Southern Cross Electrical Engineering (SXE) Investor presentation summary

Business overview and strategy

• Leading national provider of electrical, instrumentation, communications, security, fire, and maintenance services, diversified across sectors and geographies, with 85% of order book on the East Coast and 60% of FY26 revenues from electrical services.

• Growth strategy focuses on deepening sector presence, expanding geographically, and adding adjacent capabilities through organic growth and acquisitions.

• Exposure to strong tailwinds in data centres, infrastructure, electrification, and energy, with a multi-disciplinary approach and recurring revenues increasing.

• Successful acquisition track record, including Datatel, Heyday, Trivantage Group, MDE Group, and Force Fire.

Financial performance

• Underlying EBITDA rose 40.5% to $77.0m, and underlying EBIT increased 40.3% to $64.4m, both record highs.

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

• Revenue declined 10.3% to $718.7m as major projects completed, but gross profit rose 29.1% to $136.7m, with gross margin up to 19.0%.

• Record cash of $261.5m, driven by strong cash collection and $144.7m net equity raise.

• Record order book of $810m, up 18.2%, and fully franked final dividend of 7.5 cps declared.

Balance sheet and cash flow

• Cash increased to $261.5m, supported by a $150m institutional placement and strong EBITDA conversion.

• Remains debt free, with expanded financing facilities and significant headroom for future acquisitions.

• Record total dividends paid out ($18.9m), acquisition deferred payments ($4.7m), and WestConnex settlement ($26.6m) managed within strong cash flow.