SRG Global (SRG) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with EBITDA of AUD 98.5 million (up 23%) and EBIT of AUD 65.6 million (up 31%) year-over-year.

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

• Transitioned from net debt of AUD 17 million to net cash of AUD 17.8 million.

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

• FY25 EBITDA guidance increased to AUD 125 million, including a 10-month contribution from Diona.

Financial highlights

• Revenue grew 32% year-over-year to AUD 1,069.3 million, with strong margin performance and cash generation.

• EBITDA margin at 9.2%, exceeding guidance due to positive contingencies.

• NPAT increased 26% to AUD 40.3 million; EPS up 15% to 7.7 cps.

• EBITDA to cash conversion at 117%; strong operating cashflow before interest and tax of AUD 113.8 million.

• Dividend per share up 13% to 4.5 cps.

Outlook and guidance

• FY25 EBITDA guidance raised to AUD 125 million, reflecting 27% growth and Diona integration.

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

• Opportunity pipeline of AUD 8.5 billion 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.