SKS Technologies Group (SKS) H1 2025 earnings summary

Executive summary

• Sales revenue for 1H25 more than doubled year-over-year to $115.9M, with net profit after tax rising to $5.78M, driven by increased project execution and a strong pipeline, especially in data centres.

• EBITDA rose 227.7% to $9.81M and NPAT increased 215.9% to $5.8M compared to 1H24.

• Declared inaugural fully franked interim dividend of 1.0 cent per share, to be paid April 2025.

• Work on hand doubled since 1H24, reaching $174M, with data centres & technology comprising 61.3% of the total.

• Safety record maintained with no serious injuries in over ten years, despite a 66.4% increase in productive hours in CY24.

Financial highlights

• Revenue and other income for 1H25: $116.5M, up 117% year-over-year; net profit: $5.78M; EBITDA: $9.81M; EBIT: $8.46M.

• EPS for 1H25 was 5.16 cents, up from 1.66 cents in 1H24.

• Net cash from operations increased fivefold to $19.0M; cash on hand at period end was $19.6M.

• No debt at period end; working capital nearly doubled year-over-year.

• EBITDA margin improved to 8.4% (from 5.6% in 1H24); EBIT margin at 7.3%.

Outlook and guidance

• FY25 revenue forecast at $260M, with a targeted PBT margin of 7%.

• Project pipeline surged from $354M in August 2024 to $570M in February 2025, with $334.8M in data facility projects.

• Positioned for both organic growth and opportunistic acquisitions, supported by robust working capital and bank facilities.

• Recruitment challenges noted due to rapid increase in work in hand.

• Continued strong demand and repeat business expected across all market sectors.