Tasmea raises FY27 target as Maxim and JPS join record earnings platform

Record earnings meet a higher FY27 target

Tasmea Limited (ASX:TEA) has entered FY27 with a larger earnings base and a more demanding test of execution after reporting record FY26 results and upgrading its outlook. Statutory revenue surged 136% to A$1.293 billion, statutory EBIT rose 55% to A$115.3 million and statutory NPAT increased 34.3% to A$71.3 million.

On Tasmea's preferred underlying measures, EBITA climbed 54.3% to A$118.1 million and NPATA rose 42.5% to A$73.7 million. The board now expects underlying FY27 EBITA of A$205 million to A$210 million and NPATA of A$130 million to A$133 million, compared with the earlier EBITA range of A$202 million to A$208 million and NPATA range of A$128 million to A$132 million.

The upgraded guidance assumes a full-year contribution from Maxim, 11 months from JPS and 10% to 15% organic growth across the existing businesses. That is a sizeable set of assumptions, rather than merely a continuation of the reported FY26 trajectory.

Maxim and JPS extend the acquisition engine

The two post-year-end acquisitions are central to the new forecast. Tasmea completed Maxim Group on 1 July 2026 for total consideration of up to A$283 million, including A$219 million upfront and up to A$64 million in earn-outs. Maxim expands the Electrical segment into data centres, battery energy storage systems and major infrastructure, and the annual report says its FY26 underlying EBIT was expected to be about A$47 million. The deal was previously reported as the Maxim acquisition, which expanded Tasmea's national electrical footprint.

JPS Group followed on 3 August for up to A$78 million, comprising A$56 million upfront and up to A$22 million in earn-outs. It adds LNG, gas and critical energy infrastructure exposure to the Mechanical segment, alongside more than 10 long-term Master Services Agreements and technology-enabled isolation services. The JPS Group acquisition had earlier been described as bringing a specialist energy services provider into Tasmea's platform.

Neither acquisition contributed to FY26 because both completed after 30 June. The accounting disclosures show the potential obligations clearly: Maxim carries up to A$70 million of additional earn-outs and JPS up to A$25 million, with payments tied to maintainable EBIT hurdles. Tasmea also issued shares with floor-price guarantees as part consideration, creating derivative exposures linked to the company's share price.

WorkPac changes the shape of the group

The year's largest change was the A$62 million acquisition of WorkPac, completed on 1 December 2025. Workforce Solutions contributed A$616.9 million of revenue in its first seven months, representing about 47.7% of group revenue, although its profit contribution was modest: the acquired business recorded a loss after tax of A$0.3 million for the period after corporate costs.

That mix shift helps explain why group gross margin fell to 19.4% from 29.2%. Labour hire produces much higher revenue with lower gross margins than Tasmea's specialist trade businesses, so the decline does not, on its own, establish deterioration in the core operations. Tasmea said the specialist trade businesses' underlying EBIT margin excluding Workforce Solutions improved from 13.4% in the first half to 18.5% in the second half.

Cash generation supports dividends and further deals

Operating cash flow before interest and tax more than doubled to A$147.1 million, while net cash from operating activities rose to A$91.0 million. Cash and equivalents stood at A$66.9 million at 30 June, against borrowings of A$126.4 million, and Tasmea said it complied with its financial covenants, including a maximum net leverage ratio of 2.25 times.

The board declared a fully franked final dividend of 8.5 cents per share, taking FY26 dividends to 24.5 cents per share including the 10-cent special dividend paid in June. The payout demonstrates the group's cash-generative model, but future capital allocation will need to balance distributions against the funding requirements of a strategy that has already included WorkPac, Maxim and JPS in quick succession.

Pipeline visibility comes with concentration and integration risks

Tasmea began FY27 with approximately A$1.44 billion of secured and recurring work, up from A$719 million a year earlier, across more than 125 Master Service Agreements and Facilities Management Agreements. Electrical revenue grew 38.3% to A$300.0 million in FY26, while Civil revenue also grew strongly; Mechanical performance was affected by cancelled nickel-related drill-rig hire and a deferred drill-rig sale.

The annual report also identifies the less convenient parts of the growth story. About 23% of external revenue came from one leading global mining group, skilled labour remains a constraint, and project commencement delays can defer revenue. The report's first climate disclosures flag extreme heat, flooding and changing demand for combustion-plant services, while no group-wide emissions reduction targets or formal climate transition plan has yet been adopted.

The next meaningful evidence will be whether the enlarged platform converts its pipeline into earnings at the margins assumed in the FY27 guidance, while absorbing Maxim and JPS without stretching the balance sheet or diluting the cash returns that helped make the acquisition strategy attractive in the first place.