Skellerup Holdings (SKL) H1 2026 earnings summary

Executive summary

• Record NPAT of $28.9 million for H1 FY26, up 20% year-over-year, and record EBIT of $40.6 million, up 16%, driven by broad-based growth in Agri and Industrial divisions and strong international demand.

• Operating cash flow reached a record $38.8 million, up 20% year-over-year, reflecting earnings growth and working capital control.

• Interim dividend increased to 10.0 cents per share, up 11% year-over-year, reflecting strong performance and positive outlook.

• Net debt reduced to $17.5 million, representing 5% of total assets and 7% of net assets.

• Compound annual growth rate for NPAT over seven years reached 12%, and for EBIT, 11% over 7.5 years.

Financial highlights

• Revenue rose 11% year-over-year to $183.5 million, with broad-based growth across divisions and geographies.

• EBIT increased 16% to $40.6 million; NPAT up 20% to $28.9 million; EBITDA reached $49.4 million.

• Operating cash flow up 20% year-over-year, reaching a record for any half year.

• Gross margins improved in both industrial and agri divisions, with agri benefiting from higher dairy demand and productivity gains.

• Earnings per share reached 14.8 cents, and net debt down 14% from December 2024.

Outlook and guidance

• FY26 NPAT guidance raised to $57–$62 million, reflecting strong first-half results and robust near-term demand.

• Management remains cautious for H2 due to geopolitical uncertainty, incremental tariff costs, and potential FX headwinds.

• Second half expected to be slightly stronger than H1, but with a narrower gap than previous years.

• Ongoing investment in people, capability, and capacity to drive future earnings growth.

• 82% of revenue generated from international markets in the first half of FY26.