SGH (SGH) H1 2025 earnings summary

Executive summary

• Revenue rose 2–2.2% year-over-year to AUD 5.5 billion, with EBIT up 10% to AUD 843 million and NPAT up 7% to AUD 508 million, driven by margin expansion, disciplined execution, and growth in WesTrac, Boral, and Beach.

• Statutory NPAT surged 134% to AUD 526 million due to lower significant item losses and asset sales.

• Operating cash flow increased 15% to AUD 821 million, with EBITDA cash conversion improving to 75%.

• Interim dividend raised 30% to AUD 0.30 per share, fully franked, marking the 30th consecutive period of stable or growing dividends.

• Completed full acquisition of Boral in July 2024, integrating it as a wholly owned business and expanding the retail shareholder base.

Financial highlights

• Revenue up 2% to AUD 5.5 billion; EBIT up 10% to AUD 843 million; EBITDA up 8% to AUD 1.1 billion; NPAT up 7% to AUD 508 million; statutory NPAT up 134% to AUD 526 million.

• EBIT margin improved to 15.3%; Boral EBIT margin at 14.3%; WesTrac EBIT margin at 11.1%; Coates EBIT margin at 28.6%.

• Operating cash flow up 15% to AUD 821 million; EBITDA cash conversion at 75%, up from 70% prior period.

• Net debt to EBITDA leverage at 2.18x, down from 2.3x post-Boral acquisition; 65% of debt fixed, average tenor 4.9–5.0 years, average rate 4.8%.

• Return on equity increased to 21.4% from 17.3% year-over-year.

Outlook and guidance

• Maintains guidance for high single-digit EBIT growth in FY25, supported by strong sector demand and HY25 performance.

• WesTrac outlook remains strong with robust capital sales and services pipeline; Boral volumes under pressure but supported by cost discipline and infrastructure activity.

• Coates expects recovery as infrastructure spending grows, though faces regional challenges; Beach narrows FY25 production guidance to 18.5–20.5 MMboe.

• Focus on deleveraging through operating cash flows, targeting net debt/EBITDA of 2.0x.

• Recent refinancing extended syndicated loan maturities to 2030 and 2032, supporting future liquidity.