SKS Technologies Group (SKS) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 reached $131.8 million, up 13.6% year-over-year, with EBITDA up 42.9% to $14.02 million and net profit after tax rising 52.5% to $8.81 million; EPS increased to 7.72 cents.

• Record work on hand reached $325 million as of February 2026, supported by significant project completions and a robust pipeline, especially in the data centre sector.

• Integration and acquisition of Delta Elcom expanded presence in New South Wales and strengthened data centre capabilities.

• Interim dividend declared at $0.035 per share, up from $0.01 in H1 FY25.

• The group maintains a strong order book and pipeline, though recruitment of skilled labour is increasingly challenging.

Financial highlights

• Cash flow from operations increased 46.6% year-over-year to $27.84 million, with cash on hand at $51.77 million.

• Expenses rose 11.1%, less than the 13.6% sales increase, supporting margin expansion; employee expenses increased by 24% to $59.4 million.

• Work in hand stands at $325 million, up $125 million from June 2025.

• NPAT grew 52.5% to $8.81 million; EPS up 57.6% to 7.72 cents.

• Dividend payments increased in line with profit growth.

Outlook and guidance

• FY26 revenue guidance of $340 million with a 10% profit before tax margin ($34 million), and $177 million already secured for FY27.

• Significant uplift expected in H2 FY26, with strong momentum into FY27.

• Continued focus on organic growth, with opportunistic acquisitions as a secondary strategy.

• Board remains confident in achieving FY26 guidance, citing robust demand in all sectors, especially data centres.