Simonds Group delivered stable FY25 revenue and modest EBITDA growth despite one-off acquisition expenses, positioning itself for growth through strategic product and channel expansion in FY26.
- FY25 revenue steady at $665.6 million
- EBITDA rises slightly to $24.0 million despite $6.2 million integration costs
- Dennis Family Homes acquisition expands design library and market footprint
- Site starts decline offset by higher average job values
- Liquidity improves significantly to $47.7 million
Stable Financial Performance Amid Strategic Acquisition
Simonds Group Limited reported a steady revenue performance for the fiscal year ended 30 June 2025, with total revenue from continuing operations holding firm at $665.6 million, a marginal increase from the prior year. Despite a decline in site starts, the company managed to grow its earnings before interest, tax, depreciation, and amortisation (EBITDA) to $24.0 million, up $0.7 million year-on-year. This growth was achieved even as the company absorbed $6.2 million in one-off costs related to the acquisition and integration of Dennis Family Homes (DFH).
The DFH acquisition, completed during FY25, has been a pivotal move for Simonds, adding over 300 home designs and expanding its display home footprint. This strategic investment has not only broadened Simonds’ product portfolio but also enhanced its market reach across key Australian states and customer segments. The integration costs, while impacting short-term profitability, are viewed as an investment that will drive growth in the coming year.
Operational Shifts and Channel Focus
Site starts fell to 1,526 from 1,772 in the previous year, primarily due to a reduction in the insurance channel, which had been elevated in FY24 as Simonds supported homeowners affected by builder insolvencies. However, this volume decline was offset by an increase in the average value per site start and a shift in the revenue mix, including jobs already underway from the DFH acquisition.
Simonds is placing significant emphasis on growth in the Medium Density and Wholesale channels, investing in new product designs and operational capabilities. The company is also targeting expansion in the Knockdown Rebuild (KDRB) segment, tailoring new designs for infill markets and higher-margin projects. These initiatives align with broader market trends favoring affordable, turnkey homes and smaller lot solutions.
Improved Liquidity and Balance Sheet Strength
Liquidity improved markedly, with available funds rising to $47.7 million, up from $26.6 million the previous year. This improvement reflects better working capital management, including reduced build times and the resolution of complex insurance jobs that previously tied up capital. The balance sheet also reflects the acquisition’s impact, with intangible assets increasing due to goodwill and the valuation of the forward order book acquired from DFH.
Looking Ahead – Innovation, Efficiency, and Sustainability
Simonds is gearing up for FY26 with a suite of initiatives aimed at driving volume growth and operational efficiency. These include launching a new customer portal to enhance transparency and engagement, expanding AI-driven marketing capabilities, and rolling out new home designs nationally. The company is also committed to sustainability, building homes to meet or exceed 7-star energy standards and maintaining certifications in workplace health and safety, quality, and environmental management.
Market conditions are expected to stabilise, with modest recovery in housing starts anticipated in late calendar year 2025. Improved land affordability in key states and supportive government policies, such as the Housing Australia Future Fund, provide a positive backdrop for Simonds’ growth ambitions. The company’s strategic focus on diverse housing solutions and operational transformation positions it well to capitalise on these opportunities.
Bottom Line?
Simonds’ FY25 results reflect a company investing through acquisition and innovation to capture a recovering housing market in FY26.
Questions in the middle?
- How will the integration of Dennis Family Homes impact Simonds’ margins and cash flow in FY26?
- What is the expected timeline and scale for growth in the Medium Density and Knockdown Rebuild channels?
- How might changes in government housing policies influence Simonds’ project pipeline and profitability?