Alfabs Australia Limited reported a robust 76% rise in net profit for FY2025, driven by strong mining contract deliveries and engineering demand, while boosting dividends and expanding operational capacity.
- Net profit after tax up 76% to $12.2 million
- EBITDA increased 39% to $27.6 million
- Final dividend raised 13% to 1.7 cents per share
- Delivered three underground mining development sets to Malabar mine
- Expanded workshops and launched new asset remediation profit centre
Strong Financial Performance
Alfabs Australia Limited has delivered a standout financial year for FY2025, with net profit after tax soaring 76% to $12.2 million and EBITDA climbing 39% to $27.6 million. This performance reflects the company’s successful transition into its first full year as an ASX-listed entity, underscoring its growing foothold in the underground coal mining services sector.
The company’s cash flow remains healthy, with net debt at $20.8 million, comfortably below its EBITDA and well within banking covenants, providing a solid foundation for ongoing investment and growth.
Operational Highlights and Growth Drivers
Key to Alfabs’ growth was the delivery of three underground coal mining development sets to the Malabar mine, each comprising critical equipment such as continuous miners and shuttle cars. Notably, FY2025 only captured 44% of the full-year income from this contract, suggesting FY2026 could see a meaningful uplift as the company benefits from a full 12 months of revenue.
Alongside mining, Alfabs’ engineering division maintained solid demand, contributing to projects including railway stations, bridges, and infrastructure linked to Western Sydney Airport and the Sydney Harbour Bridge Cycleway. The opening of a new project office in Sydney aims to bolster local recruitment and project delivery capabilities.
Expansion and New Profit Centres
Alfabs expanded its operational footprint by adding two new workshops in Kurri Kurri, increasing its aboveground mining workshop facilities to seven. This expansion supports an ongoing inventory overhaul and enhances in-house service capabilities, which the company notes improves profitability despite reducing third-party sales.
The launch of a mobile off-site Asset Remediation profit centre doubled the company’s industrial blast and paint offering, focusing on infrastructure abrasive blasting and protective coatings. Early results are promising, with a growing order book for FY2026.
Outlook and Challenges
While Alfabs’ secured order book remains strong, the company has faced some project commencement delays on Tier 1 projects due to upstream factors, which could affect scheduling and forward program delivery. However, the value of submitted tenders exceeds the current order book, indicating potential for future growth.
The underground coal mining industry continues to experience pricing pressures and production challenges, yet Alfabs remains cautiously optimistic, selectively acquiring assets and focusing on talent acquisition to support its growth and capital expenditure plans.
Governance Update
In governance news, Non-Executive Director Robert Neale resigned from the board in July 2025. The company acknowledged his contributions as it continues to strengthen its leadership team to support its strategic objectives.
Bottom Line?
Alfabs’ strong FY2025 results and operational expansion set the stage for a potentially even stronger FY2026, though project timing and industry headwinds warrant close attention.
Questions in the middle?
- How will full-year income from the Malabar contract impact FY2026 profitability?
- What strategies will Alfabs employ to mitigate project commencement delays?
- How might board changes influence corporate governance and strategic direction?