SGH Ltd Reports $522.9 Million Net Profit, Up 12.6%, Raises Dividend to 32 Cents
SGH Ltd reported a solid 12.6% rise in net profit for FY2025 alongside a dividend increase, reflecting steady growth despite key asset sales. The company’s net tangible asset backing per share surged, signaling strengthened balance sheet resilience.
- Revenue up modestly by 1.2% to $10.74 billion
- Net profit attributable to members rises 12.6% to $522.9 million
- Underlying net profit before finance and tax grows 8.3% to $1.54 billion
- Final dividend increased to 32 cents per share
- Significant divestments including Boral USA and South Australian Road Services
Steady Growth in a Diversified Portfolio
SGH Ltd, a major player in Australia’s industrial services and construction sectors, has delivered a full year result for 2025 that underscores steady operational momentum. Revenue edged up 1.2% to $10.74 billion, while net profit attributable to shareholders climbed a notable 12.6% to $522.9 million. This performance reflects resilience across its core businesses WesTrac, Boral, and Coates, despite a backdrop of ongoing market challenges.
Underlying Profit and Dividend Strength
The company’s underlying net profit before finance costs and tax rose 8.3% to $1.54 billion, indicating solid earnings quality beyond one-off items. SGH’s board responded by raising the final dividend to 32 cents per share, up from 30 cents last year, signaling confidence in cash flow stability and shareholder returns. The dividend will be payable on 10 October 2025, with a record date of 12 September.
Balance Sheet Bolstered by Asset Backing
One of the standout metrics this year is the jump in net tangible asset backing per share, which surged to $6.29 from $4.70 a year earlier. This improvement reflects both operational earnings and strategic portfolio management, including the divestment of non-core assets. SGH’s balance sheet appears well-positioned to support ongoing investment and shareholder value creation.
Strategic Divestments and Portfolio Focus
During the year, SGH divested its 50% joint venture interest in South Australian Road Services and its wholly owned interests in Boral USA, Boval Investments BV, Covol Fuels No 2 LLC, and Headwaters Energy Services Corp. These moves suggest a sharpening of focus on core Australian operations and key equity stakes, including its approximately 30% holding in Beach Energy and 40% stake in Seven West Media.
Outlook and Market Implications
While the company did not provide explicit forward guidance in this release, the results and dividend increase imply management’s confidence in the underlying business fundamentals. Investors will be watching closely for further commentary in the upcoming Annual Report and any strategic updates that clarify how SGH plans to navigate evolving market conditions and capital allocation priorities.
Bottom Line?
SGH’s solid profit growth and stronger balance sheet set the stage for a pivotal year ahead as it refines its portfolio and shareholder returns.
Questions in the middle?
- How will SGH’s divestments impact its revenue and profit mix in FY2026?
- What are the growth prospects for core businesses WesTrac, Boral, and Coates amid economic uncertainties?
- Will SGH maintain or further increase dividends given its improved asset backing?
