Symal Group Limited reported a robust half-year performance with revenues climbing 24.6% to $504.2 million and announced key acquisitions to bolster its infrastructure footprint. The company also secured $300 million in new debt facilities to support its expansion plans.
- Statutory revenue up 24.6% to $504.2 million
- EBITDA increased 29.1% to $43.8 million
- Announced conditional acquisitions of Timms Group, L&D Contracting, and Davison Earthmovers
- Secured $300 million revolving corporate debt and bank guarantee facilities
- Declared fully franked interim dividend of 3.3 cents per share
Strong Financial Performance
Symal Group Limited has delivered a compelling first half for the 2026 financial year, posting statutory revenue of $504.2 million, marking a 24.6% increase over the prior corresponding period. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 29.1% to $43.8 million, reflecting operational strength across its core contracting and plant hire segments.
Normalised EBITDA, which adjusts for one-off items including merger and acquisition costs and tax benefits from the pre-IPO restructure, grew 5.5% to $51.4 million. This solid performance underscores Symal’s ability to scale its operations while managing costs effectively amid a competitive infrastructure market.
Strategic Acquisitions Drive Expansion
During the half-year, Symal expanded its footprint through the acquisitions of Locale Civil and McFadyen Pipeline Construction, adding valuable capabilities in civil construction and water infrastructure. These acquisitions contributed incremental revenue and profits, enhancing the Group’s diversified service offering.
Looking ahead, Symal has entered into conditional agreements to acquire Timms Group and L&D Contracting for $28 million upfront, with an earn-out linked to performance, as well as an 80% stake in Davison Earthmovers for $23.2 million. These moves signal a clear strategy to deepen market penetration in Queensland and South Australia, tapping into established local operators with strong client relationships.
Capital Structure and Financial Position
To support its organic and inorganic growth ambitions, Symal secured $300 million in new revolving corporate debt and bank guarantee facilities from major Australian banks, including NAB, Commonwealth Bank, and Westpac. This facility comprises a $100 million cash advance and a $200 million multi-use facility, providing ample headroom for future investments.
The Group’s net cash position, excluding lease liabilities, stood at $6.1 million at 31 December 2025, with drawn debt of $120 million. Symal also increased its performance bonding capacity to $100 million, reflecting confidence in its project pipeline and risk management capabilities.
Operational Highlights and Outlook
Symal’s work in hand was approximately $1.64 billion at the half-year mark, a slight decrease from $1.76 billion at the previous June, reflecting normal fluctuations in project awards. The contracting services segment saw a 26.4% revenue increase, driven by wins in data centres and infrastructure projects, though margins softened due to a higher proportion of lower-margin contracts and expansion investments.
The plant and equipment segment experienced a modest 5% revenue rise but faced margin pressures from increased investment in people and assets to support growth. The Group reaffirmed its full-year EBITDA guidance of $117 million to $127 million, excluding contributions from pending acquisitions, with updates expected post-completion.
Shareholder Returns
Reflecting its strong cash flow and profitability, Symal declared a fully franked interim dividend of 3.3 cents per share, payable in April 2026. The Board continues to evaluate the implementation of a dividend reinvestment plan to provide shareholders with flexible options for participation in future growth.
Bottom Line?
Symal’s robust half-year results and strategic acquisitions position it well for sustained growth, though investors will watch closely for the impact of pending deals and margin trends.
Questions in the middle?
- How will the integration of Timms Group, L&D Contracting, and Davison Earthmovers affect Symal’s margins and earnings?
- What is the timeline and likelihood of completing the announced acquisitions?
- How will the new debt facilities influence Symal’s capital expenditure and acquisition strategy in the coming year?