Southern Cross Electrical Engineering (SXE) H1 2026 earnings summary

Executive summary

• Underlying EBITDA rose 30.8% to $35.4m and underlying EBIT increased 25.5% to $29.1m year-over-year, both record half-year results.

• Statutory NPAT was a loss of $12.8m, compared to a $16.2m profit in the prior period, due to $46.1m in WestConnex dispute costs.

• Revenue declined 12.2% to $349.1m, mainly due to winding down of major infrastructure projects.

• Gross profit reached a record $65.9m, up 30.3% year-over-year, with gross margin improving to 18.9% from 12.7%.

• Force Fire acquisition contributed strongly, boosting commercial sector revenue and was consolidated for the full period.

Financial highlights

• Overheads increased 29.4% to $31.0m, mainly from Force Fire consolidation.

• Cash balance at 31 Dec 2025 was $58.8m, down from $88.6m at 30 Jun 2025, reflecting major outflows including dispute settlement and dividends.

• Remains debt free, with $96.8m in bank guarantees and surety bonds issued.

• Fully franked interim dividend of 2.5 cps declared, with $13.3m paid in dividends during the period.

• $4.7m in deferred consideration payments for acquisitions.

Outlook and guidance

• Underlying FY26 EBITDA guidance raised to at least $72m, up 31% on FY25.

• Order book at $710m, up 6% year-over-year, with 65% in infrastructure and over 85% on the East Coast.

• Significant growth expected from data centre, infrastructure, renewable energy, and electrification projects.

• Data centre revenues exceeded $120m in FY25, with similar levels forecast for FY26 and significant growth anticipated in FY27 and beyond.

• Multi-disciplinary offerings and acquisitions to support geographic and sector diversification.