SGH Ltd (ASX:SGH) Delivers Strong FY25 Results
Financial Performance
SGH Ltd reported revenue of $10.7 billion, up 1%, and EBIT of $1,537 million, an 8% increase. EBITDA rose by 6% to $2,046 million, while NPAT grew 9% to $924 million. Operating cash flow surged 49% to $1,951 million, reducing the net debt to EBITDA ratio to 2.0x.
Capital Management and Dividends
SGH declared a fully franked final dividend of 32 cents per share, bringing the total FY25 dividend to 62 cents FF, a 17% increase. The increase contributed to a Total Shareholder Return of 46% for FY25, outperforming the ASX100’s 15% return.
Executive Comments
SGH MD & CEO Ryan Stokes stated, “We are pleased with the result delivered in FY25, which demonstrates the strength of our diversified Industrial Services businesses and the disciplined execution of the SGH Way operating model. Our EBIT growth of 8% was primarily driven by Boral and Westrac and was in line with our guidance, highlighting our ability to deliver growth in variable market conditions.”
Safety
SGH reported two workplace fatalities in FY25 and achieved a 38% reduction in LTIFR and a 31% reduction in TRIFR, reflecting a strong focus on safety and injury prevention across all operations.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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