The Tasmea Ltd (ASX: TEA) share price is in focus after the company reported FY26 results that comfortably beat guidance, with underlying EBIT of $118.1 million and underlying NPAT up 42% to $73.7 million.
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What did Tasmea report?
- Revenue surged 136% year over year to $1,293.3 million
- Underlying EBIT jumped 54% to $118.1 million, exceeding the $117 million forecast
- Underlying NPAT rose 42% to $73.7 million
- Final fully franked dividend of 8.5 cents per share; full year dividends up 32% (excluding specials)
- Operating cash flow climbed 126% to $147.1 million, representing 125% conversion of EBIT
- Strong organic EBIT growth of 18% across all segments
What else do investors need to know?
Tasmea's programmatic acquisition strategy continues to drive its expansion, with further specialist acquisitions in the pipeline. The company completed the WorkPac, Maxim Group, and JPS Group transactions, increasing exposure to key growth thematics such as data centres and energy infrastructure.
Segment results were robust, with electrical EBIT up 33% to $50.2 million, civil rising 81% to $32 million, and workforce solutions contributing after the December 2025 WorkPac acquisition. Tasmea remains highly cash generative, with a disciplined capital allocation—46.6% effective dividend payout, and net debt to pro-forma EBITDA sitting at just 0.4x at year-end.
The group's recurring maintenance services and customer diversification underpin a resilient, low-risk business model. Demand from industries like mining, resources, and infrastructure continued to support growth, and a strong contract win rate further de-risked FY27 earnings.
What did Tasmea management say?
Managing Director & Founder Stephen Young said:
Demand for our specialist services is as high as we have ever experienced.
What's next for Tasmea?
Looking ahead, Tasmea has upgraded its FY27 underlying EBITA guidance to a range of $205 million to $210 million, with NPATA forecast between $130 million and $133 million. The revenue pipeline is at a record level of visibility, with approximately 90% already secured, recurring, or under tender.
Management will continue its "twin pillar" strategy—organic growth and targeted acquisitions—to build scale across diversified segments. The company is focused on further contract wins in high-growth sectors including data centres, mining, and infrastructure, and aims to maintain strong returns on capital.
Tasmea Limited share price snapshot
Over the past 12 months, Tasmea shares have risen 124%, outperforming the All Ordinaries Index (ASX: XAO) by a significant margin.
