SCEE Accelerates Growth with 45% Revenue Surge and Strategic Fire Safety Acquisition
Southern Cross Electrical Engineering Limited reported a robust 45% increase in revenue for FY2025, boosted by the acquisition of Force Fire Holdings and a strong profit uplift. The company also announced a doubled final dividend, signaling confidence in its expanding operations.
- Revenue up 45.2% to $801.5 million
- Net profit after tax rises 44.5% to $31.67 million
- Acquisition of Force Fire Holdings expands fire safety services
- Final dividend doubled to 5.0 cents per share
- Net tangible asset backing declines to 16.1 cents per share
Strong Financial Performance
Southern Cross Electrical Engineering Limited (ASX – SXE) has delivered a compelling financial performance for the year ended 30 June 2025, with revenue climbing 45.2% to $801.5 million. This surge was accompanied by a 44.5% increase in net profit after tax, reaching $31.67 million, underscoring the company’s effective execution in a competitive market.
The results reflect not only organic growth but also strategic expansion moves that have broadened the company’s service offerings and client base.
Strategic Acquisition Bolsters Service Capabilities
In a significant development during the year, Southern Cross Electrical Engineering acquired 100% of Force Fire Holdings Ltd on 1 April 2025. Force Fire, based in Sydney and established in 2004, specializes in fire safety solutions encompassing both mechanical and electrical systems. This acquisition aligns with Southern Cross’s strategy to diversify into adjacent markets and enhance recurring revenue streams through maintenance and service contracts.
Force Fire’s established relationships with facility managers, property owners, and builders provide Southern Cross with a valuable platform to deepen its footprint in fire safety services, a sector with steady demand and long-term growth potential.
Dividend and Shareholder Returns
Reflecting confidence in its financial health and future prospects, Southern Cross declared a final dividend of 5.0 cents per share, doubling the interim dividend paid earlier in the year. The company’s Dividend Reinvestment Plan remains available for shareholders wishing to increase their holdings.
However, the net tangible asset backing per share fell to 16.1 cents from 28.5 cents the previous year, a point that may prompt investors to scrutinize the balance sheet impact of recent acquisitions and capital deployment.
Outlook and Governance
The company’s results were audited with no qualifications, reinforcing the reliability of the reported figures. Southern Cross’s Annual General Meeting is scheduled for 14 October 2025, where further insights into strategy and performance are expected.
With the integration of Force Fire underway, the company appears well-positioned to capitalize on growing demand for integrated electrical and fire safety solutions, potentially driving sustained revenue and profit growth in the years ahead.
Bottom Line?
Southern Cross’s bold acquisition and strong earnings growth set the stage for a transformative year ahead, but investors will watch closely how the balance sheet evolves.
Questions in the middle?
- How will the Force Fire acquisition impact Southern Cross’s margins and cash flow going forward?
- What factors contributed to the significant decline in net tangible asset backing per share?
- Will Southern Cross continue to pursue acquisitions to fuel growth or focus on organic expansion?
