Korvest Posts 17.9% Revenue Growth as Kilburn Redevelopment Advances
Korvest has reported a solid first half for FY26 with revenue up 17.9% and EBIT rising 36.3%, underpinned by major project wins and operational upgrades. The Kilburn redevelopment is progressing on schedule, setting the stage for further growth.
- Revenue increased 17.9% to $60.3 million in H1 FY26
- EBIT surged 36.3% to $7.88 million
- Major project revenue and new contract wins driving growth
- Successful ERP system transition and galvanising upgrades
- Kilburn redevelopment construction underway and on budget
Strong Financial Performance
Korvest (ASX – KOV), a key player in engineered solutions for infrastructure and industrial construction, has delivered a robust first half for the 2026 financial year. The company reported a 17.9% increase in revenue to $60.3 million, alongside a 36.3% jump in earnings before interest and tax (EBIT) to $7.88 million compared to the prior corresponding period. Net profit after tax rose to $5.44 million, reflecting operational efficiencies and higher-margin project work.
Growth Fueled by Major Projects and Operational Upgrades
Korvest’s growth was driven largely by an uptick in major project revenue, with three significant projects supplied during the period and two more set to commence in the second half. The company also successfully transitioned to a new enterprise resource planning (ERP) system in October 2025, enhancing operational capabilities. Upgrades to galvanising equipment, including a new kettle and burner management system, have improved production efficiency and product quality.
Capital Investment and Kilburn Redevelopment
Capital expenditure remained elevated at $3.62 million for the half, focused on expanding capacity and modernising facilities. Notably, the Kilburn redevelopment project is progressing well, with construction milestones such as retaining walls, earthworks, and steel erection on track. This redevelopment is expected to bolster manufacturing capabilities and support future growth initiatives.
Operational Highlights and Challenges
Korvest expanded its footprint with a new Brisbane distribution site and is advancing plans for a larger facility in Western Australia. The company also reported a $566,000 remediation cost linked to a third-party design fault, with recoveries anticipated but not yet confirmed. Despite higher labour and raw material costs, particularly zinc, Korvest managed to mitigate impacts through strategic purchasing and operational improvements.
Outlook
Looking ahead, Korvest expects the second half of FY26 to outperform the first, driven by a solid pipeline of infrastructure projects and continued strength in day-to-day and small project markets. The galvanising segment is also poised for improvement, supported by large project activity. The company declared a 25 cent interim dividend, maintaining a disciplined capital management approach with the dividend reinvestment plan remaining suspended.
Bottom Line?
Korvest’s first half momentum and strategic investments position it well for a stronger second half and sustained growth.
Questions in the middle?
- Will Korvest secure further major project contracts to sustain growth?
- How will the Kilburn redevelopment impact operational capacity and margins long term?
- What is the timeline and certainty around recovering remediation costs?
