Acrow Limited reports a record FY25 with sales up 23%, driven by an 83% jump in its Industrial Access division, now half of group revenue. Despite soft formwork markets, strategic acquisitions and growth initiatives underpin a confident outlook.
- Record FY25 sales revenue of $265.1 million, up 23%
- Industrial Access division revenue soars 83%, now 50% of group revenue
- Underlying EBITDA rises 8% to $80.2 million; NPAT up 4%
- EPS declines 3% due to share dilution; dividend steady at 5.85 cents
- Net debt increases to $123.3 million from acquisitions and growth investments
Robust Growth Amid Market Shifts
Acrow Limited (ASX, ACF) has delivered a standout FY25 financial performance, posting record sales revenue of $265.1 million, a 23% increase on the prior year. This growth was largely fuelled by the Industrial Access division, which surged 83% and now accounts for half of the company’s total revenue, a significant shift from 33% the previous year. Underlying EBITDA rose 8% to $80.2 million, while net profit after tax (NPAT) increased 4% to $34.3 million, underscoring the company’s successful diversification strategy.
Despite these gains, earnings per share (EPS) dipped 3% to 11.17 cents, reflecting an increase in the average number of shares on issue. The board declared a fully franked dividend of 5.85 cents per share, unchanged from the prior year, signaling confidence in the company’s cash flow stability.
Industrial Access, The New Growth Engine
The Industrial Access division’s remarkable 83% revenue growth was driven by both organic expansion and strategic acquisitions, including MI Scaffold, Benchmark Scaffolding, Above Scaffolding, and Brand Australia. This division’s recurring revenue model, supported by long-term contracts with blue-chip clients, has enhanced Acrow’s earnings resilience. Notably, the division secured a $42 million contract for the Project Ceres Urea Plant in Western Australia, marking a strategic foothold in Australia’s largest industrial access market.
Other key contract renewals, such as a $60 million agreement with BMA and a $28 million extension with Origin Energy, further cement the division’s strong pipeline. The company anticipates Industrial Access revenues approaching $200 million in FY26, with expansion plans targeting Western Australia and South Australia.
Mixed Conditions in Formwork and Other Divisions
While Industrial Access thrived, the Formwork division faced softer trading conditions, with revenue declining 5% amid project delays and cycling through major infrastructure works, particularly in Queensland. The Commercial Scaffold division also experienced reduced activity, impacting revenue and profitability. However, growth initiatives in Jumpform and Screens businesses showed promise, with Jumpform revenue nearly tripling and Screens securing a 76% increase in new contracts despite a slight revenue dip.
Capital Investment and Balance Sheet Position
Acrow invested $39.7 million in capital expenditure focused on growth areas such as Jumpforms, Screens, and Industrial Access equipment. This investment, alongside acquisitions, increased net debt by $54.7 million to $123.3 million. The company expanded its banking facility to $171.3 million to support future acquisitions and growth initiatives. Despite higher gearing, management expects debt levels to moderate in FY26 as cash flow improves.
Outlook, Strategic Positioning for Medium-Term Growth
Looking ahead, Acrow plans to pause M&A activity in FY26 to consolidate recent acquisitions and focus on organic growth. The company is well positioned to benefit from infrastructure tailwinds, particularly related to the Brisbane 2032 Olympics and increased government investment in transport and healthcare sectors. CEO Steven Boland highlighted the company’s dual-sector focus, general construction via Formwork and broad industrial markets via Industrial Access, as a key strength underpinning future growth.
Acrow’s strategy emphasizes expanding market share in underrepresented regions, developing proprietary products, and leveraging cross-selling opportunities across its integrated construction systems. While formwork conditions remain subdued in the near term, the company’s diversified portfolio and strong contract pipeline provide a solid foundation for sustainable growth.
Bottom Line?
Acrow’s pivot to Industrial Access is reshaping its growth trajectory, setting the stage for a pivotal FY26 amid evolving market dynamics.
Questions in the middle?
- How will Acrow manage rising debt levels while funding growth initiatives?
- What impact will subdued formwork markets have on overall profitability in FY26?
- Can Industrial Access sustain its rapid growth and margin stability amid increased competition?