Southern Cross Electrical Engineering (SXE) H2 2025 earnings summary

Executive summary

• Achieved record revenue of AUD 801.5 million (USD 801.5m), up 45.2% year-over-year, with record EBITDA of AUD 54.8 million, EBIT of AUD 45.9 million, and NPAT of AUD 31.7 million, continuing a multi-year trend of profitable growth.

• Infrastructure became the largest sector, accounting for 63.8% of revenue, more than doubling year-over-year, driven by major projects in energy storage, airports, and data centers.

• Completed the Force Fire acquisition, expanding into fire safety and industrial warehousing, contributing to recurring revenue growth and sector reach.

• Maintained a strong safety record with zero lost time injuries for the third consecutive year and a workforce of approximately 1,900 employees.

• Maintained a strong balance sheet with record year-end cash of AUD 88.6 million, no debt, and declared a fully franked final dividend of AUD 0.05 per share.

Financial highlights

• Revenue reached AUD 801.5 million, up 45.2% year-over-year; EBITDA was AUD 54.8 million, up 36.6%; EBIT was AUD 45.9 million, up 40.4%; NPAT was AUD 31.7 million, up 44.5%.

• Gross profit was AUD 105.9 million, up 28.1%, with gross margin at 13.2% (down from 15% prior year), but margins recovered to 13.7% in the second half.

• Record year-end cash of AUD 88.6 million, up 5.3%, despite AUD 33 million in acquisition payments and significant tax outflows; business remains debt-free.

• Declared a fully franked final dividend of AUD 0.05 per share, with total fully franked dividends paid in the year of AUD 19.1 million.

• Order book at AUD 685 million, slightly down from the prior year’s record but with strong activity, especially in infrastructure.

Outlook and guidance

• FY 2026 EBITDA guidance set at AUD 65–68 million, representing 18–24% growth over FY 2025.

• Anticipates continued strong pipeline in data centers, battery energy storage, and industrial warehousing projects.

• Guidance does not include potential contributions from future acquisitions; multiple acquisition targets under review.