Tasmea Rewards Shareholders with 12c Special Dividend Amid 50% EBIT Growth
Tasmea Limited has declared a fully franked special dividend of 12 cents per share, reflecting robust financial performance and strong confidence in future growth prospects.
- Fully franked special dividend of 12.0 cents per share declared
- Dividend totals approximately A$28.27 million with A$12.12 million in franking credits
- Dividend Reinvestment Plan offers shares at 5% discount or A$2.85 per share
- Company reports sustained EBIT growth of around 50% per annum
- Special dividend will not impact FY26 earnings or growth ambitions
Strong Financial Performance Drives Special Dividend
Tasmea Limited (ASX – TEA) has announced a fully franked special dividend of 12.0 cents per share, signalling the company’s robust financial health and the Board’s confidence in its strategic direction. This dividend, amounting to approximately A$28.27 million, is a direct reflection of Tasmea’s impressive earnings before interest and tax (EBIT) growth, which has averaged around 50% annually over recent years.
Dividend Reinvestment Plan Enhances Shareholder Value
Alongside the cash dividend, Tasmea has extended an attractive Dividend Reinvestment Plan (DRP) option to shareholders. Participants can reinvest dividends at a 5% discount to the volume weighted average price (VWAP) of shares traded between 12 and 18 June 2025, or at a fixed price of A$2.85 per share, whichever is lower. This initiative encourages shareholders to deepen their investment in Tasmea, with the company’s founders also opting to participate.
Strategic Confidence and Growth Outlook
The Board’s decision to return capital now is underpinned by a strong pipeline of organic and programmatic growth opportunities across key sectors such as resources, energy, infrastructure, and water. Tasmea continues to benefit from sustained customer demand driven by essential maintenance and the electrification of its customers’ operations. Importantly, the special dividend is not expected to affect the company’s FY26 earnings or growth trajectory, with full-year guidance anticipated to exceed long-term incentive plans.
Financial Strength and Flexibility
Tasmea maintains a strong and recurring cash flow profile supported by a decentralised portfolio of specialist industrial services businesses. The company also holds significant undrawn debt capacity, providing financial flexibility to support ongoing organic growth and potential acquisitions. Despite the special dividend payout, Tasmea’s franking credit balance remains healthy, ensuring the capacity for future fully franked dividends.
Rewarding Long-Term Shareholders
The special dividend serves as a tangible reward for the loyalty of Tasmea’s long-term shareholders. By returning accumulated prior period earnings and franking credits, the company acknowledges shareholder support while maintaining a balanced dividend payout ratio forecasted at around 35% of pro-forma net profit after tax for FY25, comfortably within its policy range of 30–50%.
Bottom Line?
Tasmea’s special dividend underscores its financial strength and growth confidence, setting the stage for a promising FY26.
Questions in the middle?
- How will the upcoming FY26 guidance shape investor expectations?
- What level of shareholder participation will the Dividend Reinvestment Plan attract?
- Could Tasmea pursue acquisitions leveraging its undrawn debt capacity in the near term?
