Skellerup Holdings (SKL) H2 2025 earnings summary

Executive summary

• Achieved record EBIT of $78 million for FY 2025, up 7% year-over-year, marking the ninth consecutive year of EBIT growth.

• Revenue reached $353.5 million, a 7% increase from the prior year, with broad-based growth across divisions and key markets, especially the US, Europe, and UK.

• Strong operating cash flow of $66.5 million funded investment, dividends, and debt reduction.

• International markets contributed significantly, with 80% of revenue from outside New Zealand and strong growth in North America, Europe, and the UK.

• Full-year dividend increased 6% to 25.5 cents per share, with a 92% payout ratio.

Financial highlights

• Revenue up $22.9 million (7%) year-over-year; up 4% on a constant currency basis.

• EBIT up $5.3 million (7%) year-over-year to $78 million; EBITDA reached $94.9 million.

• Underlying NPAT rose to $54.5 million, up $4.5 million (9%) from the prior year.

• Net debt reduced by $3 million to $12.4 million, less than 4% of total assets.

• Gross margin remained steady at just above 43%.

Outlook and guidance

• FY 2026 faces a $4–5 million headwind from tariffs, but management expects to offset this through revenue and earnings growth, with mitigation via inventory and pricing strategies.

• No acceleration in OpEx anticipated; margins expected to remain steady barring tariff impacts.

• Early FY 2026 trading in line with expectations, with strong demand in New Zealand for dairy and footwear.

• Continued focus on product innovation, manufacturing scalability, and market presence to drive growth.

• Target remains to grow NPAT in FY 2026 and beyond.