ASX industrials stock SRG Global Ltd (ASX: SRG) has boomed over the last 12 months.
It is an engineering-led specialist construction, maintenance and mining services group operating across the entire asset lifecycle.
Since this time last year, its share price has risen 105.7%.
For context, the S&P/ASX 200 Industrials (ASX: XNJ) index is up just 5.5% in the same period.
This ASX industrials stock released H1 FY26 results on Tuesday.
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What did the company report?
On Tuesday, this ASX industrials stock released earnings results which included:
- Revenue up 20% to $743.9 million
- EBITDA up 20% to $71.0 million
- EDIT(A) up 26% to $53.2 million
- Net profit after tax (NPAT) up 27% to $33.7 million
- EPS up 20% to 5.5 cents
- Dividends per share up 20% to 3 cents.
Looking ahead, SRG Global upgraded its FY26 earnings guidance to $164 million to $168 million. It has also upgraded EBITDA guidance to $126 million to $130 million EBIT(A) for FY26.
Despite this, its share price fell more than 4%, before recovering somewhat yesterday.
What are experts saying?
Following the results, sentiment from brokers has been positive.
The Motley Fool's James Mickleboro reported yesterday that Bell Potter retained its buy rating and raised its price target following the result.
Similarly, the team at Morgans have upgraded the outlook for this ASX industrials stock.
Morgans said SRG Global reported a strong 1H26 with all key earnings metrics broadly in line with forecasts.
The broker also noted the core business (ex-TAMS) performed well, with a weaker E&C offset by a stronger maintenance performance, which underlines the company's diversification.
The balance sheet remains robust with net debt of just $21m, leaving the company well placed to pursue further growth opportunities. While the valuation has re-rated materially over the last ~12 months, SRG may continue to compound +20% EPS growth for the next few years through a combination of organic and inorganic growth.
Price target upside for this ASX industrials stock
Morgans has subsequently raised its price target to $3.20 (previously $3.00). This is slightly above Bell Potter's price target of $3.15.
Yesterday, SRG Global shares closed at $2.88.
Based on the revised target from Morgans, the broker sees a potential upside of approximately 11%.
The broker retained its accumulate rating.
We increase our EBITDA forecasts by +1% each year across our forecast period and EBITA by +2-3%. Target price rises to $3.20 (from $3.00). Accumulate maintained.
