Tasmea (TEA) H1 2025 earnings summary

Executive summary

• Achieved record H1 FY25 revenue of $246.7m, up 28% year-over-year, and record NPAT of $27.9m, up 77% year-over-year, driven by strong performance in mining, resources, energy, and infrastructure, as well as recent acquisitions.

• Successfully integrated Future Engineering Group (FEG) and West Coast Lining Systems (WCLS), both contributing to Q2 earnings and expanding specialist service offerings.

• Interim fully franked dividend doubled to 5.0c per share; EPS up 53% to 12.3c.

• Workforce grew by 14.3% to over 1,600 employees, mainly due to acquisitions.

• Expanded specialist trade capability and maintained industry-leading safety record with over 4,400 LTI-free days.

Financial highlights

• H1 FY25 revenue: $246.7m (+28% vs H1 FY24); H1 NPAT: $27.9m (+77% vs H1 FY24); H1 EBIT: $35.6m (+44% vs H1 FY24); gross profit margin increased to 30.5%; EBIT margin at 14.5%.

• Gross profit increased 33.7% to $75.1m; EBITDA rose 36.6% to $42.4m.

• Operating cash flow to EBIT conversion at 93.7%; working capital/revenue at 2.1%.

• Net debt increased to $85.9m, with net debt/EBIT at 1.1x (annualised Q2 basis).

• Basic and diluted EPS were 12.32c, up from 8.07c year-over-year.

Outlook and guidance

• FY25 statutory NPAT guidance upgraded to $52m, up from $48m at the November AGM.

• Strong demand in iron ore, copper, gold, renewables, and electrification sectors expected to support growth.

• Focus remains on organic growth and programmatic acquisitions, with several opportunities in the pipeline.

• Integration of FEG is ahead of plan; further strategic acquisitions are being pursued and expected to be earnings accretive.

• Q2 annualised NPAT run rate indicative of ongoing strong performance, supported by recent acquisitions.