Acrow Limited has reported record new hire contracts and a robust sales pipeline, confirming FY26 guidance and issuing optimistic initial guidance for FY27 revenue and earnings.
- Record $14.3 million in new hire contracts secured in March
- Sales pipeline reaches a record $256 million, up 34% year-on-year
- FY26 revenue and EBITDA guidance confirmed
- Initial FY27 guidance projects 7% revenue growth and 13% EBITDA increase
- Strong momentum driven by Queensland formwork market and diversified revenue streams
Record Contract Wins Signal Growth
Acrow Limited (ASX:ACF), a leader in integrated construction systems, has announced a milestone month with $14.3 million in new hire contracts secured in March; the highest monthly figure in the company's history. This achievement not only surpasses the previous record by over $2.5 million but also underscores the improving activity levels across Australia’s construction sector.
Robust Sales Pipeline and Confirmed FY26 Guidance
The company’s sales pipeline now stands at a record $256 million, reflecting a 34% increase compared to the prior corresponding period. This strong pipeline supports Acrow’s confirmation of its FY26 revenue guidance, expected between $315 million and $325 million, and EBITDA guidance of $80 million to $84 million. The company anticipates the fourth quarter to be its strongest for the year, driven by heightened demand and operational momentum.
Positive Outlook for FY27
Looking ahead, Acrow has issued initial guidance for FY27, forecasting revenue between $335 million and $350 million and EBITDA ranging from $88 million to $98 million. This represents a 7% increase in revenue and a 13% rise in EBITDA at the midpoint compared to FY26. The company attributes this optimism to a diversified revenue base and particularly strong performance in Queensland’s formwork market, where hire revenues reached their highest level in over a year.
Strategic Diversification Driving Resilience
CEO Steven Boland highlighted that Acrow’s strategic diversification over the past three years has positioned the company well to capitalize on the next construction cycle upswing. By expanding beyond traditional construction services into civil infrastructure and industrial access, Acrow has built a more sustainable earnings base capable of weathering industry cycles.
Looking Ahead
With a national footprint spanning 15 locations and over 60,000 tonnes of equipment, Acrow is well placed to leverage its strong order book and market conditions. The company’s early FY27 guidance reflects confidence in continued growth, but investors will be watching closely to see how these projections translate into actual performance amid evolving market dynamics.
Bottom Line?
Acrow’s record contract wins and confident FY27 guidance set the stage for a potentially strong year ahead, but execution risks remain.
Questions in the middle?
- How sustainable is the recent surge in Queensland’s formwork market?
- What impact will broader economic conditions have on Acrow’s diversified revenue streams?
- Will Acrow’s operational costs remain stable as it scales into FY27?