Skellerup Holdings (SKL) H2 2026 earnings summary

Executive summary

• Achieved record revenue and earnings in FY 2026, with sustained growth over seven years and a focus on precision-engineered products for high-performance applications.

• Compound annual revenue growth was 7%, and normalized NPAT CAGR was 12% over seven years.

• Achieved record EBIT of NZD 89.3 million, up 14% year-over-year, and record normalized NPAT of NZD 64.2 million, up 18%.

• Operating cash flow hit a record NZD 83.6 million, up 26% year-over-year, supporting capital investment, dividends, and debt reduction.

• Growth was broad-based across divisions and geographies, with new product launches and market expansion supporting future prospects.

Financial highlights

• FY 2026 revenue up 10% year-over-year (8% in constant currency), reaching NZD 390.1 million, with growth in all markets, especially the U.S.

• Normalized EBIT up 14% to NZD 89.3 million, excluding a NZD 4.8 million non-recurring gain; reported EBIT was NZD 94.1 million.

• Normalized NPAT up 18% to NZD 64.2 million; reported NPAT up 24% to NZD 67.7 million.

• Gross margin improved by 1 percentage point to 44%; EBIT margin also improved despite tariff and raw material cost pressures.

• Dividend per share increased 18% to NZD 0.30, with a 92% payout ratio; final dividend of 20.0 cps.

Outlook and guidance

• Confident in maintaining growth, with no change to business strategy; FY 2027 trading in line with expectations.

• Continued investment in technical capability, manufacturing modernization, and market presence.

• Geographic and application diversity expected to provide resilience against economic cycles.

• Tariff impacts in FY 2027 expected to be offset by pricing and cost actions.

• Confident in ability to capture further growth by serving existing and new customers.