Korvest Ltd reported a strong FY25 with revenues up 16.2% and net profit after tax rising 19.1%, supported by major infrastructure projects and operational resilience. The company declared a fully franked final dividend plus a special dividend, while advancing plans to expand its Kilburn manufacturing site.
- Revenue increased 16.2% to $119.57 million
- Net profit after tax rose 19.1% to $13.16 million
- Earnings per share climbed 18.3% to 112.0 cents
- Declared fully franked final dividend of 40.0 cents and special dividend of 10.0 cents
- Significant capital investments including Kilburn site expansion and fleet growth
Strong Financial Performance
Korvest Ltd has delivered a robust financial result for the year ended 30 June 2025, posting record revenues of $119.57 million, up 16.2% from the prior year. Net profit after tax increased by 19.1% to $13.16 million, reflecting both higher project activity and operational efficiencies. Earnings per share rose 18.3% to 112.0 cents, underscoring improved shareholder returns.
Dividend Boost Reflects Confidence
The company declared a fully franked final dividend of 40.0 cents per share, consistent with the previous year, alongside a special fully franked dividend of 10.0 cents per share. This special dividend was driven by the strong concentration of major project work during FY25. The dividend reinvestment plan remains suspended for the final dividend, signalling a preference for cash returns to shareholders.
Operational Highlights and Challenges
Korvest’s Industrial Products segment, including its EzyStrut business, benefited from increased major infrastructure projects, particularly in the second half of the year. While day-to-day market demand remained flat, the company secured new projects that will extend into FY26. The Production segment saw higher galvanising volumes despite a significant 17-day outage in November 2024, with insurance mitigating much of the associated costs.
Capital Investment and Expansion Plans
FY25 saw substantial capital expenditure including expansion of the company-owned truck fleet and commissioning of additional manufacturing equipment at the Kilburn facility. Looking ahead, Korvest has approved Phase 1 of a major Kilburn site expansion, involving a new fabrication facility costing approximately $7.4 million, with Phase 2 machinery investments to follow. This expansion aims to enhance capacity, improve service, and open access to new markets.
Sustainability and Governance Focus
Korvest continues to integrate environmental, social, and governance (ESG) principles into its operations. The company maintained ISO14001 accreditation and reported zero lost time injuries for the year, reflecting strong safety performance. Initiatives include noise management upgrades, solar power generation covering 35% of Kilburn’s electricity use, and employee wellbeing programs. Governance practices remain rigorous, with ongoing risk management and compliance training.
Bottom Line?
Korvest’s solid FY25 results and proactive capacity investments position it well to capitalise on Australia’s infrastructure pipeline, though market conditions and remediation cost recoveries warrant close watch.
Questions in the middle?
- Will Korvest secure additional major infrastructure projects to sustain growth in FY26?
- How will the Kilburn expansion impact operational efficiency and margins once completed?
- What is the timeline and certainty around recovering remediation costs related to the third-party design fault?