Wagners Holding Company (WGN) H2 2024 earnings summary

Executive summary

• FY24 group revenue reached AUD 481.4 million, up 1% year-over-year, with operating EBIT of AUD 39.7 million, an 81% increase versus FY23, exceeding guidance and driven by strong Construction Materials & Services performance.

• Net profit after tax rose 229% to AUD 10.3 million, with gross profit up 17% to AUD 140.5 million year-over-year.

• Significant debt reduction achieved, with net debt down 49% to AUD 47.6 million as of June 2024.

• A final fully franked dividend of AUD 0.025 per share was declared, totaling AUD 4.7 million, the first since 2018.

• Major earnings contribution from the Sydney Metro precast concrete tunnel segment project and improved margins in CFT Australia/New Zealand.

Financial highlights

• Gross margin improved to 29.2%, up from 25.2% in FY23; EBIT margin rose to 8.2% from 4.6%.

• Operating EBITDA increased to AUD 66.8 million from AUD 50.0 million in FY23.

• Cash flow from operations surged to AUD 72.6 million, up from AUD 16.8 million in FY23.

• Net debt decreased by AUD 45.8 million to AUD 47.6 million, with improved working capital and inventory management.

• Total impairments of AUD 8.8 million recognized, including AUD 5.6 million for EFC and AUD 3.2 million for Wacol.

Outlook and guidance

• Medium-term outlook expects continued strong demand for core products, supported by a robust order book and long-term contracts.

• FY25 is expected to see increased concrete volumes and growth in the steel business, with new plant investments driving capacity and efficiency.

• No major precast project will replace the Sydney Metro project in FY25, impacting earnings, but new long-term contracts in composites are secured.

• Margins in composites are expected to improve, with a focus on automation and efficiency.

• Focus remains on pursuing domestic and international project opportunities in Project Services.