EGL Posts $111.9M Revenue and $4.7M Profit After Tax in FY25
The Environmental Group Limited reported a robust 13.9% increase in revenue and a 7.3% rise in profit after tax for the fiscal year ended June 2025, driven by operational growth and a key acquisition.
- Revenue climbs to $111.9 million, up 13.9%
- Profit after tax increases 7.3% to $4.71 million
- EBITDA before significant items rises 9.9% to $11.1 million
- Acquisition of Advanced Boilers & Combustion boosts earnings
- No dividends declared amid ongoing investments
Strong Financial Performance Amid Strategic Expansion
The Environmental Group Limited has delivered a solid financial performance for the year ended 30 June 2025, posting a 13.9% increase in revenue to $111.9 million. This growth reflects the company’s expanding footprint in the environmental services sector, underpinned by both organic growth and strategic acquisitions.
Profit after tax rose 7.3% to $4.71 million, signaling effective cost management despite several one-off expenses. Earnings before interest, tax, depreciation, and amortisation (EBITDA) before significant items increased by 9.9% to $11.1 million, while EBIT grew 7.8% to $8.15 million. These metrics highlight the company’s improving operational efficiency and profitability.
Impact of Significant Costs and Acquisition
The year was marked by several significant costs, including $808,060 in acquisition and integration expenses, $306,799 for ERP system implementation, $163,047 in performance rights, and $96,771 in restructuring costs. These investments, while weighing on short-term profits, are indicative of the company’s commitment to long-term growth and operational excellence.
Notably, The Environmental Group gained control of Advanced Boilers & Combustion Pty Ltd in April 2025. This acquisition contributed $778,228 to profit before tax during the period, enhancing the company’s service capabilities and market reach. The integration of this entity will be a key focus moving forward, with potential to drive further earnings growth.
Balance Sheet Strength and Dividend Policy
The company’s net assets strengthened by 11.9% to $45.8 million, reflecting a robust balance sheet that supports ongoing investment and expansion. Despite the positive earnings trajectory, no dividends were declared or paid during the period, suggesting that management is prioritising reinvestment and integration activities over shareholder returns for now.
The Environmental Group’s financial statements were audited with an unmodified opinion, providing assurance on the reliability of the reported results. Investors will be watching closely for updates at the upcoming Annual General Meeting scheduled for 18 November 2025, where further strategic insights are expected.
Bottom Line?
With solid growth and strategic acquisitions underpinning its performance, The Environmental Group is poised for a pivotal year ahead as it integrates new assets and navigates investment costs.
Questions in the middle?
- How will the integration of Advanced Boilers & Combustion impact future profitability?
- What is the expected timeline and cost impact of the ERP implementation?
- Will the company consider resuming dividends once integration and restructuring are complete?
