Skellerup Holdings (SKL) H2 2025 earnings summary

Executive summary

• Achieved record EBIT of $78.0 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.

• Net profit after tax (NPAT) was $54.5 million, up 9% year-over-year, reflecting lower financing costs and strong operational performance.

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

• Dividend increased to 25.5 cents per share, up 6% year-over-year, with a 92% payout ratio.

Financial highlights

• EBIT: $78.0 million, up 7% year-over-year; EBITDA reached $94.9 million.

• Revenue: $353.5 million, up $22.9 million (7%) year-over-year; up 4% on a constant currency basis.

• NPAT: $54.5 million, up 9% year-over-year (adjusted for prior year non-recurring tax charge).

• Operating cash flow: $66.5 million, slightly down due to working capital investment and inventory build.

• Net debt reduced to $12.4 million, less than 4% of total assets, down 19% year-over-year.

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.

• Management anticipates a watershed period over the next 12–36 months, with potential for significant expansion and in-market capability development.

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