Wagners Doubles Power Pole Sales, Lifts FY26 EBIT Guidance
Wagners Holding Company Limited has reported a strong start to FY26 with robust demand across its construction materials and composite fibre technologies segments, prompting an upgrade to its EBIT guidance.
- FY26 H1 EBIT guidance raised to $31-$33 million
- Full-year EBIT forecast increased to $52-$56 million
- Construction materials volumes up, driven by new concrete plants
- Composite Fibre Technologies power pole sales expected to double FY25 levels
- Investments underway to expand production capacity ahead of Brisbane 2032 Olympics
Strong Start to FY26
Wagners Holding Company Limited (ASX – WGN) kicked off the 2026 financial year with encouraging momentum, as revealed in its recent trading update delivered at the 2025 Annual General Meeting. The diversified construction materials and services provider highlighted sustained strength in demand across its core segments, underpinning an upward revision of its earnings before interest and tax (EBIT) guidance.
Construction Materials Segment Gains Traction
The company reported improved volumes in cement, concrete, and quarry operations, driven in part by the opening of new concrete plants at Slacks Creek and Wulkuraka. These expansions have contributed to record concrete volumes in October and are expected to sustain growth through the remainder of the year. Operational efficiencies and stable market conditions have also supported margin improvements, reflecting better plant utilisation.
Composite Fibre Technologies Surges
Wagners’ Composite Fibre Technologies (CFT) business has experienced a remarkable surge, with power pole sales projected to double compared to FY25. This growth is complemented by improved margins stemming from production efficiencies and disciplined project selection. The custom build segment within CFT has also delivered enhanced performance, benefiting from well-executed pedestrian infrastructure projects.
Outlook and Strategic Positioning
Looking ahead, Wagners maintains a positive outlook bolstered by anticipated infrastructure activity linked to the Brisbane 2032 Olympics. The company is proactively investing in expanding its concrete plant network and manufacturing capacity within CFT to meet rising demand. However, it also acknowledges potential headwinds in the second half of FY26, including seasonal volume dips, increased clinker and shipping costs, and the completion of certain bulk haulage projects.
Guidance Upgrade Reflects Confidence
Reflecting these dynamics, Wagners now forecasts first-half EBIT between $31 million and $33 million, a significant increase from $20.3 million in H1 FY25. Full-year EBIT guidance has been raised to a range of $52 million to $56 million, up from $41.8 million in FY25. This upgrade signals the company’s confidence in sustaining growth amid a buoyant construction sector.
Bottom Line?
Wagners’ upgraded guidance and capacity investments position it well for growth, but seasonal and cost pressures in H2 warrant close monitoring.
Questions in the middle?
- How will rising clinker and shipping costs impact margins in the second half of FY26?
- Can Wagners sustain the rapid growth in Composite Fibre Technologies beyond FY26?
- What progress will be made on new quarry developments and their contribution to volumes?
