SGH (SGH) H1 2026 earnings summary

Executive summary

• Revenue was broadly flat year-over-year at AUD 5.4 billion, with EBIT at AUD 844 million and NPAT up 2–2.7% to AUD 518 million, reflecting strong first-half FY26 results and improved margins.

• Operating cash flow surged 32% to AUD 1.1 billion, supporting a 7% increase in fully franked interim dividend to AUD 0.32 per share.

• EBITDA rose 1% to AUD 1.1 billion, with EBITDA cash conversion at 98%.

• Safety metrics improved significantly, with LTIFR down 36% and TRIFR down 31%.

• Net profit attributable to members from continuing operations increased by 2.7% to AUD 471 million.

Financial highlights

• Statutory NPAT was AUD 473 million, up 1%, after accounting for significant items.

• EBIT margin expanded to 15.6%, driven by profitability improvements at Boral and WesTrac.

• Net debt reduced by 4% to AUD 4 billion, with available liquidity of AUD 2.1 billion.

• Basic earnings per share from continuing operations was AUD 1.16–1.27, up from the prior period.

• Net tangible asset backing per share increased to AUD 7.14.

Outlook and guidance

• FY26 guidance for low to mid-single digit EBIT growth reiterated, supported by operational momentum and balanced sector outlook.

• Second half performance expected to be consistent with historical splits, with no material skew anticipated.

• The company expects to recognize AUD 379.9 million in remaining performance obligations, with 17% expected within the next 12 months.