Tasmea Limited posted a robust 62.4% revenue increase to $400.5 million in H1 FY26, alongside a 32.2% rise in underlying profit after tax, despite a dip in statutory net profit. The acquisition of WorkPac Group marks a strategic expansion into workforce solutions.
- 62.4% revenue growth to $400.5 million in H1 FY26
- Underlying profit after tax up 32.2% to $26.6 million
- Statutory net profit declined 19.8% to $22.3 million
- Net cash from operating activities nearly doubled
- Acquisition of WorkPac Group expands workforce solutions segment
Strong Revenue Growth Amid Market Expansion
Tasmea Limited has delivered a striking 62.4% increase in revenue for the half-year ended 31 December 2025, reaching $400.5 million compared to $246.7 million in the previous corresponding period. This surge reflects the company’s expanding footprint in industrial services and workforce solutions, underscoring its ability to capture growing demand across multiple sectors.
Underlying Profit Rises Despite Statutory Net Profit Dip
While statutory net profit after tax fell by 19.8% to $22.3 million, Tasmea’s underlying profit after tax rose 32.2% to $26.6 million. The divergence stems from non-recurring items and accounting adjustments, including acquisition-related costs and amortisation of intangibles. This underlying figure offers a clearer view of the company’s operational health and ongoing profitability.
Robust Cash Flow and Dividend Continuity
Net cash generated from operating activities nearly doubled to $46.1 million, highlighting strong cash conversion and operational efficiency. Tasmea declared a fully franked interim dividend of 6.0 cents per share, consistent with the prior year, signalling confidence in sustained cash flow and shareholder returns.
Strategic Acquisition of WorkPac Group
In a significant strategic move, Tasmea’s wholly owned subsidiary acquired 100% of WorkPac Group on 1 December 2025. WorkPac is a leading Australian workforce solutions provider, offering recruitment and staffing services across mining, construction, engineering, and other sectors. This acquisition establishes a dedicated Workforce Solutions segment within Tasmea, enhancing its capability to source and deploy skilled labour at scale across its core operating divisions.
Looking Ahead
The acquisition positions Tasmea to leverage synergies between its existing services and WorkPac’s recruitment expertise, potentially driving further revenue growth and operational integration benefits. However, investors will be watching closely how the company manages integration risks and realises anticipated efficiencies.
Bottom Line?
Tasmea’s strong underlying performance and strategic acquisition set the stage for accelerated growth, but integration execution will be key.
Questions in the middle?
- How will the WorkPac acquisition impact Tasmea’s earnings in the next reporting period?
- What specific non-recurring items caused the statutory net profit decline despite underlying profit growth?
- How effectively can Tasmea integrate WorkPac’s operations to realise expected synergies?