Tasmea Limited reported robust FY25 financial results with a 74% jump in net profit after tax, driven by organic growth and strategic acquisitions. The company reaffirmed its FY26 guidance, supported by a $43 million institutional placement to fuel further expansion.
- Statutory revenue up 37% to $548 million
- Net profit after tax rises 74% to $53.1 million
- 14 programmatic acquisitions completed over five years
- FY26 guidance targets $110 million EBIT and $70 million NPAT
- Completed $43 million fully underwritten institutional placement
Strong Financial Growth in FY25
Tasmea Limited has delivered a standout performance in its 2025 financial year, posting statutory revenue of $548 million, a 37% increase from the previous year. More impressively, statutory net profit after tax (NPAT) soared 74% to $53.1 million, reflecting the company’s successful execution of its growth strategy.
The company’s earnings before interest and tax (EBIT) also rose sharply by 60% to $74.4 million, supported by a high operating cash flow conversion ratio of 88%. This strong cash generation underscores the resilience and recurring nature of Tasmea’s specialist trade services business.
Twin-Pillar Growth Strategy Driving Momentum
Tasmea’s growth has been underpinned by a dual approach – organic expansion and programmatic acquisitions. The company has completed 14 acquisitions over the past five years, including notable additions such as Future Engineering Group, Flanco Group, Vertex Group, and West Coast Lining Systems. These acquisitions have broadened Tasmea’s service offerings and customer base across key sectors like mining, defence, infrastructure, and renewable energy.
Organic growth remains strong, with the company exceeding its internal target of 15% year-on-year growth. Tasmea’s ability to self-perform specialist services rather than subcontract has contributed to margin expansion, with pro forma EBIT margins improving to 15% in FY25.
Capital Raising and Balance Sheet Strength
To support its ambitious growth plans, Tasmea completed a fully underwritten institutional placement raising $43 million at $4.30 per share. This capital injection has reduced net leverage to below 1.0x and enhanced the company’s balance sheet flexibility. The expanded institutional register and larger free float are expected to improve Tasmea’s prospects for inclusion in the ASX300 index in March 2026, potentially increasing liquidity and investor interest.
Additionally, Tasmea secured new banking facilities with lower costs and greater flexibility, aligning with its strategic growth aspirations.
Outlook and FY26 Guidance
Looking ahead, Tasmea reaffirmed its FY26 guidance, targeting EBIT of $110 million and NPAT of $70 million, representing 32% growth. The company anticipates continued strong momentum from both organic growth and acquisitions, with a pipeline of earnings-accretive opportunities actively pursued.
Margin expansion is expected to continue, driven by strategic acquisitions in high-margin sectors, increased cross-selling, and the company’s unique capability to self-perform specialist services.
Governance and Shareholder Support
At the 2025 Annual General Meeting, all resolutions, including director re-elections and ratifications of prior share issues related to acquisitions, were passed with overwhelming shareholder support. The company’s strong safety record, exceeding 4,500 days without a lost time injury, was also highlighted, reinforcing its commitment to operational excellence.
Bottom Line?
Tasmea’s robust FY25 results and strategic capital moves position it well for accelerated growth, but investors will watch closely how acquisition integration and margin expansion unfold in FY26.
Questions in the middle?
- How will Tasmea manage integration risks from its aggressive acquisition strategy?
- What sectors or geographies will the company target next for expansion?
- Can Tasmea sustain margin improvements amid increasing scale and complexity?