Tasmea’s FY25 Surge: Revenue Soars 37%, Eyes ASX300 Inclusion

Strong Financial Performance

Tasmea Limited has delivered an impressive financial performance for the 2025 fiscal year, with statutory revenue climbing 37% to $548 million and net profit after tax surging 74% to $53.1 million. Earnings before interest and tax (EBIT) also rose 60% to $74.4 million, underscoring the company’s effective business model focused on essential fixed-plant services across mining, resources, and energy sectors.

The company’s disciplined approach is further reflected in an 88% operating cash flow conversion rate of EBIT, highlighting strong operational cash generation and financial discipline.

Growth Through Acquisitions and Organic Expansion

Tasmea’s growth story is driven by a dual strategy of organic expansion and programmatic acquisitions. The company completed four acquisitions during FY25, Future Engineering Group, West Coast Lining Systems, Flanco Group, and Vertex Group, broadening its capabilities and deepening client relationships. These acquisitions have been margin-accretive and scalable within Tasmea’s operating model.

Organic growth remains robust, with a three-year compound annual growth rate (CAGR) of 33% in EBIT, more than doubling the internal target of 15%. This growth is supported by sustained demand from electrification, infrastructure renewal, and cross-selling opportunities across its 25 subsidiaries.

Capital Strengthening and Market Recognition

In September, Tasmea completed a fully underwritten $43 million institutional placement at $4.30 per share, reducing net leverage below one times net debt to pro-forma EBITDA. This capital raise was well supported by both new and existing institutional investors, enhancing the company’s financial flexibility to pursue further acquisitions.

The company’s share price has more than tripled over the past year, rising from $1.51 at the start of FY25 to $3.70 at year-end, and reaching $5.28 by mid-November 2025. Market capitalization has soared from $340 million at IPO to over $1.3 billion, reflecting strong investor confidence and positioning Tasmea on the cusp of ASX300 index inclusion in March 2026.

Dividend Policy and Leadership Transition

Reflecting its strong cash flow and earnings, Tasmea declared fully franked dividends totaling 23 cents per share for FY25, including a 6 cent final dividend paid in November. The Board and senior executives have reinvested a significant portion of their dividends, signaling confidence in the company’s long-term strategy.

Leadership evolution is underway, with Managing Director Stephen Young preparing to transition operational responsibilities to Mark Vartuli over the coming months. This planned succession aims to maintain stability and support Tasmea’s continued growth trajectory.

Outlook and Strategic Focus

Looking ahead, Tasmea has reaffirmed FY26 guidance targeting approximately $110 million EBIT and $70 million net profit after tax, representing 32% growth. The company’s strong secured and recurring work pipeline provides high earnings visibility. A strategic acquisition announcement scheduled immediately after the AGM is expected to further underpin growth prospects.

With a capital-light operating model, consistent margin expansion, and a disciplined acquisition pipeline, Tasmea is well positioned to sustain its momentum and deliver ongoing value to shareholders.