SRG Global (ASX:SRG) Reports Record FY25 Results and Announces FY26 Guidance
Financial Performance
SRG Global Ltd reported FY25 revenue of $1,323.3m, a 24% increase from FY24. The company’s underlying EBITDA rose by 29% to $127.1m, while EBIT(A) increased by 43% to $93.8m. SRG Global achieved a net cash position of $16.2m following the Diona acquisition, improving from a proforma net debt of $38.2m. The EBITDA to cash conversion rate was 102%.
Dividends and Shareholder Returns
The company declared a 2H fully franked dividend of 3.0 cents per share, a 20% increase, resulting in a total FY25 dividend of 5.5 cents per share, up 22% from FY24. EPS(A) stood at 10.3 cents per share, a 34% increase from FY24.
Operational Achievements
Diona has been fully integrated as SRG Global Utilities, delivering above its business case. SRG Global recorded a Work in Hand of $3.6b and an Opportunity Pipeline of $8.5b across various industries.
Outlook
SRG Global provides FY26 guidance of approximately 10% EBITDA / EBIT(A) growth on FY25. The company has a robust pipeline with $3.6b Work in Hand and $8.5b Opportunity Pipeline, supporting long-term sustainable growth.
Executive Comments
Managing Director David Macgeorge stated, “SRG Global continues to make significant progress in the execution of our strategy. Our record FY25 result is underpinned by strong business fundamentals, excellent cash generation and solid operational delivery for our blue-chip client base.
The transition to a truly diversified infrastructure services company is continuing to deliver results. Our FY25 financial performance is clear evidence of the strength and diversity of our business and is testament to the hard work of all our people at SRG Global.
I am pleased to report that Diona delivered above business case in FY25 and is now fully integrated as SRG Global Utilities, a market leader in the water security and energy transition sectors with unparalleled self-perform capability through long-term program and asset management agreements with utility / government agencies.
SRG Global now has record Work in Hand of $3.6 billion and is well positioned for long-term sustainable growth with end-to-end asset life cycle capability in key sectors such as water, defence, resources, transport and energy across Australia and New Zealand.
Our continued strong cash performance and record FY25 result means SRG Global will pay shareholders a 2H fully franked dividend of 3.0c per share which is up 20% from 2H last year, bringing our full year FY25 dividend to 5.5c per share. This continues our track record of funding the growth phase of our strategy whilst delivering increased dividends to our shareholders.
The Company has issued FY26 earnings guidance of ~10% EBITDA / EBIT(A) growth from FY25 which continues the step-change growth journey of SRG Global.”
Motley Fool contributor Lianne Eastty 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 recommended Srg Global. 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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