How Is Acrow Driving 23% Revenue Growth Despite Queensland Market Challenges?
Acrow Ltd reported a robust 23% revenue increase in 1H FY26, driven by its expanding Industrial Access division, even as net profit fell 22% amid Queensland market softness. The company’s strategic investments and acquisitions position it well for future growth.
- 23% revenue growth to $155.9 million in 1H FY26
- Industrial Access division now 62% of group revenue
- NPAT down 22% to $12.9 million due to subdued Queensland construction market
- Capital expenditure of $25.5 million focused on growth areas like Jumpform and Screens
- FY26 revenue guidance raised to $315–325 million with EBITDA forecast of $80–84 million
Strong Revenue Growth Amid Market Challenges
Acrow Ltd (ASX:ACF) has delivered a solid first half for fiscal year 2026, with group revenue climbing 23% to $155.9 million. This growth was primarily fuelled by the Industrial Access division, which now accounts for 62% of total revenue, underscoring the company’s successful expansion strategy in this segment. However, the net profit after tax (NPAT) declined by 22% to $12.9 million, reflecting the impact of a subdued Queensland construction market and increased depreciation expenses.
Industrial Access Division Leads Expansion
The Industrial Access division’s growth is a standout feature of Acrow’s results. Since its inception in 2019, this division has rapidly scaled through a combination of organic growth and strategic acquisitions, including MI Scaffold, Benchmark Scaffolding, Brand Australia, and Above Scaffolding. The division is well positioned to continue expanding into Western Australia and South Australia, leveraging new contract wins such as the Perdaman Urea Project and targeting sectors like defence and asset maintenance.
Capital Investment and Product Innovation
Acrow invested $25.5 million in capital expenditure during the half, focusing on growth initiatives such as the Jumpform and Screens product lines. The company accelerated purchases to meet demand from an unprecedented order book, particularly for Jumpform systems. New product launches, including the Uni-ring scaffold system and the PowerShore 60, demonstrate Acrow’s commitment to innovation and competitive pricing, with the Uni-ring system already deployed across multiple states.
Operational and Safety Considerations
While operational momentum remains strong, safety metrics showed mixed results with an increase in total recordable injuries during the period. Acrow continues to prioritise workforce training and development, with programs aimed at building long-term talent pipelines and enhancing technical expertise. The company is also implementing a new enterprise resource planning system to improve operational efficiency and scalability.
Outlook and Market Positioning
Looking ahead, Acrow expects full-year FY26 revenue between $315 million and $325 million, with EBITDA forecast between $80 million and $84 million. The company anticipates subdued trading conditions in Queensland formwork through Q3 FY26 but expects a rebound in Q4, supported by a strong pipeline of major infrastructure projects across Australia, including the Suburban Rail Loop in Victoria and the Coomera Connector in Queensland. Acrow’s strategic focus on expanding its national footprint and product offerings positions it well to capitalise on the growing infrastructure spend, particularly in Queensland’s booming market.
Bottom Line?
Acrow’s strategic investments and expanding Industrial Access footprint set the stage for growth, but Queensland market softness and safety trends warrant close monitoring.
Questions in the middle?
- How will Acrow manage the increased safety incidents amid rapid expansion?
- What impact will Queensland’s construction market recovery have on Acrow’s earnings in FY27?
- Can Acrow sustain margin improvements while integrating recent acquisitions and scaling new products?
