Shares in construction products outfit Wagners Holding Company Ltd (ASX: WGN) have hit levels not seen in more than five years on a positive trading update.
The company, which was holding its annual general meeting on Friday, said in a statement to the ASX that it expected both half-year and full-year earnings to come in well above last year's results.
The company stated that it expected first-half EBIT to be in the range of $31 to $33 million, compared with $20.3 million for the same period last year, and full-year EBIT to be $52 to $56 million, compared with $41.8 million for FY25.
The company's shares hit a 12-month high of $3.77 on the news before settling back to be 10.6% higher at $3.70.
Solid results across the board
Managing director Cameron Coleman told the AGM on Friday morning that the last quarter of FY25 had been "particularly strong" for the company, and this had continued into the current financial year.
In the company's construction materials division, the demand for cement and concrete volumes had increased relative to last year, with margins improving in concrete due to high plant utilisation.
In the company's project services division, there had been "some improvement" in the bulk haulage business, "with scheduled price increases and lower repair and maintenance costs delivering improvement compared to the same period last year''.
Mr Coleman said:
Looking at the full year, a buoyant construction sector across South-East Queensland will provide strong demand for our construction materials. With the opening of at least two new plants in FY26, concrete volumes are expected to improve on the prior year, which drives volumes through our cement, fly ash and quarry businesses. Market conditions are expected to improve resulting in margin expansion.
Investing for the future
Mr Coleman said the company's capital expenditure would increase this financial year, "as we expand the business in preparation for the expected increase in demand for our products and services''.
The company had raised $30 million in a capital raise to fund this spending, but Mr Coleman said the benefits of the increase capex spend would not flow through to earnings until "FY27 and beyond".
Beyond FY26, he said, "The residential housing market in South-East Queensland coupled with the infrastructure demand for the Brisbane 2032 Olympics is anticipated to drive business growth''.
Wagners remains well placed to build on the momentum that is expected. Targeted capital investments will expand capacity, improve operational efficiency, and position the Group for long-term success.
Wagners was valued at $669.1 million at the close of trade on Thursday.
