Full Year 2025 SGH Ltd Earnings Call Transcript
Key Points
- SGH Ltd (ASX:SGH) delivered a strong FY25 result with revenue of $10.7 billion, up 1%, and EBIT of $1.54 billion, up 8%, in line with guidance.
- The company achieved a 46% total shareholder return (TSR) performance in FY25, driven by disciplined execution and strategic focus on sectors with long-duration demand tailwinds.
- Operating cash flow increased by 49% to $1.95 billion, with WesTrac, Boral, and Coates all delivering EBITDA cash conversion above 90%.
- SGH Ltd (ASX:SGH) completed the acquisition of the remainder of Boral, further cementing its position as a leading Australian diversified operating company.
- The company declared a final dividend of $0.32 per share, bringing the FY25 dividend to $0.62 per share fully franked, up 17% year on year.
- SGH Ltd (ASX:SGH) faced impairments of equity-accounted interests, impacting statutory NPAT, which was up only 5%.
- Coates experienced a 9% revenue decline due to lower customer activity in the South and softer conditions in other regions.
- The company reported two fatalities during the year, highlighting ongoing safety challenges despite improvements in safety metrics.
- Boral's quarry volumes were lower, reflecting softer roading activity and the impact of a customer dispute.
- SGH Ltd (ASX:SGH) anticipates a normalization of capital sales at WesTrac in FY26 as major fleet deliveries moderate.
Thank you for standing by, and welcome to the Seven Group Holdings Limited FY25 results announcement. (Operator Instructions)
I would now like to hand the conference over to Mr. Ryan Stokes, CEO and MD. Please go ahead.
Good morning, and welcome to the SGH results presentation for the year ended June 30, 2025. I'm Ryan Stokes, MD and CEO of SGH; and joining me today is our CFO, Richard Richards.
Slide 2. SGH is a leading Australian diversified operating business focused on industrial services and energy. Our model is centered on owning and operating leading businesses, scale, and privileged assets where we can drive results and support the delivery of outperformance.
Our performance is guided by the SGH Way, which brings together our disciplined operating model and capital allocation framework. This approach emphasizes focus, execution, and accountability with the end objective being TSR outperformance and sustainable value creation.
We
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