The SGH Ltd (ASX: SGH) share price is in focus after the diversified group posted an 8% lift in EBIT to $1.54 billion and a 9% rise in net profit after tax (NPAT) to $924 million, alongside a 17% dividend increase for FY25.
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What did SGH report?
- Revenue rose 1% to $10.74 billion
- EBITDA increased 6% to $2.05 billion
- EBIT grew 8% to $1.54 billion
- NPAT up 9% to $924 million; statutory NPAT up 5% to $486 million
- Operating cash flow surged 49% to $1.95 billion
- Fully franked FY25 dividend of 62 cents, up 17%
- Leverage (Net Debt / EBITDA) improved to 2.0x
What else happened in FY25?
SGH delivered solid margin improvement, expanding its EBIT margin by 93 basis points to 14.3%, supported by disciplined execution across its industrial services businesses. Boral was a standout, posting 26% EBIT growth and notable margin gains, while WesTrac delivered higher earnings despite currency headwinds and strong demand from the WA resources sector.
The company made progress on safety, cutting its lost time and total recordable injury rates significantly. However, it also reported two workplace fatalities, underlining a continued focus on safety. SGH strengthened its balance sheet by reducing net debt and maintaining strong liquidity, with no major debt maturities until FY29.
What did SGH management say?
Ryan Stokes, Managing Director & CEO said:
We are pleased with the result delivered in FY25, which demonstrates the strength of our diversified Industrial Services businesses and the disciplined execution of the SGH Way operating model. Our EBIT growth of 8% was primarily driven by Boral and Westrac and was in line with our guidance, highlighting our ability to deliver growth in variable market conditions.
What's next for SGH?
Looking to FY26, SGH expects to keep executing its well-established operating strategy, targeting "low to mid single-digit EBIT growth." Management is focusing on operational excellence and margin improvement, with each major business—WesTrac, Boral, and Coates—pursuing tailored growth and efficiency initiatives.
With a strong balance sheet and robust cash flow, SGH says it's well-placed to ride long-term demand trends, especially in infrastructure, construction, and energy. The group's positive momentum is expected to continue underpinning dividends and growth for shareholders.
SGH share price snapshot
SGH has significantly outperformed the market over the past year. It has risen 40%, compared to 13% for the S&P/ASX 200 Index (ASX: XJO).
