SKS Technologies Posts 92.8% Revenue Growth, EBITDA Up 161% in FY25

• FY25 revenue surged 92.8% to $261.7 million
• EBITDA rose 161.2% to $23.47 million, PBT up 219.8%
• Data centre revenue and work on hand more than doubled
• Bank facilities increased 61.9% to $34 million, zero debt maintained
• FY26 revenue guidance set at approximately $300 million

Strong Financial Growth Amid Expanding Market

SKS Technologies has delivered an impressive FY25 financial performance, nearly doubling its revenue to $261.7 million, up 92.8% from the previous year. This growth is underpinned by a surge in data centre projects, which have become a significant revenue driver alongside steady expansion in traditional electrical and communications services.

The company’s EBITDA climbed 161.2% to $23.47 million, while profit before tax soared 219.8% to $20.79 million, reflecting improved operational efficiencies and margin expansion. Notably, the profit before tax margin increased from 4.8% in FY24 to 7.9% in FY25, highlighting the benefits of SKS’s scalable cost structure and strategic focus on higher-margin work.

Data Centre Sector Fuels Growth Trajectory

Data centre revenue more than quadrupled, reaching $140.7 million in FY25, representing over half of total sales. This sector’s rapid expansion aligns with Australia’s booming data infrastructure market, forecasted to nearly double in capacity by 2030. SKS’s work on hand in data centres surged to $358 million, accounting for nearly 70% of its tender pipeline, underscoring strong future revenue visibility.

Despite the data centre focus, SKS’s traditional business lines, audio visual, communications, and electrical solutions, also grew by 15.2%, demonstrating balanced diversification. The company opened a new office in Western Melbourne to better serve data centre clients and foster repeat business, reflecting a strategic commitment to deepening customer relationships.

Robust Balance Sheet and Operational Enhancements

SKS strengthened its financial position by increasing bank facilities by 61.9% to $34 million while maintaining zero debt since FY23. Working capital grew by 212.9% to $16 million, supporting the company’s expanding operations and tender pipeline, which rose 46% to $517 million.

Operationally, SKS invested $1 million in new hardware and enhanced IT systems to improve forecasting, cost tracking, and project management. The company also bolstered IT security to meet Essential 8 standards and upgraded plant and equipment to reduce operator risk. These initiatives underpin SKS’s ability to sustain rapid growth while maintaining a strong safety culture, evidenced by just one lost time injury despite a doubling of employee hours.

Commitment to Indigenous Employment and Strategic Outlook

SKS Indigenous Technologies, a 51% owned subsidiary, continues to expand its footprint, employing 25 Indigenous electrical apprentices and delivering $27 million in revenue with growing profitability. This initiative supports SKS’s broader social responsibility goals and opens new market opportunities.

Looking ahead, SKS projects FY26 revenue of approximately $300 million, driven by sustained demand in data centres and traditional sectors. The company plans to pursue organic growth complemented by opportunistic acquisitions, supported by a flexible capital structure and evolving operational platform.

Bottom Line?

SKS Technologies’ FY25 results cement its leadership in Australia’s data centre boom, setting the stage for ambitious growth in FY26 and beyond.

Questions in the middle?

• How will SKS balance rapid data centre growth with its traditional business lines?
• What acquisition targets might SKS pursue to complement its organic expansion?
• How will evolving cybersecurity and regulatory demands impact SKS’s project pipeline?