SGH (SGH) H1 2026 earnings summary

Executive summary

• Delivered strong first-half FY26 results with EBIT of $844 million, flat year-over-year, and NPAT up 2% to $518 million, supported by margin expansion and disciplined execution across core businesses.

• Revenue was $5.4 billion, broadly flat or down up to 2% year-over-year, reflecting normalization in WesTrac capital sales and variable market conditions.

• Operating cash flow surged 32% to $1.1 billion, with EBITDA cash conversion at 98%.

• Interim fully franked dividend increased 7% to 32 cents per share.

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

Financial highlights

• Underlying EBITDA rose 1% to $1.1 billion, with EBIT margin expanding to 15.6% due to profitability improvements at Boral and WesTrac.

• Statutory NPAT was $473 million, up 1% after accounting for $46 million in significant items.

• Net debt reduced by 4% to $4.0 billion; available liquidity at $2.1–2.2 billion.

• EPS was $1.27, up 2% year-over-year; net assets increased to $5.2 billion.

• 70% of drawn debt fixed at an average rate of 4.9% and average maturity of 4.2 years.

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.

• Focus remains on disciplined execution, operational leverage, and innovation initiatives.

• Entering 2H FY26 with clear strategic priorities.

• Remaining performance obligations of $379.9 million, with 17% expected within 12 months.