Korvest Ltd Posts 33% Profit Surge on Major Project Growth
Korvest Ltd has reported a robust half-year performance with revenues climbing 17.9% to $60.3 million and net profit after tax rising 33.2% to $5.444 million, driven by strong activity in its Industrial Products segment and strategic capital investments.
- Revenue up 17.9% to $60.3 million
- Net profit after tax increased 33.2% to $5.444 million
- Interim fully franked dividend declared at 25 cents per share
- Record capital expenditure including Kilburn site redevelopment and fleet expansion
- Strong outlook with increased major infrastructure projects and improved galvanising profitability
Half-Year Financial Highlights
Korvest Ltd has delivered a strong first half for the 2026 financial year, reporting a 17.9% increase in revenue to $60.3 million and a 33.2% jump in net profit after tax to $5.444 million. This performance reflects heightened activity in the Industrial Products segment, particularly through major infrastructure projects, alongside operational improvements in its galvanising business.
The company declared a fully franked interim dividend of 25 cents per share, maintaining the same payout as the previous corresponding period, signalling confidence in ongoing cash flow and profitability.
Drivers of Growth and Operational Developments
The Industrial Products segment, which includes the EzyStrut business, saw a 19.3% revenue increase, buoyed by multiple major projects compared to just one in the prior period. This surge was complemented by improved margins due to favourable product mix and project phasing. The small project market also showed broad-based improvement across most states.
Meanwhile, the galvanising division experienced improved plant volumes relative to the prior year, despite not matching the record second half of FY25. The business undertook a significant Christmas shutdown to replace its main galvanising kettle and install a new burner management system, expected to enhance energy efficiency and profitability going forward.
Capital Investment and Cost Management
Capital expenditure hit record levels during the half, with $1.5 million spent on the Kilburn site redevelopment and expansion of the EzyStrut transport fleet by five new trucks. The Queensland branch also relocated to a larger facility, incurring one-off moving costs and higher rent as both old and new sites were leased concurrently in December.
Cost pressures included increased labour expenses to build capacity ahead of anticipated major projects, although some project delays have pushed volumes into the second half. The company also faced engineering claim costs totaling $1.435 million related to a third-party design fault, with recovery expected but not yet confirmed.
Outlook and Market Position
Looking ahead, Korvest anticipates a stronger second half driven by continued success in securing major infrastructure projects, with two additional large projects commencing. The galvanising business expects higher plant volumes and improved profitability supported by better labour management and energy savings from recent upgrades.
Despite the positive momentum, the company cautions that the second half is unlikely to surpass the record performance of the prior corresponding period, which benefited from an accelerated supply schedule on a major project.
Bottom Line?
Korvest’s solid half-year results and strategic investments set the stage for sustained growth, though project timing and cost recoveries remain key to watch.
Questions in the middle?
- Will Korvest fully recover the $1.435 million engineering claim costs from the supplier?
- How will delays in major project materials impact second half revenue and margins?
- What is the expected timeline and impact of the Kilburn site redevelopment on operational capacity?
