How Is Acrow Leveraging Industrial Access to Drive Growth Amid Infrastructure Surge?
Acrow Limited reported a 4% rise in underlying net profit for FY25, driven by strategic acquisitions and a growing industrial access division now contributing half of group revenue. Despite some formwork delays, the company maintains a strong project pipeline and steady dividends.
- Underlying net profit up 4% to $34.3 million in FY25
- Industrial access division now represents 50% of revenue
- Acquisitions of Brand Australia and Above Scaffolding integrated successfully
- Maintained dividends at 5.85 cents per share
- FY26 guidance signals revenue growth with moderated capital expenditure
Solid Financial Performance Amid Strategic Expansion
Acrow Limited (ASX – ACF) has delivered a steady financial performance for the 2025 fiscal year, with underlying net profit rising 4% to $34.3 million. The company’s diversified approach, particularly its expansion into industrial access services, has underpinned this growth despite some project timing challenges in its traditional formwork business.
The industrial access division, bolstered by the acquisitions of Brand Australia and Above Scaffolding, now accounts for half of Acrow’s revenue. This shift reflects a deliberate strategy to build a more resilient and recurring earnings base, supported by long-term contracts with blue-chip clients such as Origin Energy, Sydney Water, and BHP. These contracts provide a steady revenue stream less influenced by government infrastructure cycles.
Navigating Project Delays and Capital Efficiency
While the formwork segment faced delays, particularly in Queensland, the overall project pipeline remains robust. Major infrastructure projects like South Australia’s $15.4 billion River Torrens to Darlington project and various Olympics-related developments in Queensland promise multi-year opportunities. Acrow’s expanded hire fleet and capital-light industrial access operations have enabled the company to maintain a strong Return on Equity of 23.7%, balancing asset intensity with operational flexibility.
Capital expenditure peaked at $39.7 million in FY25, including investments in Jumpform systems and screens, but is expected to moderate to around $27 million in FY26. This moderation aims to strengthen cash flow and financial flexibility as the company consolidates recent acquisitions and focuses on organic growth.
Investing in Talent and Technology for Sustainable Growth
Acrow continues to invest heavily in workforce development through partnerships with universities and its registered training organisation, ATEC. With skilled labour shortages looming, these initiatives are critical to maintaining technical standards and supporting expansion. Additionally, the company is rolling out a new enterprise resource planning system in 2026, expected to enhance operational scalability and efficiency.
Board Evolution and Strategic Outlook
The Board welcomed two new directors in FY25, bringing expertise in digital transformation and infrastructure project management, aligning with Acrow’s growth ambitions. Looking ahead, the company anticipates a pause in mergers and acquisitions to focus on integrating recent purchases and expanding organically, particularly in Western Australia, South Australia, and the defence sector.
With the Australian Government’s commitment to over $126 billion in infrastructure projects over the next five years and a record sales pipeline, Acrow is well positioned to capitalize on the national construction boom. The company’s balanced portfolio and strategic focus on recurring revenue streams provide a solid foundation for continued success.
Bottom Line?
Acrow’s FY25 results and strategic positioning set the stage for growth, but execution on integration and market expansion will be key to sustaining momentum.
Questions in the middle?
- How will Acrow manage labour shortages amid rising demand for construction and industrial access services?
- What impact will the new ERP system have on operational efficiency and cost control?
- Will Acrow resume M&A activity in industrial access or other sectors beyond FY26?
