SRG Global (SRG) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with revenue of $1,069.3m (up 32%), EBITDA of $98.5m (up 23%), and EBIT(A) of $65.6m (up 31%) year-over-year.

• EPS(A) increased 15% to 7.7cps and full-year dividend rose 13% to 4.5cps, fully franked, yielding over 6%.

• Transitioned from net debt of $17.0m in FY23 to net cash of $17.8m in FY24, with 117% EBITDA to cash conversion.

• Announced transformational acquisition of Diona for $111m, a market leader in water security and energy transition, expected to be 10% EPS accretive.

• FY25 EBITDA guidance raised to $125m, including 10 months' contribution from Diona.

Financial highlights

• Revenue grew 32% year-over-year to $1,069.3m, with EBITDA margin at 9.2% and EBIT(A) margin at 6.1%.

• NPAT(A) increased 26% to $40.3m; EPS(A) up 15% to 7.7cps.

• EBITDA to cash conversion at 117%, supporting strong liquidity.

• Dividend per share increased to 4.5cps, up 13% year-over-year.

• Robust balance sheet and liquidity, supporting growth and flexibility.

Outlook and guidance

• FY25 EBITDA guidance increased to $125m, reflecting 27% growth and Diona integration.

• Work in Hand at $3.0b, up 46% year-over-year, with 80% annuity/recurring earnings.

• Opportunity pipeline of $8.5b supports long-term sustainable growth.

• Positive exposure to growth sectors: water, defence, resources, transport, and energy transition.

• High visibility for FY25 earnings, maintaining strong track record of guidance and delivery.