SRG Global has delivered record financial results for FY25, marked by strong revenue growth and a transition to net cash, while setting an optimistic profit guidance for FY26.
- FY25 revenue up 24% to $1.32 billion
- Underlying EBITDA rises 29%, EBIT(A) up 43%
- Net cash position of $16.2 million post-Diona acquisition
- 2H fully franked dividend increased 20% to 3.0 cents per share
- FY26 guidance targets approximately 10% EBITDA and EBIT(A) growth
Strong Financial Performance in FY25
SRG Global Ltd has reported a standout financial year ending June 30, 2025, with revenue climbing 24% to $1.32 billion. The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) surged 29% to $127.1 million, while earnings before interest and tax adjusted (EBIT(A)) grew an impressive 43% to $93.8 million. This robust growth underscores SRG Global’s successful execution of its diversified infrastructure services strategy.
Notably, the company has transitioned from a proforma net debt position of $38.2 million following its acquisition of Diona, to a net cash position of $16.2 million. This shift reflects strong cash generation, with EBITDA to cash conversion exceeding 100%, a testament to operational efficiency and disciplined financial management.
Dividend Growth and Shareholder Returns
SRG Global’s board declared a fully franked second-half dividend of 3.0 cents per share, a 20% increase from the prior corresponding period. This brings the total dividend for FY25 to 5.5 cents per share, up 22% year-on-year. The dividend growth aligns with the company’s commitment to delivering shareholder value while funding its ongoing growth initiatives.
Strategic Integration and Market Position
The acquisition of Diona has been a pivotal development, with the business performing above expectations and now fully integrated as SRG Global Utilities. This division strengthens the company’s presence in water security and energy transition sectors, supported by long-term contracts with utility and government agencies. SRG Global’s diversified portfolio spans critical sectors including water, defence, resources, transport, and energy across Australia and New Zealand, positioning it well for sustainable growth.
Outlook and Growth Prospects for FY26
Looking ahead, SRG Global has provided guidance for approximately 10% growth in both EBITDA and EBIT(A) for FY26. The company’s record Work in Hand of $3.6 billion and an opportunity pipeline valued at $8.5 billion underpin this optimistic outlook. With around 80% of earnings derived from annuity or recurring sources, SRG Global’s earnings profile offers stability amid growth. The strategic transformation towards a diversified infrastructure services business continues to drive consistent expansion and high-quality returns.
Bottom Line?
SRG Global’s record FY25 results and confident FY26 guidance signal a company firmly on a growth trajectory, but investors will watch closely how it manages integration and market dynamics ahead.
Questions in the middle?
- What are the key assumptions underpinning the 10% EBITDA growth guidance for FY26?
- How will SRG Global sustain its strong cash conversion amid expanding operations?
- What risks could impact the integration and performance of SRG Global Utilities post-Diona acquisition?