Tasmea Surges with $600m Order Book, Eyes 32% NPAT Growth in FY26
Tasmea Limited has reported a robust FY25 with a record $600 million order book for FY26, underpinning a confident earnings outlook. The company’s strategic acquisitions and strong organic growth fuel a 32% NPAT increase forecast for FY26.
- Record $600m order book for FY26 ensuring earnings visibility
- FY25 pro-forma NPAT up 69% to $62.5m, exceeding guidance
- FY26 NPAT guidance raised to $70m, a 32% increase year-on-year
- Strong cash flow with 101% average EBIT to operating cash conversion over 5 years
- Strategic growth via programmatic acquisitions and electrification tailwinds
Robust Financial Performance and Growth Trajectory
Tasmea Limited has delivered a standout FY25 performance, highlighted by a pro-forma net profit after tax (NPAT) of $62.5 million, a 69% increase that comfortably exceeded its guidance. This momentum is underpinned by a record order book of $600 million secured for FY26, providing strong earnings visibility and confidence in the company’s growth trajectory.
The company’s FY26 NPAT guidance of $70 million represents a 32% uplift on FY25, reflecting both organic growth and the successful integration of programmatic acquisitions. Tasmea’s strategic focus on expanding its service offerings and cross-selling across its 25 subsidiaries continues to drive margin improvement, with pro-forma EBIT margins rising to 15.0% in FY25.
Cash Flow Strength and Balance Sheet Resilience
Cash flow generation remains a key strength for Tasmea, with an impressive average EBIT to operating cash flow conversion rate of 101% over the past five years. This robust cash conversion supports the company’s disciplined capital management framework, enabling ongoing investments in growth while maintaining a sustainable dividend payout ratio.
At the end of FY25, Tasmea reported a net debt to pro-forma EBITDA ratio of 1.0x, reflecting a strong balance sheet poised to fund further organic expansion and acquisitions. The company’s ability to self-perform specialist services rather than subcontract enhances operational control and margin resilience, setting it apart in the industrial services sector.
Strategic Acquisitions and Market Tailwinds
Tasmea’s growth strategy is anchored in a twin-pillar approach – organic growth complemented by programmatic acquisitions. Recent acquisitions such as Future Group, Vertex Group, and Flanco Group have expanded Tasmea’s footprint in electrification, civil, and water & fluid segments, sectors benefiting from structural tailwinds like infrastructure upgrades and renewable energy integration.
The company’s exposure to long-term growth trends, including electrification and maintenance of ageing fixed plant in mining and energy sectors, positions it well to capitalize on rising demand. Tasmea’s increasing portfolio of Master Service Agreements (MSAs) and Facilities Management Agreements (FMAs); growing from 41 at IPO to over 70; underpins a high recurring revenue base and strong customer retention.
Shareholder Returns and Management Alignment
Tasmea has demonstrated a consistent track record of delivering shareholder returns, with dividends growing at a compound annual growth rate (CAGR) of 53% since FY21, excluding special dividends. The company declared a fully franked final dividend of 6.0 cents per share for FY25, supported by a strong dividend reinvestment plan uptake, including substantial participation from founders and executive directors.
Founder-led and with over 60% ownership retained by founders and senior management, Tasmea benefits from strong alignment between leadership and shareholders. This culture of ownership is further reinforced by long-term incentive plans for approximately 100 employees, fostering a committed and performance-driven workforce.
Outlook and Market Positioning
Looking ahead, Tasmea reaffirms its FY26 guidance of $110 million EBIT and $70 million NPAT, anticipating continued margin expansion and a strong pipeline of acquisition opportunities. The company’s strategic positioning across essential industries, combined with its diversified service portfolio and national footprint, provides a resilient platform to navigate market dynamics and capitalize on growth opportunities.
With electrification and infrastructure replacement driving demand, Tasmea’s integrated service model and disciplined capital management offer a compelling investment proposition in the industrial services sector.
Bottom Line?
Tasmea’s strong FY25 results and confident FY26 guidance underscore its momentum, but investors will watch closely how it balances growth with integration risks and market shifts.
Questions in the middle?
- How will Tasmea sustain margin expansion amid ongoing acquisitions and integration?
- What impact could rising interest rates or economic headwinds have on Tasmea’s growth and cash flow?
- How effectively can Tasmea leverage electrification tailwinds to diversify revenue beyond mining?