Spirit Technology Solutions Ltd has reported a robust FY25 performance, driven by a 58% surge in Cyber Security revenue and a successful turnaround in its Secure Managed Technology segment. The company’s underlying EBITDA soared to $11 million, signaling strong momentum ahead.
- Underlying EBITDA jumps to $11.0 million from $1.7 million
- Cyber Security revenue grows 58%, now 46% of total business
- Secure Managed Technology returns to profitability
- Completed acquisition of Forensic IT to bolster cyber capabilities
- Positive FY26 outlook with plans for organic and inorganic growth
Strong Financial Turnaround
Spirit Technology Solutions Ltd has delivered a standout FY25 result, with underlying EBITDA (uEBITDA) leaping to $11.0 million, a remarkable increase from just $1.7 million in the prior corresponding period. This surge reflects the company’s successful strategic pivot towards cyber security and managed technology services, alongside a disciplined approach to restructuring and growth.
Revenue rose to $102.4 million, up from $90.9 million the previous year, despite a change in accounting policy under AASB 15 that now presents certain product revenues on a net basis. This adjustment, while affecting comparability, does not impact net profit figures but underscores Spirit’s evolving business model focused on integrated service delivery.
Cyber Security, The Growth Engine
The Cyber Security segment was the standout performer, with revenue climbing 58% to $29.5 million and contributing 23% to uEBITDA margins. This segment now accounts for 46% of Spirit’s business, up from just 12% in FY23, positioning the company to capitalize on strong industry tailwinds as organisations increasingly demand comprehensive, security-optimised IT solutions.
Key to this growth was the acquisition of Forensic IT, completed in October 2024, which enhances Spirit’s digital forensics and incident response capabilities. Although integration challenges initially dampened performance, management has implemented structural changes aimed at improving outcomes, particularly targeting expansion in New South Wales.
Turnaround in Secure Managed Technology and Cloud Growth
Spirit’s Secure Managed Technology segment, which had been loss-making, returned to positive territory with a modest $0.3 million contribution, reflecting ongoing restructuring and a renewed focus under new leadership. Meanwhile, the Cloud and Communications segment grew underlying EBITDA by 18% to $7.7 million, supported by geographic expansion into Western Australia and South Australia and strengthened partnerships, notably with Cisco.
Looking Ahead, FY26 and Beyond
Spirit’s outlook for FY26 is optimistic, with expectations of improved profitability across all segments and Cyber Security poised to become the largest earnings contributor. The company plans to continue its growth trajectory through both organic initiatives; such as cross-selling and geographic expansion; and targeted acquisitions to broaden capabilities and market reach.
Management highlights several growth pillars including expanding strategic alliances, developing proprietary technology to accelerate delivery, and leveraging a national footprint with comprehensive security operations. The upcoming Annual General Meeting will provide further guidance on FY26 uEBITDA targets.
Bottom Line?
Spirit’s FY25 results mark a decisive step in its transformation, but the true test will be sustaining momentum amid integration challenges and competitive pressures.
Questions in the middle?
- How effectively will Spirit integrate Forensic IT to unlock its full potential?
- What specific FY26 uEBITDA guidance will management provide at the AGM?
- Can Spirit maintain its rapid Cyber Security growth while scaling other segments?