Skellerup Holdings (SKL) H1 2025 earnings summary

Executive summary

• Record first-half NPAT of $24.2 million, up 12% year-over-year, and record EBIT of $35 million, up 11%, driven by strong Agri division rebound and robust product portfolio.

• Revenue increased 5% to $165.3 million, with Agri division growth offsetting softer Industrial performance.

• Interim dividend increased by 6% to 9.0 cents per share, reflecting strong earnings and cash flow.

• Net debt reduced to $20.4 million, representing 6% of total assets.

• Strategic inventory build to mitigate risks from shipping delays, port interruptions, and potential U.S. tariff increases.

Financial highlights

• NPAT up 12% year-over-year to $24.2 million; EBIT up 11% to $35 million; revenue rose 5% to $165.3 million.

• Operating cash flow of $32.2 million, down 12% due to higher inventory investment for risk mitigation.

• Net debt at $20.4 million, 6% of total assets, down 23% from December 2023.

• Gross margin improved to $71.4 million from $67.1 million year-over-year.

• EPS increased to 12.33 cents; interim dividend of 9.0 cps declared.

Outlook and guidance

• FY25 NPAT guidance of $52–$56 million, with growth from new and existing products expected to offset market headwinds.

• Impact of potential U.S. tariff changes expected to be minimal for FY25 due to inventory strategy.

• Ongoing product pipeline development and pursuit of acquisition opportunities.

• Anticipated reduction in inventory in the second half, but likely to remain above FY24 levels for risk mitigation.

• Second half expected to be seasonally stronger, especially for Agri and Industrial Divisions.