Simonds Reports $318m Revenue, $13.6m EBITDA in 1H FY25 Despite Market Softness

Resilient Financial Performance Amid Market Softness

Simonds Group has reported a steady half-year performance for 1H FY25, posting an EBITDA of $13.6 million, up $1.5 million from the prior corresponding period. This growth in earnings before interest, tax, depreciation, and amortisation comes despite a 5.8% decline in revenue to $318.1 million, reflecting the ongoing softness in the residential construction market, particularly in Victoria.

The revenue contraction was driven by a notable 24% drop in site starts, down to 733 from 962, as the company navigates subdued demand and delays in residential growth recovery. However, Simonds offset this with improved margins and higher site start values, demonstrating disciplined cost management and operational efficiency.

Strategic Acquisition to Accelerate Growth

In a significant strategic move, Simonds signed a binding agreement to acquire 100% of Dennis Family Homes Pty Ltd, a deal expected to complete in early March. This acquisition is poised to expand Simonds’ footprint across metropolitan and regional Victoria and New South Wales, adding immediate scale with a 25% anticipated increase in site starts for FY26.

The deal not only supplements Simonds’ existing pipeline with jobs under construction and a forward order book but also brings access to Dennis Family Homes’ showroom network, lead database, and high-performing workforce. This positions Simonds to capitalize on a potential rebound in residential construction and strengthens its product portfolio with complementary offerings across multiple states.

Investment in Innovation and Diversification

Simonds continues to invest in product innovation and operational transformation, focusing on medium-density housing, small lot designs, and affordable housing solutions aligned with evolving market demands and regulatory requirements. The rollout of a new CRM platform and the launch of a speculative housing channel underscore the company’s commitment to enhancing customer experience and diversifying revenue streams.

Despite the challenging macroeconomic environment, including interest rate pressures and borrowing constraints, Simonds maintains a healthy liquidity position with $32.4 million available, ensuring capacity for strategic investments and working capital needs.

Outlook and Market Positioning

Looking ahead, Simonds expects residential margins to improve further, supported by increased productivity and higher-value jobs. The company is also poised to benefit from government-backed affordable housing initiatives and ongoing channel diversification. Operational cost efficiencies remain a priority to sustain competitiveness in a challenging market.

The integration of Dennis Family Homes will be a key focus, with anticipated cost synergies and expanded market reach. While the residential market remains soft, early signs of improving consumer confidence in Victoria offer cautious optimism for the second half of FY25.