Scott Technology delivered record FY26 revenue and operating EBITDA, lifted its full-year dividend to 9 cents per share and issued FY27 guidance for further growth. The harder question is whether a lighter forward-work balance and higher investment can support the next phase of its Destination 2030 plan.
- Record NZ$294.1 million revenue, up 7%
- Operating EBITDA rose 14% to NZ$36.1 million
- Recurring revenue reached NZ$95 million, or 32.3% of group revenue
- FY27 guidance set at NZ$310-340 million revenue and NZ$36-41 million operating EBITDA
- Full-year dividend increased to 9 cents per share
Record earnings raise the bar for FY27
Scott Technology Limited (NZX:SCT) has broken through its recent revenue plateau, reporting record FY26 revenue of NZ$294.1 million and operating EBITDA of NZ$36.1 million for the year ended 31 August. Revenue rose 7% and operating EBITDA increased 14%, while net profit after tax climbed 10.3% to NZ$15.7 million. The stronger profit result was helped by a one-off supplier settlement cost in FY26, but the central operating message was clear: earnings grew faster than sales.
The second half did much of the work. Scott reported H2 revenue of NZ$166 million and operating EBITDA of NZ$23.1 million, compared with NZ$13.0 million in the first half. Mining led the expansion, with revenue up 22% to NZ$62.3 million, while Materials Handling and Logistics increased revenue 5% to NZ$129.9 million. The result also confirms the earlier NZ$20 million MHL contracts, which were announced across North America and Europe and are expected to contribute mainly from FY27.
Lifecycle services become a larger part of the business
Scott’s more durable growth story is its expanding installed base. Recurring revenue from lifecycle services rose 9% to NZ$95 million, representing 32.3% of group revenue, up from 31.7% a year earlier. That mix includes parts, maintenance, software, remote support, upgrades and other activity after equipment has been installed. Scott is targeting more than 35% of revenue from recurring sources by FY30.
The shift is visible across the domains, although not evenly. Mining recurring revenue represented 27% of domain revenue, Protein 50%, MHL 31% and Appliances 15%. Protein revenue fell about 3% to NZ$67.3 million as equipment volumes and project timing weighed, but higher service and parts revenue helped lift its margin to 36%. The division’s NZ$165 million Protein target, previously outlined alongside BladeStop’s Mexico expansion, remains part of the company’s longer-term growth plan.
Balance sheet improves while investment continues
Operating cash flow rose to NZ$23.8 million from NZ$22.3 million, and net debt fell to NZ$7.7 million from NZ$12.3 million. Cash was NZ$15.0 million at year-end, against a bank overdraft of NZ$8.9 million and borrowings of NZ$13.8 million. Inventory increased to NZ$42.2 million, which Scott said reflected stock held for orders expected early in FY27.
The board declared a fully imputed final dividend of 5 cents per share, taking the FY26 total to 9 cents, compared with 8 cents in FY25. That payout remains below the company’s stated 50% to 80% adjusted NPAT target range because Scott expects to retain flexibility for Destination 2030 investment in innovation, people and systems. The dividend reinvestment plan will apply.
FY27 guidance depends on converting foundations into orders
Scott guided to FY27 revenue of NZ$310 million to NZ$340 million and operating EBITDA of NZ$36 million to NZ$41 million. That implies further top-line growth, but the EBITDA range begins at roughly the FY26 outcome, despite the company expecting to invest more in its innovation pipeline, customer capability and operating platform. Its FY30 targets remain NZ$530 million of revenue, an operating EBITDA margin of about 14% and recurring revenue above 35% of group revenue.
Forward work stood at NZ$146 million at year-end, down from NZ$169 million a year earlier and below the NZ$177 million reported at the half year. Scott attributed the fall to faster project delivery, contract timing and about NZ$11 million of cancellations in Appliances and MHL. Without those cancellations, equipment forward work would have been about NZ$129 million, broadly in line with FY25. The company also flagged continuing macroeconomic and geopolitical volatility that may affect the timing of customer capital expenditure.
Execution risk moves from strategy design to delivery
FY26 was the first full year of Destination 2030, during which Scott completed domain market analysis and established Key Account Management, Lifecycle Services and Innovation frameworks. The next test is less about announcing those structures than making them commercially productive: larger pipelines, repeatable technology, higher service penetration and better productivity across the global operating model.
The audited accounts also identify revenue recognition on fixed-price contracts as a key audit matter, because profit depends on estimates of project completion costs. Goodwill impairment testing for the Australian and Americas cash-generating units received particular scrutiny, with the accounts noting that lower-than-assumed earnings improvement could remove headroom in sensitivity scenarios. Those disclosures do not amount to an impairment, but they mark the areas where delivery against FY27 budgets will matter most.
Bottom Line?
Scott enters FY27 with better earnings, cash generation and recurring revenue, but the next proof point is whether its strategy can replenish forward work while protecting margins through heavier investment.
Questions in the middle?
- Can Scott rebuild its equipment forward-work balance after the disclosed cancellations and lower year-end pipeline?
- Will the Protein and MHL growth plans translate into revenue without eroding the improved group margin?
- How much of FY27 operating EBITDA will be absorbed by investment in innovation, people and the One Scott platform?