IT services and solutions provider Data#3 Ltd (ASX: DTL) has posted record sales of $3 billion for FY25, up 9% on the previous year.
The Brisbane-based company's software solutions division provided the lion's share of the record sales figure, contributing $2 billion.
The division enjoyed increased demand for security, cloud, and Adobe products, which helped drive its yearly sales 10.9% higher.
Data#3's managed services division also saw solid growth with sales of $54.8 million, up 25% on the previous year.
The company stated that a series of "large" contracts, particularly in the resources sector, came into fruition during FY25, boosting sales.
Data#3 Chief Executive Officer Brad Colledge said the company outperformed the forecast growth rate for the Australian technology market amid significant challenges.
Our Net Profit Before Tax (NPBT) of $69.1 million is up 11.4% this financial year, driven by growth in gross profit of over 7% and improved operational efficiency achieved through automation and a restructure of our Infrastructure Solutions business during the first half.
The company also declared a final fully franked dividend of 15 cents per share, representing a 10.2% increase on the previous corresponding period.
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A good year
The ASX tech company's share price has been mounting a solid recovery throughout 2025 but remains a long way from its all-time high.
At the start of 2024, Data#3 shares were trading at around $9.78 each before they came crashing back to earth.
A year later, at the start of 2025, Data#3 shares had lost 37% of their value as they dropped to $6.15.
But 2025 has been a different story for Data#3 and its shareholders.
The company's share price is up more than 30% so far this year.
And Data#3 shares are showing little sign of slowing down.
Looking ahead
Colledge said Data#3's outlook remains positive as the company's strategic priorities for FY26 include further investments in lifecycle services.
While we expect Software Solutions growth to be under pressure in the short term as we manage through the Microsoft channel incentive transitions, we should see continued growth in our Infrastructure Solutions and Services businesses.
There is opportunity across end user compute, the network and server and storage. Our managed service offerings continue to mature, providing the opportunity for more recurring revenue and all our offerings, across all lines of business, will benefit from the evolution and growth of AI.
However, consistent with the company's previous practice, Data#3 is not providing specific FY26 guidance at this stage.
