SRG Global Surges with Record 1H FY25 Earnings and Diona Integration
SRG Global has delivered a record first half in FY25, posting strong revenue and profit growth alongside a successful acquisition integration that boosts its water security and energy transition capabilities.
- 1H FY25 revenue up 21% to $619.7 million
- EBITDA rises 31% to $59.0 million; EBIT(A) up 48% to $42.1 million
- Transitioned to net cash position of $9.1 million post-Diona acquisition
- Diona acquisition fully integrated, enhancing water security and energy transition services
- FY25 EBITDA guidance upgraded to $125–128 million
Record Financial Performance
SRG Global has reported a landmark first half for FY25, with revenue climbing 21% year-on-year to $619.7 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 31% to $59.0 million, while EBIT(A), earnings before amortisation of acquired intangibles, rose an impressive 48% to $42.1 million. Net profit after tax (NPAT) also jumped 50% to $26.6 million, reflecting strong operational execution and margin expansion.
The company’s earnings per share (EPS) increased by 35% to 4.6 cents, underpinning a 25% rise in the interim dividend to 2.5 cents per share. Notably, SRG Global has transitioned from a proforma net debt position of $38.2 million following the Diona acquisition to a net cash position of $9.1 million, strengthening its balance sheet and liquidity.
Strategic Acquisition Boosts Growth
The successful integration of Diona, a specialist in water security and energy transition services, has been a pivotal development. Acquired in September 2024, Diona brings a complementary portfolio of long-term program and asset management contracts with government utilities and agencies, enhancing SRG Global’s recurring revenue base. The acquisition aligns with SRG’s strategy to deepen its footprint in high-growth sectors such as water infrastructure and energy transition, including renewables and gas pipeline maintenance.
Diona’s $1 billion work in hand and a robust $2 billion-plus pipeline provide SRG Global with significant revenue visibility and cross-selling opportunities. The combined entity now boasts a diversified infrastructure services business with approximately 80% of earnings derived from annuity or recurring contracts, a profile that supports sustainable and predictable cash flows.
Segment Strength and Market Position
SRG Global’s Maintenance & Industrial Services segment continues to drive growth, delivering $388 million in revenue and $56.8 million in EBITDA with a strong margin of 14.6%. The Engineering & Construction segment remains solid, contributing $231.7 million in revenue and $16.5 million EBITDA. Corporate overheads remain disciplined at 2.3% of revenue.
The company’s geographic reach spans Australia and New Zealand, servicing major clients across water, transport, resources, energy, and government sectors. Long-term contracts with entities such as SA Water, WaterNSW, and Transport NSW underpin a resilient earnings base. SRG Global’s focus on innovation, sustainability, and indigenous engagement further strengthens its market reputation and operational resilience.
Upgraded Guidance and Outlook
Reflecting its strong momentum, SRG Global has upgraded its FY25 EBITDA guidance to a range of $125 million to $128 million, with EBIT(A) expected between $91 million and $94 million. The company’s substantial $3.4 billion work in hand and $8.5 billion opportunity pipeline provide a solid foundation for continued growth.
SRG Global’s strategic transformation into a diversified infrastructure services business with a capital-light model and high recurring earnings positions it well to capitalise on long-term infrastructure investment trends, particularly in water security and energy transition sectors.
Bottom Line?
SRG Global’s record half and strategic acquisition set the stage for sustained growth amid evolving infrastructure demands.
Questions in the middle?
- How will SRG Global leverage Diona’s pipeline to accelerate cross-selling and margin expansion?
- What risks could arise from integrating Diona’s operations across diverse geographies and sectors?
- How might rising infrastructure spending in water and energy transition sectors impact SRG’s competitive positioning?
