Austco Reports $81.4M Revenue and $13M EBITDA in FY25
Austco Healthcare has reported a robust FY25 with revenues climbing 40% to $81.4 million and EBITDA jumping 62% to $13 million, driven by organic growth and strategic acquisitions.
- Revenue increased 40% to $81.4 million
- EBITDA rose 62% to $13.0 million
- Unfilled Contracted Revenue remains strong at $53.8 million
- Gross margin grew but margin percentage slightly declined due to acquisitions
- No dividend declared; cash prioritized for growth investments
Strong Revenue Growth and Acquisition Impact
Austco Healthcare Limited has delivered a standout FY25 performance, with total revenues climbing 40% to $81.4 million. This growth was fueled by a combination of organic expansion and the consolidation of three recent acquisitions, all previously authorised resellers. While consolidation accounting rules mean some intercompany sales are now eliminated, the underlying organic business growth remains robust.
The company’s EBITDA surged 62% to $13 million, reflecting improved operational leverage and successful integration of acquisitions. This marks a significant step up from FY24’s $8.1 million, underscoring Austco’s ability to convert revenue growth into stronger profitability.
Margins and Cost Dynamics
Gross margin increased by 38% to $42.4 million, though the gross margin percentage dipped slightly from 52.7% to 52.0%. This modest decline is attributed to the acquisition of service-oriented businesses, which typically carry lower margins, and the lingering effects of US tariffs impacting input costs. Austco expects operational improvements and supply chain efficiencies in FY26 to support margin recovery.
Overhead expenses rose by $6.9 million to $32.6 million, largely due to the integration of acquired businesses. Despite this, the company’s EBITDA margin improved significantly to 16.0%, highlighting effective cost management amid expansion.
Profitability and Tax Considerations
Net Profit Before Tax (NPBT) grew strongly to $8.1 million, nearly doubling the FY23 figure and reflecting sustained earnings momentum. However, Net Profit After Tax (NPAT) declined to $5.9 million from $7.1 million in FY24, influenced by a one-off $2.2 million contingent consideration expense and a higher effective tax rate of 26%. Adjusted for these factors, underlying profitability remains solid.
Robust Contract Backlog and R&D Investment
Austco’s Unfilled Contracted Revenue (UCR) stands at a healthy $53.8 million, boosted by recent large contract wins in North America and the acquisition of G&S. This backlog signals strong future revenue streams as contracts are fulfilled.
The company continues to invest in innovation, allocating $4.8 million to research and development focused on its Tacera clinical communications platform. This commitment to product development aims to maintain Austco’s competitive edge in healthcare communication solutions globally.
Cash Position and Growth Outlook
With cash on hand increasing to $14.5 million and positive operating cash flow, Austco is well-positioned to fund ongoing growth without resorting to debt or equity raises. The board has decided against declaring a dividend, prioritizing reinvestment into organic and inorganic expansion opportunities.
Looking ahead, Austco expresses confidence in sustaining earnings growth into FY26, supported by strong market demand, integrated product offerings, and anticipated operational efficiencies.
Bottom Line?
Austco’s FY25 results set a solid foundation for continued growth, but investors will watch closely for margin improvements and contract execution in the year ahead.
Questions in the middle?
- How will Austco manage margin pressures from acquisitions and tariffs in FY26?
- What is the timeline and expected impact of integrating recent acquisitions on operational efficiency?
- How sustainable is the current pace of contract wins and backlog growth?
