Symal Group Surges Past Forecasts with $1.76bn Work-in-Hand Boost
Symal Group Limited reported a robust FY25 with revenue and earnings growth exceeding Prospectus forecasts, underpinned by strategic acquisitions and a strong pipeline of contracts.
- FY25 normalised revenue up 15% to $901.7 million
- Normalised EBITDA rises 22% to $106.1 million, beating forecasts
- Work-in-hand grows 35% to $1.76 billion, boosted by Locale Civil acquisition
- Declared final dividend of 5.9 cents per share, reflecting strong cash flow
- FY26 EBITDA guidance set between $115 million and $125 million
Strong Financial Performance
Symal Group Limited has delivered a compelling FY25 financial performance, with normalised revenue climbing 15% year-on-year to $901.7 million and normalised EBITDA increasing 22% to $106.1 million. These results notably outpaced the company’s Prospectus forecasts, signaling robust operational execution across its diversified infrastructure services portfolio.
The company’s net profit after tax (NPAT) also surged 50% to $45.7 million, comfortably ahead of expectations. This growth was supported by a strong cash conversion rate of 121%, well above the historical average, enabling Symal to bolster its net cash position to $46.1 million.
Expanding Work-in-Hand and Strategic Acquisitions
Symal’s work-in-hand (WIH), the value of contracted but incomplete projects, expanded by 35% to $1.76 billion. This growth was driven by new contract wins and the strategic acquisition of Locale Civil, which added a minimum guaranteed revenue of $230 million over six years. The acquisition complements Symal’s existing operations and marks a deliberate entry into the high-margin utilities services market.
Additionally, the acquisition of Ascot Bins enhanced Symal’s waste management capabilities, expanding its fleet and geographic reach. These acquisitions align with Symal’s inorganic growth strategy, focusing on founder-led businesses that fit its vertical integration model and offer scalable, complementary skills.
Diversification and Innovation Driving Growth
Symal continues to diversify across resilient sectors including infrastructure, power and renewables, data centres, and defence. The company participated in 45 renewable energy projects during FY25 and holds significant work-in-hand in power and renewables (~22%) and infrastructure (~51%).
Innovation remains a key pillar, with investments in advanced technology, AI integration, and alternative fuels. The commissioning of a new recycling centre and resource recovery sorting line under its Sycle operations highlights Symal’s commitment to sustainable growth and environmental responsibility.
Outlook and Capital Management
Looking ahead, Symal has provided FY26 guidance for normalised EBITDA between $115 million and $125 million, reflecting confidence in continued organic growth and further acquisitions. The company declared a final dividend of 5.9 cents per share, representing 50% of pro-rata NPAT since listing, with a target payout ratio of 30-50% going forward.
Symal’s balance sheet remains strong, with substantial undrawn facilities and a net cash position supporting its growth ambitions. The company plans to complete the integration of Locale Civil and pursue additional strategic acquisitions to enhance its market presence.
Bottom Line?
Symal’s FY25 results and strategic moves position it well for sustained growth, but investors will watch closely how acquisition integrations and market conditions unfold.
Questions in the middle?
- How will the integration of Locale Civil impact Symal’s operational efficiency and margins?
- What pipeline of acquisitions is Symal targeting next to sustain its inorganic growth?
- How resilient is Symal’s work-in-hand amid potential shifts in infrastructure and renewable energy spending?
