Korvest Delivers Record FY25 Earnings, Greenlights Major Kilburn Expansion
Korvest has reported record full-year earnings for FY25, driven by a surge in major project revenue and strong cash flow, while approving a significant expansion of its Kilburn manufacturing facility.
- Record sales of $119.57 million, up 16.2%
- EBIT and NPAT growth near 20%
- Major project revenue concentrated in second half
- Kilburn redevelopment approved, doubling key capacities
- Strong safety performance with zero lost time injuries
Robust Financial Performance
Korvest (ASX, KOV), a leading supplier of engineered solutions to infrastructure and construction sectors, has posted record earnings for the fiscal year ending June 2025. Sales climbed 16.2% to $119.57 million, while earnings before interest and tax (EBIT) surged 19.5% to $18.91 million. Net profit after tax (NPAT) rose 19.2% to $13.16 million, reflecting strong operational execution and market demand.
Operating cash flow also improved significantly, reaching $18.69 million, underscoring the company’s ability to convert earnings into cash. Earnings per share increased to 112 cents, supporting a fully franked dividend of 75 cents per share, including a special dividend of 10 cents.
Major Project Revenue and Operational Highlights
The company’s growth was notably driven by a substantial increase in major project revenue, predominantly in the second half of the year. Korvest completed multiple large-scale infrastructure contracts, with early works for FY26 already secured. While day-to-day and small project markets remained stable, the major projects segment delivered the bulk of the revenue uplift.
Operationally, Korvest maintained a strong safety record, achieving a lost time injury (LTI) free year. The galvanising division overcame a first-half operational setback, with a $599,000 insurance claim settled in the second half, mitigating the impact on profitability.
Strategic Kilburn Redevelopment Approved
In a significant strategic move, Korvest’s board approved a $7.4 million redevelopment of its Kilburn manufacturing facility. Scheduled to commence in October 2025 and complete by August 2026, the expansion will increase manufacturing footprint by 80%, doubling capacities in strut roll forming, flat bed laser cutting, and welding bays.
This redevelopment aims to alleviate existing capacity constraints, improve lead times, and enhance service levels. It also includes vertical integration of powder-coating and laser cutting processes, which are currently outsourced, positioning Korvest for greater operational excellence and market share growth.
Outlook and Market Positioning
Looking ahead, Korvest signals a solid pipeline of major infrastructure projects, although major project activity in FY26 is expected to be lower than FY25’s peak. The company anticipates steady or slightly improved conditions in smaller project markets, contingent on broader economic factors.
Korvest’s focus on automation, operational efficiency, and workforce development, alongside the Kilburn expansion, positions it well to capitalize on infrastructure sector growth. The company’s balance sheet remains healthy, with net assets increasing to $60.8 million and cash reserves more than doubling year-on-year.
Bottom Line?
Korvest’s record FY25 results and strategic capacity expansion set the stage for sustained growth amid evolving infrastructure demands.
Questions in the middle?
- How will the Kilburn redevelopment impact Korvest’s margins and delivery timelines?
- What is the visibility on major project awards and revenue for FY26 and beyond?
- How certain are the recoveries related to the $869,000 remediation costs from third-party design faults?
