SSH Group Boosts Profit 79% and Expands via EMS Acquisition

Strong Financial Performance and Strategic Expansion

SSH Group Ltd (ASX:SSH) reported a robust FY26 with revenue climbing 23% to $46.2 million and net profit after tax surging 79% to $947,972. This growth reflects the company’s ongoing transition towards a vertically integrated mining and resources platform under its Hire | Mine | Own strategy.

The Group’s EBITDA edged higher to $7.1 million, while EBIT increased 11% to $3.1 million. Total equity strengthened 48% to $14.1 million, supported by a cash balance of $4.3 million at year-end. Despite a working capital deficit typical of capital-intensive operations, SSH maintains a positive adjusted working capital position bolstered by substantial hire assets.

Elphinstone Mechanical Services Acquisition Broadens Footprint

A pivotal development was the May 2026 acquisition of Elphinstone Mechanical Services (EMS), which brought established maintenance capabilities, an experienced workforce, and expanded geographic reach beyond Western Australia into Queensland. EMS complements SSH’s existing equipment hire and workforce solutions, enabling the Group to offer a more comprehensive service suite to mining and civil customers.

Integration efforts are underway with a focus on retaining EMS’s operational strengths while unlocking synergies across the Group. EMS contributed $2.26 million in revenue and $111,000 to profit before tax since acquisition. The purchase consideration included $1 million cash, 1.25 million shares subject to escrow, and deferred contingent payments linked to FY27 revenue, valued provisionally at $2.75 million with $998,000 recognised as goodwill. This acquisition significantly enhances SSH’s industrial services platform and underpins future growth opportunities.

Progress Across Hire, Mine, and Own Pillars

SSH’s Hire segment, anchored by equipment and workforce hire, showed steady performance, with focus on utilisation and capital management. The Mine vertical advanced through project execution roles at High-Tech Metals’ Mt Fisher and Wagtail Gold projects, and Western Gold Resources’ Gold Duke Project, demonstrating SSH’s expanding technical and operational mining expertise.

On the Own front, SSH secured a 6% stake in Deep Ventures Pty Ltd, a mineral exploration company targeting copper, nickel, and gold in Western Australia. This selective investment aligns with SSH’s strategy to participate directly in mining assets where operational capabilities can add value.

Strategic Partnership and Board Enhancements

During FY26, SSH established a strategic relationship with Shandong Xinhai Mining Group Co., Ltd, which became a significant shareholder and brought international engineering and project development expertise. This alliance is expected to strengthen SSH’s capacity to pursue larger and more complex mining projects.

The Board welcomed new non-executive directors Kevin Malaxos and Zhongyi (John) Zhang, enhancing governance with deep sector experience. The retirement of founding Chairman Bruce Lane marked a leadership transition after his role in SSH’s IPO and ASX listing.

New Contract and Outlook

Post-year-end, SSH signed a Letter of Intent with Cavalier Resources Limited (ASX:CVR) as preferred mining services contractor for Stage 1 of the Crawford Gold Project near Leonora, WA. This contract, covering approximately 12 months of mining operations, remains subject to final agreements and funding.

SSH enters FY27 with a larger, more integrated platform and a disciplined capital allocation approach. The company aims to continue scaling its Hire businesses, expanding mining project pipelines, and selectively pursuing Own opportunities that leverage its operational strengths and strategic partnerships.

Risks and Sustainability Focus

The Group acknowledges inherent risks including workplace safety, financial management, integration challenges, project execution uncertainties, and regulatory compliance. SSH maintains rigorous safety systems, active working capital management, and governance frameworks tailored to its growing operations.

Sustainability remains central, with ongoing commitment to safe workplaces, environmental stewardship, and constructive community engagement, especially in regional and remote areas.