Korvest Ltd has reported a record financial year with revenue up 16.2%, driven by major infrastructure projects, and declared a special dividend alongside plans for a significant Kilburn site upgrade.
- Record FY25 revenue of $119.57 million, up 16.2%
- Fully franked final dividend of 40 cents plus 10 cents special dividend
- Industrial Products segment led growth with major project contributions
- Galvanising plant overcame 17-day outage, aided by insurance recovery
- Board approved $7.4 million Phase 1 Kilburn site redevelopment
Strong Financial Performance Amid Infrastructure Demand
Korvest Ltd has closed FY25 on a high note, posting record earnings buoyed by increased activity in its Industrial Products segment. The company’s revenue climbed 16.2% to $119.57 million, reflecting robust demand for infrastructure-related supplies and fabrication services. This growth was primarily driven by two new major projects secured during the year, which compensated for the completion of earlier contracts.
The Industrial Products segment, anchored by the EzyStrut cable and pipe support business, saw steady contributions from both large-scale infrastructure developments and smaller industrial projects, particularly in NSW and Queensland. While the day-to-day market remained flat overall, these regions outperformed relative to the prior year.
Dividend and Operational Resilience
In recognition of its strong performance, Korvest declared a fully franked final dividend of 40 cents per share, maintaining the previous year’s payout, and added a special dividend of 10 cents per share. This follows an interim dividend of 25 cents, underscoring the company’s commitment to returning value to shareholders. Notably, the Dividend Reinvestment Plan remains suspended for the final dividend.
Operationally, the company faced a significant challenge when its galvanising plant experienced a 17-day outage in November 2024. Despite this disruption, production volumes increased year-on-year, aided by a major renewable energy project. Insurance coverage mitigated most of the associated costs, cushioning the impact on profitability. Additionally, energy efficiency initiatives helped reduce gas expenses despite rising prices.
Strategic Investment in Kilburn Site Expansion
Looking ahead, Korvest’s Board has greenlit Phase 1 of a $7.4 million redevelopment plan at its Kilburn facility. This phase involves constructing a new 3,000 square metre fabrication factory and a 500 square metre canopy, with work set to commence in the first half of FY26. Phase 2 will focus on machinery acquisitions and noise reduction measures, with an estimated spend of $4 million, subject to progressive approvals.
This expansion aims to boost production capacity and capability, enabling Korvest to better serve existing markets, pursue vertical integration, and capture new opportunities. The move signals confidence in the infrastructure sector’s outlook, which remains strong despite expectations that FY26 revenues may not match this year’s peak.
Outlook and Market Positioning
Korvest’s management remains cautiously optimistic, citing a solid pipeline of infrastructure projects secured or in bidding stages. While the day-to-day market is expected to hold steady or improve slightly, the company acknowledges that FY26 may not replicate FY25’s exceptional revenue levels. Investors will be watching closely for updates at the upcoming Annual General Meeting, where the company plans to provide further insights into trading conditions and strategic priorities.
Bottom Line?
Korvest’s record year and strategic Kilburn expansion position it well, but FY26 growth faces cautious headwinds.
Questions in the middle?
- Will Korvest secure additional major projects to sustain FY26 revenue growth?
- What is the timeline and certainty around recovering remediation costs from the third-party design fault?
- How will Phase 2 of the Kilburn redevelopment be funded and prioritized amid economic uncertainties?