity-style, lower-risk contracts and disciplined contract selection.

• Robust order book with AUD 8.2 billion in contracted work and up to AUD 14.2 billion including extension options.

Financial highlights

• Group revenue reached AUD 2.48 billion, up 2.3% year-over-year, driven by Utilities and Asset & Facilities growth.

• EBITDA rose 11.8% to AUD 163.4 million, with group EBITDA margin up 60 bps to 6.6%.

• Adjusted NPAT increased 18.4% to AUD 81.1 million; statutory NPAT was AUD 56.9 million after amortization and SaaS costs.

• Operating cash flow was AUD 186 million, with an EBITDA to OCFBIT conversion rate of 113.9%.

• Full-year dividend increased 18.2% to 6.5 cps, fully franked.

Outlook and guidance

• Confident of delivering earnings growth in FY27, supported by new Defence, water, and industrial contracts and improved quality of earnings.

• Targeting 5%-10% annual growth across all operations, with organic growth as the primary focus.

• 97% of revenue under contracts with inflation adjustment mechanisms, typically yielding 3%-5% uplift annually.

• Strong pipeline of O&M and minor capital works opportunities, with continued selective bidding.