How EVZ Limited Boosted EBITDA Amid Sector Slowdown: What’s Next?
EVZ Limited reported a 9% revenue decline to $108 million in FY2025, driven by a slowdown in its Energy and Resources sector, yet achieved an 8% rise in EBITDA reflecting improved profitability. The company’s net profit after tax fell 42%, impacted by tax adjustments, as it pursues margin expansion and growth through acquisitions.
- 9% revenue decline to $108 million, mainly in Energy and Resources
- EBITDA increased 8% to $5.3 million despite lower revenues
- Net profit after tax down 42% to $1.24 million due to tax normalization
- Building Products division shows strong growth and backlog
- Strategic focus on margin improvement, recurring revenue, and acquisitions
Financial Overview
EVZ Limited’s FY2025 results reveal a company adapting to challenging market conditions with a clear strategic focus. Revenues fell 9% to $108 million, primarily due to a slowdown in the Energy and Resources sector, notably within its Brockman Engineering business. Despite this top-line contraction, the company managed to increase its EBITDA by 8% to $5.3 million, underscoring disciplined project selection and a sharpened emphasis on profitability.
Net profit after tax (NPAT) declined by 42% to $1.24 million, a drop largely attributable to the absence of a one-off tax credit that benefited the prior year. The current year reflects a normalized tax expense following the full recognition of carried-forward tax losses, providing a more sustainable earnings baseline.
Segment Performance
The Building Products division emerged as a standout performer, delivering strong revenue and profit growth. Syfon Systems reinforced its leadership in syphonic roof drainage across Australia and Southeast Asia, advancing its ASEAN expansion strategy. Tank Industries also continued its upward trajectory, benefiting from operational synergies. This division enters FY2026 with a healthy project backlog and a clear growth path.
Conversely, the Energy and Resources segment faced headwinds. Brockman Engineering grappled with the completion of legacy projects, labour shortages, and cost inflation, alongside a general slowdown in new project opportunities. Despite these challenges, Brockman retains strategic advantages in petrochemical and water infrastructure and is focused on restoring margins through disciplined execution and cost control. TSF Power reported modest profit and revenue growth and is positioned to expand in renewable gas and standby power markets as labour conditions improve.
Strategic Outlook and Governance
EVZ’s strategic priorities remain firmly anchored in margin enhancement, building recurring revenue streams, and scalable growth through acquisitions. The company is investing in operational excellence, leadership development, digital transformation, and sustainability initiatives to build resilience and future readiness.
Governance developments include the appointment of Richard Betts as a Non-Executive Director, bringing extensive ASX-listed company experience. The Board continues to uphold high standards of corporate governance, with comprehensive risk management and remuneration frameworks aligned to shareholder interests.
With a diversified portfolio and an active pipeline of projects, EVZ is positioning itself to deliver enhanced shareholder value in FY2026 and beyond, despite sector-specific challenges.
Bottom Line?
EVZ’s FY2025 results highlight resilience amid sector headwinds, setting the stage for margin-driven growth and strategic acquisitions in the year ahead.
Questions in the middle?
- How will Brockman Engineering address labour shortages and cost inflation to restore margins?
- What specific acquisition targets is EVZ pursuing to accelerate scalable growth?
- How will the company’s shift towards recurring revenue streams impact future earnings stability?
