FDC Consolidated Holdings has lifted its FY27 revenue guidance to $2.00-$2.08 billion and normalised EBIT guidance to $105-$110 million. The upgrade follows project execution, unaudited earnings performance and new contract wins, while its order book has grown 14% since June.
- FY27 revenue guidance raised from $1.9 billion to $2.00-$2.08 billion
- Normalised EBIT guidance increased from $100 million to $105-$110 million
- Work in hand rises 14% to $2.85 billion
- Industrial, education and data centres are the largest sectors, each below 20% of work in hand
- Updated guidance assumes broadly on-schedule projects and stable trading conditions
FY27 Revenue and EBIT Guidance Lifted
FDC Consolidated Holdings Limited (ASX:FDC) has raised its FY27 revenue and normalised EBIT guidance by 5% to 10%, giving investors a more ambitious earnings target less than five months into the financial year. Revenue is now expected to reach $2.00 billion to $2.08 billion, up from the $1.9 billion prospectus forecast, while normalised EBIT has been lifted to $105 million to $110 million from $100 million.
Work in Hand Reaches $2.85 Billion
The operational support for the upgrade is an order book that stood at $2.85 billion on 31 October, $350 million or 14% higher than at 30 June. FDC said revenue delivered so far, combined with secured work scheduled for the rest of FY27, now fully supports its original prospectus revenue forecast. New contract wins and project execution have provided the basis for moving beyond that starting point.
Sector Mix Limits Single-Industry Exposure
No single sector accounts for more than one-fifth of work in hand. Industrial projects make up 18.1%, education 17.1% and data centres 16.3%, with additional wins spanning retirement living and aged care, health, public spaces and commercial work. The company said the mix also extends across both its Construction and Fitout & Refurbishment divisions, as well as different geographies and project sizes.
Margin Target Holds at About 5.3%
The upgrade is therefore primarily a scale story rather than a margin expansion story. FDC’s revised normalised EBIT margin remains approximately 5.3%, unchanged from the prospectus forecast, suggesting the higher earnings range is tied to greater revenue throughput rather than a stated improvement in profitability per dollar of work. Chief executive Russell Grady said the company remained focused on project selection, delivery quality and profitable growth.
Guidance Still Depends on Project Delivery
The numbers are not final reported results: financial information for the four months to 31 October is unaudited, and normalised EBIT is a non-IFRS measure presented consistently with the prospectus forecasts. The revised outlook assumes current trading conditions continue, projects broadly meet expected schedules and there are no material adverse changes in operating or market conditions. That leaves project timing and delivery costs as the practical tests for whether the upgraded range becomes reported performance.
Bottom Line?
FDC has increased the scale of its FY27 target, but with margin guidance unchanged, execution and cost control will determine how much of the larger order book reaches EBIT.
Questions in the middle?
- Can FDC deliver the enlarged project pipeline without allowing delivery costs or timing slippage to pressure its approximately 5.3% margin?
- How much of the $2.85 billion work-in-hand balance will convert into revenue during FY27?
- Will further contract wins replenish the order book after the current secured work is delivered?