SKS Technologies Surges with $130M Data Centre Win and 52.5% Profit Jump

Strong Financial Momentum

SKS Technologies Group Limited (ASX: SKS) has delivered another impressive half-year result for the first half of FY26, showcasing significant growth across key financial metrics. Net profit after tax surged 52.5% to $8.81 million, while sales revenue climbed 13.6% to $131.75 million. These gains reflect the company’s successful execution of its growth strategy, particularly in the burgeoning data centre sector.

EBITDA and pre-tax profit also saw substantial increases of 42.9% and 52.8% respectively, underscoring improved operational efficiency and margin expansion. The company’s earnings per share rose nearly 50%, and it declared a fully franked interim dividend of 3.5 cents per share, a notable increase from the inaugural 1 cent dividend in 1H25, signalling strong confidence in ongoing cash flow generation.

Strategic Acquisition and Major Contract Wins

Central to SKS’s growth narrative is the acquisition of Delta Elcom, a New South Wales-based electrical solutions and data centre infrastructure business. This move enhances SKS’s scale and expertise in the fast-growing data centre market, enabling it to compete for larger, more complex projects nationally. Integration efforts are well underway, aiming to unify operations and customer bases under the SKS Technologies brand.

Highlighting its expanding footprint, SKS secured its largest contract to date, a $130 million project to design and construct electrical systems for a 90MW hyperscale data centre in Melbourne. This contract, alongside other major projects completed across multiple states, reflects the company’s ability to deliver high-value infrastructure solutions to blue-chip and government clients.

Robust Orderbook and Cash Position

SKS’s orderbook reached a record $325 million, representing a 58.6% increase on the prior corresponding period. Notably, $177 million of this is allocated to FY27, extending the company’s revenue visibility beyond the typical 12-month horizon. The pipeline continues to grow, boosted by strong demand in data centres and traditional sectors alike.

Financially, SKS strengthened its position by increasing bank facilities from $21 million to $32 million and maintaining cash reserves near $52 million. Working capital nearly doubled to $18.37 million, supporting the company’s aggressive orderbook expansion and underpinning its FY26 revenue guidance of $340 million with an expected pre-tax profit of approximately $34 million.

Outlook Amid Market Opportunities

CEO Matthew Jinks emphasised the company’s momentum and strategic focus on data centres, a sector poised for exponential growth driven by contracted customer commitments. SKS’s rapid rise in this specialised market, achieving high-value contracts within just two and a half years, is a testament to its operational excellence and strong client relationships.

Despite a cautious economic backdrop, SKS remains confident in its growth trajectory, leveraging a robust balance sheet, a skilled workforce, and a diversified service offering spanning electrical technologies, communications, and digital infrastructure. The company’s Indigenous Technologies division also continues to contribute positively, blending commercial success with social impact.