SRG Global (SRG) H1 2025 earnings summary

Executive summary

• Achieved record 1H FY25 results with revenue of $619.7m, up 21% year-over-year, and EBITDA of $59.0m, up 31%, with EBIT(A) up 48% to $42.1m.

• Earnings per share (A) increased 35% to 4.6cps, and interim fully franked dividend rose 25% to 2.5c per share.

• Transitioned from net debt to a net cash position of $9.1m post-Diona acquisition.

• Fully integrated Diona acquisition, delivering early wins, expanding presence in water security and energy transition, and contributing $65.9m in revenue and $6.9m in profit before tax.

• Work in hand reached a record $3.4b, up nearly 80% year-over-year, with an 80% annuity/recurring earnings profile.

Financial highlights

• Revenue increased 21% year-over-year to $619.7m; EBITDA up 31% to $59.0m; EBIT(A) up 48% to $42.1m; NPAT(A) up 50% to $26.6m.

• EBITDA margin improved to 9.5% and EBIT(A) margin to 6.8% in 1H FY25.

• EBITDA to cash conversion reached 120% in 1H FY25.

• Available liquidity of $229m, including $105.1m cash and $123.9m undrawn facilities.

• Dividend per share increased to 2.5c, up from 2.0c in 1H FY24.

Outlook and guidance

• Upgraded FY25 EBITDA guidance to $125m–$128m and EBIT(A) to $91m–$94m.

• Record Work in Hand of $3.4b and Opportunity Pipeline of $8.5b support long-term growth.

• Earnings profile expected to be ~80% annuity/recurring in FY25 and beyond.

• Targeted EBITDA growth of 8–10% for FY26 and beyond.

• Positive exposure to high-growth sectors including water, defence, energy, resources, and transport.