Acrow Limited (ASX: ACF) is targeting a sharp FY27 earnings lift after industrial access revenue exceeded $200 million and post-year-end acquisitions expanded its platform. The FY26 result was more mixed: revenue reached a record $336 million, but underlying net profit fell 20% and the dividend was reduced.
- FY26 revenue up 27% to $336.0 million
- Industrial Access revenue up 53% to $200.9 million
- Underlying NPAT down 20% to $27.6 million
- FY27 EBITDA guidance of $105 million to $115 million
- Full-year dividend reduced to 3.42 cents per share
FY27 Guidance Sets a Higher Bar
Acrow is asking investors to look past a subdued profit result and focus on the next leg of its expansion. The company has guided to FY27 revenue of $410 million to $430 million and EBITDA of $105 million to $115 million, implying growth of about 25% in revenue at the midpoint and 37% in EBITDA from FY26.
Management said trading during the first two months of FY27 had improved significantly against the same period a year earlier, while the guidance includes the contribution from the newly acquired Ausgroup Industrial Services and Preston SuperDeck businesses. Acrow said roughly 40% of the expected revenue increase would come from acquisitions and 60% from higher activity across its existing divisions.
Industrial Access Becomes the Main Growth Engine
The strategic shift is already visible in the numbers. Industrial Access revenue rose 53% to $200.9 million, accounting for 60% of group revenue compared with 50% a year earlier. The division’s EBITDA increased 19% to $36.9 million, supported by organic activity and the full-year contribution from earlier acquisitions including Above Scaffolding and Acrow Energy and Infrastructure.
That growth helped offset a softer Construction Services performance. Construction Services EBITDA fell 8% to $56.6 million after delayed formwork project starts, particularly in Queensland, although the company said its fourth quarter was the strongest in its history. Screens revenue rose 49% to $22.4 million, jumpform revenue reached $11.7 million and the forward hire-equipment pipeline stood at a record $289.7 million, up 33%.
Revenue Growth Did Not Translate Into Higher Profit
Group revenue increased 27% to $336.0 million, but underlying EBITDA was broadly flat at $80.3 million as the business mix shifted towards Industrial Access, which carries a higher labour component and lower divisional margin. Underlying net profit after tax fell 20% to $27.6 million, while underlying earnings per share declined 21% to 8.86 cents.
Net interest expense rose 38% to $13.7 million, while depreciation increased 21% to $28.1 million after heavier investment in equipment and the full-year effect of recent acquisitions. Net debt reached $133.0 million at year end, up from $123.3 million, although net gearing declined to 41.7% and the group reported $38.9 million of bank debt headroom.
Acquisitions and Capital Raising Reshape the Balance Sheet
Acrow raised $86 million through a $70 million underwritten placement and a $16 million share purchase plan, with the proceeds directed towards acquisitions and debt reduction. It completed the $25 million purchase of Preston SuperDeck and SuperPropping equipment and rental contracts on 3 July, then acquired Ausgroup on 3 September for $22.8 million in cash plus 7.88 million Acrow shares.
Ausgroup adds industrial services capability in Mackay and Central Queensland, while SuperDeck broadens Acrow’s offering to high-rise commercial and residential construction. The acquisitions are intended to strengthen cross-selling between formwork, screens, jumpform, loading platforms and industrial access, but they also leave FY27 dependent on integration, project timing and the expected recovery in construction activity.
Dividend Cut Funds the Next Expansion Phase
The Board reduced FY26 dividends to 3.42 cents per share, down from 5.85 cents in FY25, as it chose to retain more cash for the infrastructure pipeline and Brisbane Olympic-related opportunities. The final dividend was 1.42 cents per share, fully franked, taking the total distribution below the prior year despite the record revenue outcome.
Acrow points to major infrastructure work including North East Link, River Torrens to Darlington, Snowy Hydro 2.0 and the emerging Queensland infrastructure and Brisbane 2032 pipeline. The test now is whether those projects, together with the two new acquisitions, can convert the company’s record order book into the promised margin and cash-flow improvement before higher debt and a larger share count become more prominent features of the story.
Bottom Line?
Acrow has built a larger and more diversified platform, but FY27 guidance now has to prove that scale can restore profit growth while containing debt and integration risk.
Questions in the middle?
- Can the Queensland construction recovery and infrastructure pipeline deliver the margin improvement embedded in FY27 guidance?
- How quickly will Ausgroup and Preston SuperDeck contribute earnings and cash flow after completion?
- Will stronger operating cash flow allow Acrow to reduce debt while maintaining investment in growth projects?