Sco Technology forecasts a record FY26 with revenue up to NZ$296 million and operating EBITDA reaching NZ$36 million, reflecting strong progress on its ambitious Destination 2030 growth plan.
- FY26 revenue guidance of NZ$290–296 million
- Operating EBITDA expected between NZ$34–36 million
- Destination 2030 strategy driving growth and operational improvements
- Key Account and Lifecycle Services frameworks expanding customer reach
- Innovation and unified operating model underpinning long-term ambitions
Record Financial Year in Sight
Sco Technology (NZX:SCT) is on track for a standout FY26, projecting revenue between NZ$290 million and NZ$296 million, surpassing last year’s NZ$275 million. Operating EBITDA is also set to hit a record NZ$34 million to NZ$36 million, up from NZ$31.5 million in FY25. This guidance marks a significant milestone as the company nears the first anniversary of its Destination 2030 growth strategy.
Destination 2030 Strategy Gains Traction
Launched last year, Destination 2030 aims to nearly double Sco’s revenue to NZ$530 million by 2030. CEO Mike Christman highlighted that the company has begun laying the foundational capabilities necessary to achieve this ambitious target. The strategy’s impact is already visible in commercial outcomes, with Sco building stronger, more integrated customer relationships and enhancing operational discipline.
Key initiatives include the rollout of a global Key Account Management Framework, which fosters cross-domain collaboration to secure larger, integrated contracts. A notable example is the recent JBS US Poultry order, where Sco has positioned meat processing as a strategic focus within its Materials Handling & Logistics domain.
Expanding Recurring Revenue and Operational Unity
Sco is also embedding a global Lifecycle Services Framework designed to deepen long-term customer partnerships and boost recurring revenue streams. The company targets service revenue to exceed 35% of total revenue by FY30, up from 29% in FY25, reflecting a shift towards sustained engagement beyond initial project delivery.
Alongside these customer-focused moves, Sco is advancing its One Sco operating model by investing in unified global systems and governance. This includes the creation of a single customer platform and a global HR information system, aimed at strengthening collaboration and supporting scalable growth.
Innovation as a Growth Lever
Innovation remains a cornerstone of Sco’s strategy, with a group-wide Innovation Framework now in place. Dedicated innovation leaders across business domains, backed by central R&D investment, are driving a pipeline of technologies aligned to customer needs and market trends. This disciplined approach aims to keep Sco at the forefront of automation and robotics advancements.
Christman noted that global manufacturing’s increasing focus on robotics and automation provides a strong macro tailwind supporting Sco’s growth ambitions. The company’s diverse footprint across Australasia, China, Europe, and America positions it well to capitalise on these trends.
Looking Ahead to FY26 Results
Sco plans to release its full FY26 results on 22 October 2026, which will provide a clearer picture of how these strategic initiatives have translated into financial performance. The company’s recent half-year report showed 7% EBITDA growth driven by Materials Handling and Mining, supporting optimism for a stronger second half despite external uncertainties.
As Sco progresses towards its 2030 target, investors will be keen to see if the company can maintain momentum, particularly in expanding service revenues and securing large integrated contracts that underpin its growth narrative.
Bottom Line?
Sco Technology’s FY26 guidance and strategic progress suggest it is building a solid platform for long-term growth, but execution on service revenue expansion and key account wins will be critical to sustaining momentum.
Questions in the middle?
- Can Sco sustain its service revenue growth to meet the 35% target by FY30?
- How will the global economic environment impact large integrated contract wins?
- Will the Innovation Framework translate into commercially viable new technologies?