Southern Cross Electrical Engineering (SXE) H2 2026 earnings summary

Executive summary

• Achieved record underlying EBITDA of $77.0m, up 40.5% year-over-year, and underlying EBIT of $64.4m, up 40.3% year-over-year.

• Underlying NPAT reached $39.4m, up 24.3%, while statutory NPAT fell 77.6% to $7.1m due to $46.1m WestConnex arbitration settlement.

• Record cash position of $261.5m, supported by $144.7m equity raise and strong operational cash flow.

• Order book at a record $810m, up 18.2% year-over-year, positioning for future growth.

• Declared a record fully franked final dividend of 7.5 cps.

Financial highlights

• Revenue was $718.7m, down 10.3% year-over-year due to completion of major projects, but June was a record revenue month.

• Gross profit reached a record $136.7m, up 29.1% year-over-year, with gross margin at 19.0%.

• Overheads increased 15.7%, mainly from the full-year consolidation of Force Fire.

• Recurring revenues grew to $220m, representing 31% of total revenue.

• Record total dividends paid out at $18.9m.

Outlook and guidance

• FY27 EBITDA guidance set at a minimum of $100m, implying at least 30% profit growth.

• Strong pipeline in infrastructure, data centres, and renewables, with significant tailwinds from decarbonization and electrification.

• No material constraints anticipated for capturing growth; well-funded for organic and acquisitive expansion.

• Anticipated entry into MSCI Australia Small Cap, ASX 300, and targeting ASX 200 during FY27.

• Forecasting data centre revenues to triple in FY27.