LaserBond’s EBITDA Falls 4.7% Despite 10.4% Net Profit Gain

• FY25 revenue up 3.6% to $43.48 million
• Net profit after tax increased 10.4% to $3.84 million
• EBITDA declined 4.7% to $9.01 million
• Final fully franked dividend of 0.8 cents per share declared
• Gateway Group equity investment contributed $737,292 in post-tax profits

Solid Revenue Growth and Profitability

LaserBond Limited has delivered a commendable financial performance for the year ending 30 June 2025, reporting revenues of $43.48 million, a 3.6% increase over the previous year. This growth, while modest, reflects the company’s steady foothold in the industrial engineering services sector. More notably, net profit after tax rose by 10.4% to $3.84 million, underscoring improved operational efficiency or favourable cost management despite a slight dip in EBITDA.

EBITDA Decline and Underlying Dynamics

EBITDA from ordinary activities fell 4.7% to $9.01 million, a contrast to the net profit increase. This divergence suggests that while earnings before interest, tax, depreciation, and amortisation faced pressure; possibly from increased operating costs or investment in growth initiatives; the company managed to enhance its bottom line through other means, such as tax benefits or non-operating income.

Strategic Investment in Gateway Group

LaserBond’s 40% equity stake in Gateway Equipment Parts & Services Pty Ltd contributed $737,292 in post-tax profits for FY25, a significant boost compared to the prior year’s four-month contribution. Although Gateway’s revenue is not fully consolidated into LaserBond’s reported figures, the combined pro forma revenue would have been $81.7 million, highlighting the potential scale of the partnership. This investment positions LaserBond to leverage growth opportunities in Western Australia and diversify its revenue streams.

Dividend Policy and Shareholder Returns

Reflecting confidence in its financial health and future prospects, LaserBond declared a fully franked final dividend of 0.8 cents per share, payable in September 2025. This follows an interim dividend of 0.4 cents, bringing total dividends for the year to 1.2 cents per share. The company also continues to offer a Dividend Reinvestment Plan, encouraging shareholders to compound their investment. The Board’s emphasis on dividends signals a balanced approach between rewarding shareholders and retaining capital for growth.

Outlook and Market Position

LaserBond’s results reflect a company navigating growth with prudence. The increase in net tangible assets per share by 8% to 29.37 cents indicates strengthening balance sheet fundamentals. While the EBITDA dip warrants attention, the overall profitability and strategic investments suggest LaserBond is positioning itself for sustained expansion. Investors will be watching closely how the Gateway Group integration evolves and whether future revenue consolidation will accelerate growth momentum.

Bottom Line?

LaserBond’s FY25 results reveal a company balancing growth and shareholder returns, setting the stage for a pivotal year ahead.

Questions in the middle?

• How will full consolidation of Gateway Group revenues impact LaserBond’s future financials?
• What factors contributed to the EBITDA decline despite rising net profit?
• Will LaserBond maintain or increase its dividend payout amid growth investments?