Acrow Limited Reports 23% Revenue Increase and 8% EBITDA Growth in FY25

Robust Revenue Growth and Strategic Expansion

Acrow Limited has delivered a strong financial performance for the year ended 30 June 2025, with revenue climbing 23% to $265.1 million. This growth was largely propelled by the Industrial Access division, which expanded its revenue by 83%, reflecting both organic growth and the impact of three significant acquisitions completed during the year.

The acquisitions of Australasian Training & Education Centre Pty Ltd, Above Scaffolding Pty Ltd, and Acrow Energy and Infrastructure Services have not only broadened Acrow’s service offerings but also enhanced its geographic footprint, particularly in Queensland and New South Wales. These moves align with the company’s strategy to deepen its presence in engineered systems and industrial access services, positioning it well for anticipated infrastructure projects such as the upcoming Queensland Olympics.

Financial Performance and Margins

Underlying earnings before interest, depreciation, and amortisation (EBITDA) increased by 8% to $80.2 million, although the EBITDA margin contracted slightly to 30.3% due to a higher mix of labour-intensive Industrial Access activities. Net profit after tax (NPAT) on an underlying basis rose 4% to $34.3 million, while basic earnings per share excluding significant costs dipped marginally to 11.17 cents, impacted by a 7.5% increase in weighted average shares outstanding.

The Formwork division faced some headwinds with a 5% revenue decline, attributed to softer trading conditions, but maintained a stable contribution margin of 73%. In contrast, the Industrial Access division’s margin softened slightly to 36.6%, reflecting a greater labour hire component in its revenue mix.

Capital Structure and Dividend Policy

Acrow’s net debt increased significantly to $123.3 million, driven by acquisition payments and elevated capital expenditure aimed at supporting growth and contract commitments. This pushed the net debt to EBITDA ratio up to 1.8 from 1.1 in the prior year. The company successfully renegotiated debt facilities to secure improved terms and increased headroom, avoiding the need for equity raising.

Reflecting confidence in its cash flow and ongoing operations, Acrow declared a fully franked final dividend of 2.95 cents per share, maintaining the full-year dividend at 5.85 cents per share. The dividend reinvestment plan remains available, offering shareholders a discounted option to reinvest dividends into new shares.

Outlook and Strategic Positioning

With a strengthened balance sheet and expanded service capabilities, Acrow is well positioned to capitalize on the expected surge in infrastructure activity, particularly related to major projects in Queensland. The company’s focus on integrating recent acquisitions and managing operational efficiencies will be critical to sustaining margin improvements and delivering shareholder value in the coming years.