Tasmea (TEA) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of $247m (up 28% year-over-year) and 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 and West Coast Lining Systems, both contributing to Q2 earnings and expanding specialist service offerings.

• Interim fully franked dividend doubled to 5.0 cents per share, reflecting strong performance and up from 2.5 cents in the prior period.

• 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% (from 29.1% in H1 FY24); EBIT margin rose to 14.5%.

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

• 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).

Outlook and guidance

• FY25 statutory NPAT guidance upgraded to $52m, up from $48m at the November AGM, factoring in forecast incentive plan expenses.

• 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.

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

• Continued growth expected in H2 FY25, supported by strong commodity outlook and energy transition opportunities.