SKS Technologies Doubles Profit and Boosts Revenue to $261 Million in FY25

Robust Growth in FY25

SKS Technologies has delivered an impressive financial performance in the fiscal year ending 2025, showcasing significant organic growth alongside strategic moves to broaden its market footprint. Tender activity surged by 46%, climbing from approximately $354 million to $517 million, while the company's work on hand more than doubled to $200 million. This strong pipeline underpins the company’s ability to sustain momentum across both traditional electrical services and the burgeoning data centre sector.

Revenue in the traditional business rose by 15.2% to $121 million, supported by a repeat business rate of 94%, indicating strong client loyalty and successful project execution. The company also enhanced its financial flexibility, increasing bank facilities by nearly 62% to $34 million and boosting working capital by over 200%, reflecting a solid balance sheet and cash position with zero debt.

Strategic Acquisition to Capture Sydney Market

In a decisive step to expand its presence in Australia’s largest data centre market, SKS Technologies announced the acquisition of Delta Elcom, a Sydney-based electrical and communications specialist with a proven track record in data centre projects. The $13.75 million deal, comprising $11.75 million in cash and $2 million in scrip plus an earnout capped at $1.25 million, is expected to complete in January 2026.

This acquisition provides SKS with immediate access to the Sydney market, complementing its strong foothold in Melbourne and other regions. Delta Elcom’s capabilities and culture align well with SKS’s, promising a seamless integration that should accelerate growth and enhance service offerings to data centre clients in New South Wales.

Operational Excellence and Margin Expansion

SKS has also focused on consolidating its operations to support rapid growth. Investments in IT systems, employee training, and safety culture have fortified the company’s operating platform. These efforts contributed to a substantial improvement in profitability, with profit before tax margin rising from 4.8% to 7.9%, EBITDA increasing by 161.2% to $23.47 million, and net profit after tax doubling to $14 million.

Overhead costs have been contained effectively, enabling the company to support revenues up to $350 million without significant margin dilution. The company’s strategic focus on high-margin work and rigorous cost management has positioned it well to capitalize on the expanding data centre sector and other market segments.

Outlook and FY26 Guidance

Looking ahead, SKS Technologies forecasts FY26 revenue of around $320 million and aims to further improve its profit before tax margin to 9%. The company’s growth strategy remains balanced between organic expansion and opportunistic acquisitions, supported by a robust pipeline of opportunities across data centres, corporate, government, healthcare, and other sectors.

With a strengthened balance sheet, enhanced operational capabilities, and a clear vision to drive innovation in electrical technology solutions, SKS is well-positioned to meet the accelerating market demand and deliver sustained shareholder value.