FOS Capital has started FY27 ahead of its own expectations, reporting a 64% rise in quarterly sales and a stronger-than-forecast EBITDA result. The order book has expanded to $10.5 million, while major lighting wins and a $130 million quote pipeline support management’s expectation of similarly strong sales in 2Q27.
- Unaudited 1Q27 sales of $7.25 million, up 64% year on year
- EBITDA reached $0.55 million, ahead of September guidance
- Order book rose 15% to $10.5 million
- Monash Medical Clinic and Queensland schools projects secured
- $1.82 million capital raise completed
Sales and EBITDA exceed September guidance
FOS Capital Limited (ASX:FOS) has opened FY27 ahead of its own forecast, with unaudited first-quarter sales of $7.25 million and EBITDA of $0.55 million. Sales were 64% above the prior corresponding period, while both measures came in above the targets outlined in the company’s September trading update.
The result marks a sharp improvement from the earlier earnings outlook, which had pointed to roughly $7.2 million of quarterly revenue and $0.5 million of EBITDA. The company attributed the performance to improved sales activity, a stronger order book and continuing benefits from its cost-reduction program. The earlier September trading forecast had already flagged a return to quarterly profitability.
Order book expands as project wins land
FOS’s order book stood at $10.5 million at 30 September, up 15% on the year-earlier position. During the quarter, it secured the roughly $1 million Monash Medical Clinic project and the Queensland Schools Lighting Upgrade Program, which carries expected sales of about $2.5 million.
The Queensland program was already progressing through orders when FOS reported in late August, with the project expected to generate $2.5 million of sales over six to nine months. Its inclusion among the quarter’s significant wins indicates that the opportunity is now feeding into the company’s operating pipeline, although the filing does not provide a revised delivery schedule or margin outlook for either project.
Beyond secured work, the active quote pipeline remains approximately $130 million. That figure is an opportunity pool rather than booked revenue, and the key execution question is how quickly FOS can convert quotations into firm orders and then recognise sales.
Capital raise completed ahead of second-quarter update
FOS also confirmed completion of a $1.82 million capital raise through an institutional placement and Share Purchase Plan. The funding follows the company’s Queensland lighting placement, which was directed towards the schools program, Aldridge Traffic Systems expansion and cost-reduction initiatives.
Management expects 2Q27 sales volumes to be similarly high to those delivered in the first quarter. FOS said the order book, record quote pipeline and ongoing cost savings should support further earnings improvement, while Managing Director Con Scrinis said the company would provide a further update at its annual general meeting on 28 October.
Bottom Line?
FOS has cleared its first FY27 hurdle, but the next test is whether the $130 million quote pipeline converts into repeatable, profitable orders rather than isolated project wins.
Questions in the middle?
- How much of the $130 million quote pipeline can FOS convert into firm orders during FY27?
- Will the cost-reduction program deliver sustained EBITDA improvement beyond the first quarter?
- What additional detail will management provide on project margins, Aldridge Traffic Systems and capital allocation at the 28 October AGM?